POST UTME WELLSPRING UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A bank's balance sheet shows that its total assets are ₦500,000,000 and its total liabilities are ₦300,000,000. What is the bank's equity?
A. ₦100,000,000
B. ₦150,000,000
C. ₦200,000,000
D. ₦250,000,000
Question 2
A sole trader, Mr. A, has a capital of ₦500,000. He also has a loan of ₦200,000 from a bank. What is his total capital?
A. ₦700,000
B. ₦600,000
C. ₦500,000
D. ₦400,000
Question 3
A company has a warehouse with a capacity of 10,000 units. The current inventory level is 8,000 units. If the company receives a shipment of 2,000 units, what is the new inventory level?
A. 6,000 units
B. 8,000 units
C. 10,000 units
D. 12,000 units
Question 4
A firm's revenue function is given by R = 2pQ. If the price (p) is 10 units and the quantity sold (Q) is 5 units, what is the total revenue?
A. 50
B. 100
C. 200
D. 500
Question 5
In a perfectly competitive market, the law of diminishing marginal utility is most relevant to the production of which of the following goods?
A. Giffen Goods
B. Normal Goods
C. Inferior Goods
D. Superior Goods
Question 6
A company specializes in the production of luxury cars. It has two production lines: Line A and Line B. Line A produces 60% of the total output, while Line B produces 40%. If the profit per unit for Line A is ₦150,000 and for Line B is ₦120,000, what is the total profit for the company if it produces 100 units?
A. ₦12,000,000
B. ₦10,000,000
C. ₦15,000,000
D. ₦18,000,000
Question 7
A company has a production function given by Q = 2L + 3K, where Q is the quantity produced, L is the number of labor hours, and K is the number of capital units. If the company has 10 labor hours and 5 capital units, what is the quantity produced?
A. 20
B. 25
C. 30
D. 35
Question 8
A company's supply chain involves transporting goods from a factory to a warehouse. This is an example of which of the following?
A. Transportation
B. Inventory management
C. Warehousing
D. Logistics
Question 9
A consumer's budget constraint is given by 2x + 3y = 12. If the consumer's income increases by 20% and the price of good x increases by 10%, what is the new budget constraint?
A. 2x + 3y = 14.4
B. 2x + 3y = 16.8
C. 2x + 3y = 18.2
D. 2x + 3y = 20.6
Question 10
A firm's production function is given by Q = 2L^0.5 + 3K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%
Question 11
A company has the following financial statements for the year:
A. ₦1,500,000
B. ₦1,200,000
C. ₦1,800,000
D. ₦2,000,000
Question 12
A firm is considering two investment opportunities, A and B. Opportunity A has a 10% chance of generating ₦1,000,000 and a 90% chance of generating ₦0. What is the expected value of Opportunity A?
A. ₦100,000
B. ₦0
C. ₦90,000
D. ₦10,000
Question 13
A consumer has a budget of ₦1000 and faces the following prices: Good A = ₦200, Good B = ₦300, and Good C = ₦400. If the consumer allocates 40% of their budget to Good A, 30% to Good B, and 30% to Good C, what is the total quantity of each good purchased?
A. Good A = 2 units, Good B = 1 unit, Good C = 1 unit
B. Good A = 3 units, Good B = 2 units, Good C = 2 units
C. Good A = 4 units, Good B = 3 units, Good C = 3 units
D. Good A = 5 units, Good B = 4 units, Good C = 4 units
Question 14
A company's financial statements show that its total revenue is ₦1,500,000 and its total cost is ₦1,200,000. What is the company's profit?
A. ₦300,000
B. ₦200,000
C. ₦100,000
D. ₦50,000
Question 15
A company has the following inventory levels at the end of each quarter:
A. ₦1,500,000
B. ₦1,200,000
C. ₦1,800,000
D. ₦2,000,000

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