POST UTME AFE BABALOLA UNIVERSITY 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A _______ is a type of business organization that is owned and controlled by its members, who share the profits and losses.
A. partnership
B. limited liability company
C. sole trader
D. cooperative
Question 2
A commercial bank's primary function is to act as a _______ between savers and borrowers.
A. depository
B. discount
C. investment
D. intermediary
Question 3
The _______ of a sole trader is unlimited, meaning that the owner's personal assets are at risk in case of business failure.
A. liability
B. asset
C. equity
D. liabilities
Question 4
A firm has a warehouse with a capacity of 10,000 units. The firm's inventory policy is to maintain a safety stock of 20% of the average demand. If the average demand is 5,000 units per month, what is the maximum number of units that can be stored in the warehouse?
A. 8000
B. 9000
C. 10000
D. 12000
Question 5
A sole trader's business is registered under which of the following?
A. Partnership
B. Sole Proprietorship
C. Company
D. Cooperative
Question 6
A company's financial statements show a decrease in revenue and an increase in expenses. What is the likely effect on its liquidity ratio?
A. Increase
B. Decrease
C. No change
D. Uncertain
Question 7
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied of that good will also increase. However, this increase in quantity supplied is not due to an increase in the quantity of resources used, but rather due to an increase in the efficiency of the resources used. Which of the following best describes this phenomenon?
A. Increase in the quantity of resources used
B. Increase in the efficiency of the resources used
C. Decrease in the price of the good
D. Increase in the demand for the good
Question 8
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If the company receives an order for 5,000 units, what is the minimum number of units that must be stored in the warehouse to fulfill the order?
A. 3,500
B. 4,000
C. 4,500
D. 5,000
Question 9
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If the company receives an order for 5,000 units, what is the minimum number of units that must be stored in the warehouse to fulfill the order?
A. 3,500
B. 4,000
C. 4,500
D. 5,000
Question 10
A firm is considering investing in a new project that has a net present value (NPV) of ₦100,000. If the firm's cost of capital is 10%, what is the present value of the project?
A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000
Question 11
A firm's production function is given by the equation Q = 2L^0.5 * K^0.5, where Q is output, L is labor, and K is capital. If the firm wants to produce 100 units of output, and it has 4 units of labor and 9 units of capital, what is the minimum amount of capital it needs to produce 100 units of output?
A. 3
B. 4
C. 5
D. 6
Question 12
A firm is considering two investment projects. Project A has a higher initial cost but generates higher returns over its lifespan. Project B has a lower initial cost but generates lower returns. Which project should the firm choose?
A. Project A
B. Project B
C. Both projects are equally good
D. Neither project is good
Question 13
A bank's risk management strategy involves the use of derivatives to hedge against interest rate risk. However, the bank's derivatives portfolio is heavily skewed towards interest rate swaps, which are known to be sensitive to changes in interest rates. What is the primary risk associated with this strategy?
A. Credit risk
B. Liquidity risk
C. Operational risk
D. Market risk
Question 14
A warehouse is storing 100 units of goods. The warehouse has a capacity of 200 units. If the warehouse is currently 50% full, what is the maximum number of units that can be added to the warehouse?
A. 50
B. 75
C. 100
D. 125
Question 15
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If the company receives an order for 5,000 units, what is the minimum number of units that must be stored in the warehouse to fulfill the order?
A. 3,500
B. 4,000
C. 4,500
D. 5,000

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