POST UTME AAUA 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm has a profit function given by π = 2Q - 3L - 2K, where π is the profit, Q is the quantity sold, L is the number of labor hours, and K is the amount of capital. If the firm wants to maximize its profit, how many labor hours and capital units should it use?
A. L = 1, K = 1
B. L = 2, K = 2
C. L = 3, K = 3
D. L = 4, K = 4
Question 2
A company's 'Break-Even Point' is the point at which its total revenue equals its total cost. What is the formula for calculating the break-even point?
A. ( ext{BEQ} = rac{ ext{FC}}{ ext{SP} - ext{VC}} )
B. ( ext{BEQ} = rac{ ext{FC}}{ ext{SP} + ext{VC}} )
C. ( ext{BEQ} = rac{ ext{FC}}{ ext{SP} - ext{FC}} )
D. ( ext{BEQ} = rac{ ext{FC}}{ ext{SP} + ext{FC}} )
Question 3
A bank is a financial institution that provides financial services to its customers. What is the main function of a bank?
A. To provide loans to customers
B. To accept deposits from customers
C. To provide investment advice to customers
D. To manage the money supply in the economy
Question 4
A company is considering exporting its products to a foreign market. What is the primary advantage of exporting?
A. Increased market share
B. Reduced competition
C. Access to new markets and customers
D. Lower production costs
Question 5
A company is registered under the Companies and Allied Matters Act 2020. Which of the following is a characteristic of a company?
A. Limited liability
B. Unlimited liability
C. Separate legal entity
D. No partnership
Question 6
A consumer protection agency receives a complaint from a customer who was sold a defective product. The agency's investigation reveals that the product was sold with a 2-year warranty. If the customer purchased the product 18 months ago, is the customer entitled to a replacement or a refund?
A. Yes, the customer is entitled to a replacement.
B. Yes, the customer is entitled to a refund.
C. No, the customer is not entitled to a replacement or a refund.
D. The customer's entitlement depends on the terms of the warranty.
Question 7
A company has a revenue function given by R = 2Q^2, where R is the total revenue and Q is the quantity sold. If the company wants to maximize its revenue, how many units should it sell?
A. Q = 1
B. Q = 2
C. Q = 3
D. Q = 4
Question 8
A firm's profit is given by the formula P = 2x^2 + 5x - 3, where x is the number of units sold. If the firm sells 5 units, what is its profit?
A. ₦13
B. ₦15
C. ₦17
D. ₦19
Question 9
A company has a policy of paying its employees a 10% bonus on their annual salaries. If an employee's annual salary is ₦1,200,000, what is the total amount paid to the employee, including the bonus?
A. ₦1,320,000
B. ₦1,320,000
C. ₦1,320,000
D. ₦1,320,000
Question 10
A bank offers a 5-year fixed deposit account with an interest rate of 12% per annum compounded annually. If a customer deposits ₦100,000 at the beginning of the first year, how much will the customer have at the end of the fifth year?
A. ₦163,922
B. ₦164,000
C. ₦164,081
D. ₦164,163
Question 11
A sole trader's business is registered under the Companies and Allied Matters Act 2020. Which of the following is a characteristic of a sole trader?
A. Limited liability
B. Unlimited liability
C. Separate legal entity
D. No partnership
Question 12
A company has a production function given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital. If the company wants to produce 100 units of output, how many labor hours and capital units should it use?
A. L = 100, K = 100
B. L = 100, K = 400
C. L = 400, K = 100
D. L = 400, K = 400
Question 13
A consumer purchases a product for ₦5,000. The product has a warranty period of 2 years. If the consumer returns the product after 1 year, what is the amount of money the consumer is entitled to receive?
A. ₦2,500
B. ₦3,000
C. ₦3,500
D. ₦4,000
Question 14
A company is registered under the Companies and Allied Matters Act 2020. Which of the following is a characteristic of a company?
A. Limited liability
B. Unlimited liability
C. Separate legal entity
D. No partnership
Question 15
A warehouse's inventory turnover ratio is calculated as follows: Cost of Goods Sold / Average Inventory. What is the numerator in this ratio?
A. Cost of Goods Sold
B. Average Inventory
C. Total Assets
D. Total Liabilities

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: