POST UTME BABCOCK UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company imports goods worth ₦5,000,000 and pays a customs duty of 5%. What is the amount of customs duty paid?
A. ₦250,000
B. ₦250,000
C. ₦250,000
D. ₦250,000
Question 2
A person purchases a life insurance policy with a premium of ₦50,000 per year. The policy pays a benefit of ₦1,000,000 in the event of the policyholder's death. What is the probability that the policyholder will die within the next 10 years?
A. 10%
B. 15%
C. 20%
D. 25%
Question 3
A firm has two production plants, A and B. Plant A produces 60% of the total output, while Plant B produces 40%. If the total output is 10,000 units, how many units are produced by Plant B?
A. 4000
B. 5000
C. 6000
D. 7000
Question 4
A bank has a reserve requirement of 20% and a cash reserve of ₦1,000,000. What is the maximum amount of loans the bank can make?
A. ₦4000000
B. ₦5000000
C. ₦6000000
D. ₦7000000
Question 5
A firm is considering the introduction of a new product line. The product requires a significant investment in production facilities and equipment. However, the company believes that the product will generate a high profit margin. Which of the following is the most appropriate decision-making criterion for the company?
A. Net present value (NPV)
B. Internal rate of return (IRR)
C. Payback period
D. Return on investment (ROI)
Question 6
A company is exporting goods to a foreign country. What is the primary consideration for the company?
A. Compliance with local laws and regulations
B. Compliance with international trade agreements
C. Compliance with customs regulations
D. Compliance with tax laws
Question 7
A firm is considering two different production technologies: a traditional technology that produces 100 units of output per hour of labor and a modern technology that produces 150 units of output per hour of labor. The firm has 200 hours of labor available per week and wants to maximize its output. What is the firm's optimal choice of technology?
A. Traditional technology
B. Modern technology
C. Both technologies
D. Neither technology
Question 8
A firm's revenue is maximized when its
A. marginal revenue equals marginal cost
B. marginal revenue equals average revenue
C. marginal cost equals average cost
D. average revenue equals average cost
Question 9
A company has a warehouse with a capacity of 10,000 units. The company receives a shipment of 5,000 units. What is the new capacity of the warehouse?
A. 5,000 units
B. 10,000 units
C. 15,000 units
D. 20,000 units
Question 10
A firm has two production plants, A and B. Plant A produces 60% of the total output, while Plant B produces 40%. If the total output is 10,000 units, how many units are produced by Plant B?
A. 4000
B. 5000
C. 6000
D. 7000
Question 11
A company is considering the introduction of a new product line. The product requires a significant investment in production facilities and equipment. However, the company believes that the product will generate a high profit margin. Which of the following is the most appropriate decision-making criterion for the company?
A. Net present value (NPV)
B. Internal rate of return (IRR)
C. Payback period
D. Return on investment (ROI)
Question 12
A life insurance policy pays a lump sum to the beneficiary upon the policyholder's death. What is the primary purpose of this type of insurance?
A. To provide financial support during retirement
B. To cover funeral expenses
C. To pay off outstanding debts
D. To provide a lump sum to the beneficiary
Question 13
A consumer has an income of ₦100,000 and faces the following budget constraint: 2x + 3y = 100,000. The consumer's utility function is given by u(x, y) = 2√xy. Find the consumer's optimal consumption bundle.
A. x = 10,000, y = 20,000
B. x = 15,000, y = 25,000
C. x = 20,000, y = 30,000
D. x = 25,000, y = 35,000
Question 14
A business's introduction to commerce involves understanding the principles of supply and demand. What is the law of supply?
A. The quantity of a good that producers are willing and able to produce at a given price level
B. The price at which producers are willing to sell a good
C. The quantity of a good that consumers are willing and able to buy at a given price level
D. The price at which consumers are willing to buy a good
Question 15
A company has a warehouse with a capacity of 10,000 units. If the current stock level is 8,000 units and the daily demand is 200 units, what is the minimum number of units that should be ordered to meet the demand for the next 10 days?
A. 8000
B. 10000
C. 12000
D. 14000

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