POST UTME AFE BABALOLA UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's cost function is given by C = 100 + 2Q, where C is the total cost and Q is the quantity produced. If the firm produces 50 units, what is its total cost?
A. ₦250
B. ₦300
C. ₦350
D. ₦400
Question 2
A sole trader is a type of business ownership where one person owns and operates the business. What are the primary advantages of being a sole trader?
A. Limited liability
B. Easy to set up
C. Flexibility in decision-making
D. Access to external funding
Question 3
A company uses the just-in-time (JIT) inventory system to manage its stock levels. What is the primary advantage of this system?
A. Reduced inventory costs
B. Improved customer service
C. Increased production efficiency
D. Enhanced supply chain visibility
Question 4
A consumer protection law requires that all products sold in a particular market must have a minimum warranty period of 2 years. If a company sells a product with a warranty period of 1 year, what is the company's liability under the consumer protection law?
A. The company is liable for any damages or losses incurred by the consumer.
B. The company is not liable for any damages or losses incurred by the consumer.
C. The company is liable for any damages or losses incurred by the consumer, but only for the first year.
D. The company is liable for any damages or losses incurred by the consumer, but only for the remaining warranty period.
Question 5
A bank's reserve requirement is 10%. If the bank has ₦100,000 in deposits, how much must it hold in reserve?
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 6
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company wants to increase its production by 20% while keeping labor input constant, what percentage increase in capital input is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦100 per unit, while the price of capital is ₦200 per unit, what is the minimum cost of production?
A. ₦800
B. ₦1200
C. ₦1600
D. ₦2400
Question 8
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the marginal product of labor?
A. 1
B. 2
C. 3
D. 4
Question 9
A company has a policy of paying its employees a fixed salary plus a bonus based on the company's profits. This type of compensation is an example of a _______ contract.
A. Fixed
B. Variable
C. Frictional
D. Opportunity
Question 10
A sole trader is considering expanding its business by opening a new branch. The new branch will require an initial investment of ₦1,000,000 and will generate additional revenue of ₦500,000 per year. If the sole trader's current profit is ₦200,000 per year, what is the minimum required rate of return on the investment to justify the expansion?
A. 10%
B. 15%
C. 20%
D. 25%
Question 11
A bank's reserve requirement is 20%. If the bank has ₦100,000 in deposits and wants to increase its lending capacity by 50%, what is the maximum amount it can lend?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 12
A company has two production plants, A and B. Plant A produces 100 units of a product per hour, while plant B produces 200 units per hour. If the company wants to produce a total of 500 units per hour, how many hours should each plant operate?
A. Plant A: 2 hours, Plant B: 3 hours
B. Plant A: 3 hours, Plant B: 2 hours
C. Plant A: 4 hours, Plant B: 1 hour
D. Plant A: 1 hour, Plant B: 4 hours
Question 13
A warehouse's inventory turnover ratio is 6 times per year. If the beginning inventory is ₦150,000, what is the total cost of goods sold for the year?
A. ₦900,000
B. ₦1,050,000
C. ₦1,200,000
D. ₦1,350,000
Question 14
A company has a portfolio of assets that includes stocks, bonds, and real estate. The company's investment manager wants to diversify the portfolio by adding a new asset class. Which of the following asset classes would be a good addition to the portfolio?
A. Commodities
B. Currencies
C. Mutual Funds
D. Private Equity
Question 15
A firm is considering investing in a new project that has a net present value (NPV) of 100,000. The firm's cost of capital is 10%. What is the internal rate of return (IRR) of the project?
A. 10%
B. 12%
C. 15%
D. 18%

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: