POST UTME ACHIEVERS UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a warehouse with a capacity to store 500 units of products. If he has 300 units of products in stock and wants to order more, what is the minimum number of units he should order to maximize his storage capacity?
A. 100
B. 200
C. 300
D. 400
Question 2
A company has a capital structure consisting of 60% equity and 40% debt. If the company's cost of equity is 12% and the cost of debt is 6%, what is the company's weighted average cost of capital (WACC)?
A. 8%
B. 9%
C. 10%
D. 11%
Question 3
A company is considering investing in a new project that has a net present value (NPV) of ₦1,000,000. If the company's cost of capital is 10%, what is the present value of the project?
A. ₦900,000
B. ₦1,000,000
C. ₦1,100,000
D. ₦1,200,000
Question 4
A company has a warehouse with a capacity to store 200 units of products. If he has 150 units of products in stock and wants to order more, what is the minimum number of units he should order to maximize his storage capacity?
A. 50
B. 100
C. 150
D. 200
Question 5
A firm specializes in producing a single product, and its production function is given by the equation ( Q = 100L^0.5K^0.25 ), where Q is the quantity produced, L is labor, and K is capital. If the firm's current labor and capital inputs are 100 units and 400 units, respectively, what is the marginal product of labor?
A. 50
B. 100
C. 200
D. 250
Question 6
A sole trader's business is considered a separate legal entity from its owner. Discuss the implications of this separation on the owner's personal liability.
A. The owner's personal assets are protected from business debts.
B. The owner's personal assets are liable for business debts.
C. The business is liable for the owner's personal debts.
D. The owner's personal debts are not affected by the business.
Question 7
A company is considering investing in a new project that has a net present value (NPV) of ₦1,000,000. If the company's cost of capital is 10%, what is the present value of the project?
A. ₦900,000
B. ₦1,000,000
C. ₦1,100,000
D. ₦1,200,000
Question 8
A company's marketing strategy involves creating a new product line that caters to a specific demographic. The product line is designed to appeal to the 'green' consumer, who prioritizes environmental sustainability. Which of the following marketing mix elements is most relevant to this strategy?
A. Product
B. Price
C. Promotion
D. Place
Question 9
A company is considering using a total quality management (TQM) approach to improve its quality. What is the primary goal of TQM?
A. To reduce costs
B. To improve quality
C. To increase productivity
D. To reduce lead times
Question 10
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. Which of the following is a correct example of comparative advantage?
A. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 100 units of good Y.
B. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 50 units of good Y.
C. Country A produces 100 units of good X and 100 units of good Y, while Country B produces 50 units of good X and 50 units of good Y.
D. Country A produces 50 units of good X and 100 units of good Y, while Country B produces 100 units of good X and 50 units of good Y.
Question 11
A firm is considering entering a new market. The market research indicates that the demand for the product is price-elastic. What is the implication of this for the firm's pricing strategy?
A. The firm should set a high price to maximize profits.
B. The firm should set a low price to increase market share.
C. The firm should use a penetration pricing strategy.
D. The firm should use a skimming pricing strategy.
Question 12
A company has a policy of paying its employees a fixed salary of ₦50,000 per month, plus a bonus of 10% of their monthly sales. If an employee's monthly sales are ₦200,000, what is their total monthly income?
A. ₦60,000
B. ₦65,000
C. ₦70,000
D. ₦75,000
Question 13
A company uses a marketing mix of 4P's (Product, Price, Place, Promotion) to promote its product. Which of the following is NOT a characteristic of the Product element?
A. Quality
B. Design
C. Packaging
D. Warranty
Question 14
A company has two production facilities, A and B, with the following production functions: ( Q_A = 100L_A^0.5K_A^0.25 ) and ( Q_B = 200L_B^0.5K_B^0.25 ). If the firm's current labor and capital inputs for facility A are 100 units and 400 units, respectively, and for facility B are 50 units and 200 units, respectively, what is the marginal product of capital for facility B?
A. 12.5
B. 25
C. 50
D. 100
Question 15
A firm has a production function given by the equation ( Q = 100L^0.5K^0.25 ), where Q is the quantity produced, L is labor, and K is capital. If the firm's current labor and capital inputs are 100 units and 400 units, respectively, and the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the total cost of production?
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000

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: