POST UTME AL-HIKMAH UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's cost function is given by C(x) = 50x + 100. What is the firm's average cost function?
A. ( 50 + rac{100}{x} )
B. ( 50 - rac{100}{x} )
C. ( 50 + rac{100}{x^2} )
D. ( 50 - rac{100}{x^2} )
Question 2
A company has a 'Trade Discount' of 15% on its products. If the 'List Price' of a product is ₦1,500, what is the 'Selling Price' after the 'Trade Discount'?
A. ₦1,275
B. ₦1,350
C. ₦1,425
D. ₦1,500
Question 3
A company uses the 'Matching Principle' to account for its expenses. If the company has a 'Salaries Expense' of ₦200,000 and a 'Salaries Payable' of ₦150,000, what is the 'Accrued Salaries'?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 4
A company has a 'Trade Receivables' turnover of 8 times per year. If the 'Trade Receivables' are ₦500,000, what is the 'Average Collection Period'?
A. 62.5 days
B. 75 days
C. 87.5 days
D. 100 days
Question 5
A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300 respectively. What is the consumer's optimal bundle of goods?
A. 1 unit of A and 3 units of B
B. 2 units of A and 2 units of B
C. 3 units of A and 1 unit of B
D. 4 units of A and 0 units of B
Question 6
A business has a 'Current Ratio' of 2:1 and a 'Quick Ratio' of 1:1. If the 'Current Assets' are ₦1,000,000 and the 'Current Liabilities' are ₦500,000, what is the 'Quick Assets'?
A. ₦500,000
B. ₦750,000
C. ₦1,000,000
D. ₦1,250,000
Question 7
A company's production function is given by Q = 2L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, what is the optimal combination of L and K that minimizes the cost of production?
A. L = 100, K = 50
B. L = 50, K = 100
C. L = 100, K = 100
D. L = 50, K = 50
Question 8
A firm's cost function is given by C(x) = 50x + 100. What is the firm's average cost function?
A. ( 50 + rac{100}{x} )
B. ( 50 - rac{100}{x} )
C. ( 50 + rac{100}{x^2} )
D. ( 50 - rac{100}{x^2} )
Question 9
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?
A. 24
B. 36
C. 48
D. 64
Question 10
The concept of 'Gross Profit' in a business is calculated as the difference between the 'Selling Price' and the 'Cost Price'. However, if the 'Selling Price' is not known, how can the 'Gross Profit' be determined?
A. By using the 'Average Selling Price' method.
B. By using the 'Marginal Costing' method.
C. By using the 'Absorption Costing' method.
D. By using the 'High-Low Method' of inventory valuation.
Question 11
A firm's cost function is given by C = 100 + 2L + 3K. If the firm's current labor and capital inputs are L = 20 and K = 15, respectively, what is the firm's current total cost?
A. 500
B. 550
C. 600
D. 650
Question 12
A consumer protection agency has received a complaint about a company's advertising practices. Which of the following is a possible action the agency can take?
A. Issue a warning to the company
B. Impose a fine on the company
C. Order the company to stop advertising
D. Refer the complaint to the police
Question 13
A company's marketing strategy involves creating a sense of exclusivity among its customers. Which of the following is a characteristic of this strategy?
A. Scarcity
B. Perceived value
C. Limited-time offer
D. Product differentiation
Question 14
In a sole trade business, the owner's personal and business finances are not separate. Which of the following is a characteristic of a sole trade business?
A. Separate personal and business finances
B. No separate business name
C. Owner has unlimited liability
D. Owner has limited liability
Question 15
A firm's revenue function is given by R(x) = 100x - 2x^2. What is the marginal revenue function?
A. ( 100 - 4x )
B. ( 100 + 4x )
C. ( 100x - 2x^2 )
D. ( 100x + 2x^2 )

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