POST UTME AFE BABALOLA UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is the quantity produced, L is the number of labor hours, and H is the number of units of capital. If the firm wants to produce 100 units of output, and it has 16 labor hours available, how many units of capital should it hire?
A. 8
B. 16
C. 32
D. 64
Question 2
A company is considering the purchase of a new warehouse. The company's accountant has estimated the cost of the warehouse to be ₦1,500,000. However, the company's manager has estimated the cost to be ₦1,200,000. What is the most likely reason for the discrepancy in the estimates?
A. The accountant has overestimated the cost of the warehouse
B. The manager has underestimated the cost of the warehouse
C. The company's financial reports are inaccurate
D. The company's budget is insufficient
Question 3
A company has a share capital of ₦5 million, divided into 500,000 ordinary shares of ₦10 each. If the company issues 200,000 shares to the public, what is the amount of share capital raised?
A. ₦1 million
B. ₦2 million
C. ₦3 million
D. ₦4 million
Question 4
A firm's cost function is given by C(L,K) = 2L + 3K. If the firm's current output is 16 units and the wage rate is ₦100 per hour, what is the minimum amount of capital the firm must employ to minimize its cost?
A. ₦400
B. ₦500
C. ₦600
D. ₦800
Question 5
A consumer protection law requires businesses to provide a 30-day cooling-off period for customers to cancel their purchases. If a customer purchases a product on January 1st and wants to cancel it, what is the latest date they can cancel the purchase?
A. January 31st
B. February 1st
C. February 28th
D. March 1st
Question 6
A consumer has a utility function U(x,y) = 2x + 3y. If the prices of x and y are ₦5 and ₦3 respectively, and the consumer's income is ₦100, what is the optimal bundle of x and y?
A. (10, 10)
B. (15, 5)
C. (20, 0)
D. (0, 20)
Question 7
A sole trader's business is considered a partnership if it has one owner. True or False?
A. True
B. False
C. Depends on the jurisdiction
D. Not applicable
Question 8
A company's articles of association can be amended by a two-thirds majority vote of shareholders. True or False?
A. True
B. False
C. Depends on the company's constitution
D. Not applicable
Question 9
A company is considering two different marketing strategies: Strategy A, which involves a 10% increase in advertising expenditure, and Strategy B, which involves a 20% increase in sales force size. If the company's current advertising expenditure is ₦1,000,000 and its current sales force size is 100 people, which strategy would result in a higher increase in sales?
A. Strategy A
B. Strategy B
C. Both strategies would result in the same increase in sales
D. Neither strategy would result in an increase in sales
Question 10
A business has a liability of ₦1,000,000 and an asset of ₦2,000,000. If the business wants to pay off the liability, how much cash will it need to raise?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 11
In a perfectly competitive market, the demand curve for a firm's product is its
A. marginal revenue curve
B. marginal cost curve
C. average revenue curve
D. average cost curve
Question 12
A sole trader's business is considered a limited liability partnership if it has one owner. True or False?
A. True
B. False
C. Depends on the jurisdiction
D. Not applicable
Question 13
A company's memorandum of association can be amended by a simple majority vote of shareholders. True or False?
A. True
B. False
C. Depends on the company's constitution
D. Not applicable
Question 14
A consumer has purchased a product from a company, but the product has a defect. The consumer is seeking compensation from the company. What is the primary legal principle that the consumer is relying on?
A. The principle of caveat emptor
B. The principle of strict liability
C. The principle of negligence
D. The principle of breach of contract
Question 15
A sole trader's business is considered a limited liability partnership if it has two or more owners. True or False?
A. True
B. False
C. Depends on the jurisdiction
D. Not applicable

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