POST UTME AL-HIKMAH UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering the introduction of a new product. The product's demand is expected to be 1000 units in the first year, increasing by 20% each year for the next 5 years. If the company wants to maximize its profit, which of the following production levels would be most appropriate?
A. 1000 units
B. 1200 units
C. 1500 units
D. 2000 units
Question 2
A company has a 10% chance of experiencing a loss due to a natural disaster. If the company's assets are valued at ₦1,000,000, what is the expected value of the loss?
A. ₦100,000
B. ₦200,000
C. ₦500,000
D. ₦1,000,000
Question 3
A company is exporting goods to a foreign country. Which of the following is a key consideration in the export process?
A. Compliance with import regulations
B. Compliance with export regulations
C. Compliance with customs regulations
D. All of the above
Question 4
A firm's financial statements show that its total assets have increased by 25% over the past year, while its total liabilities have increased by 15%. If the firm's equity has increased by 10%, what is the ratio of its total assets to total liabilities?
A. 1.5
B. 1.75
C. 2.0
D. 2.25
Question 5
A company's sole trader is considering the introduction of a new product line. The product line requires an initial investment of ₦1,500,000 and is expected to generate an annual profit of ₦750,000. If the company's cost of capital is 12% per annum, what is the expected rate of return on investment (ROI) for the new product line?
A. 15%
B. 18%
C. 20%
D. 22%
Question 6
A bank's cash reserve ratio is 20%. If the bank has a total deposit of ₦10,000,000, how much cash must it reserve?
A. ₦2,000,000
B. ₦1,500,000
C. ₦2,500,000
D. ₦1,000,000
Question 7
A warehouse has a storage capacity of 10,000 units. If it currently has 8,000 units stored, what is the maximum number of units it can store?
A. 2,000
B. 5,000
C. 8,000
D. 10,000
Question 8
A company is considering the introduction of a new product. The product's demand is expected to be 1000 units in the first year, increasing by 20% each year for the next 5 years. If the company wants to maximize its profit, which of the following production levels would be most appropriate?
A. 1000 units
B. 1200 units
C. 1500 units
D. 2000 units
Question 9
A firm's revenue function is given by R(Q) = 100Q. If the firm sells Q = 10 units, what is the firm's total revenue?
A. ₦1000
B. ₦2000
C. ₦3000
D. ₦4000
Question 10
A company is considering the use of a just-in-time inventory system. Which of the following is a key benefit of this system?
A. Reduced inventory costs
B. Improved product quality
C. Increased flexibility in production
D. All of the above
Question 11
The marketing mix of a product can be described as a combination of which of the following?
A. Product, Price, Place, Promotion
B. Product, Price, Place, Packaging
C. Product, Price, Place, People
D. Product, Price, Place, Process
Question 12
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. increase
B. decrease
C. remain constant
D. become elastic
Question 13
A company is registered under the Companies and Allied Matters Act 2020. What is the minimum number of directors required for a private company?
A. 1
B. 2
C. 3
D. 4
Question 14
A firm is considering two different production processes for its new product. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit. Process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the selling price of the product is ₦100 per unit, which process would result in the highest profit?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 15
A company's stock is valued at ₦100 per share. If the company issues 10,000 shares, how much will it raise?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦1,200,000

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: