POST UTME BABCOCK UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's insurance policy can be considered comprehensive if it covers all types of risks, including liability and property damage. True or False?
A. True
B. False
C. Depends on the policy's terms
D. Not applicable
Question 2
A company has a warehouse with a capacity of 10,000 units. The current stock level is 5,000 units, and the reorder point is 8,000 units. If the lead time is 5 days, and the demand rate is 1,000 units per day, what is the probability of a stockout?
A. 0.2
B. 0.3
C. 0.4
D. 0.5
Question 3
A firm's demand function is given by P = 100 - 2Q, where P is the price and Q is the quantity demanded. If the firm's marginal revenue function is MR = 200 - 4Q, what is the firm's optimal quantity?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 4
A bank's reserve requirement is the minimum percentage of deposits that it must hold in reserve, rather than lending out. This is typically set by the
A. central bank
B. commercial bank
C. government
D. stock exchange
Question 5
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 6
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity of a commodity in such a market?
A. ₦100, 100 units
B. ₦120, 80 units
C. ₦150, 60 units
D. ₦200, 40 units
Question 7
A transport company uses a fleet of 10 trucks to deliver goods. If each truck has a capacity of 5 tons, and the company delivers 50 tons of goods in a day, what is the total number of trips made by the trucks?
A. 10
B. 15
C. 20
D. 25
Question 8
A sole trader's business is considered a separate legal entity from its owner. True or False?
A. True
B. False
C. Depends on the jurisdiction
D. Not applicable
Question 9
A bank offers a 5-year fixed deposit with an interest rate of 8% per annum compounded annually. If the principal amount is ₦100,000, what is the future value of the investment?
A. ₦163,922.58
B. ₦164,922.58
C. ₦165,922.58
D. ₦166,922.58
Question 10
A warehouse has a storage capacity of 10,000 units. If 5,000 units are already stored, what is the remaining storage capacity?
A. 5,000 units
B. 10,000 units
C. 15,000 units
D. 20,000 units
Question 11
A company's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company wants to produce 100 units of output, and the wage rate is ₦100 per unit of labor, and the rental rate of capital is ₦200 per unit of capital, how much should the company hire in terms of labor and capital?
A. L = 10 units, K = 20 units
B. L = 20 units, K = 10 units
C. L = 25 units, K = 5 units
D. L = 5 units, K = 25 units
Question 12
A company's insurance policy has a deductible of ₦10,000. If the company has a claim of ₦50,000, how much of the claim will the insurance company pay?
A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000
Question 13
A company exports goods worth ₦500,000 to a foreign country. If the exchange rate is 1 USD = ₦200, what is the value of the export in USD?
A. 2,500
B. 2,500.00
C. 2,500.00 USD
D. 2,500.00 USD
Question 14
A consumer's willingness to pay for a product is influenced by
A. the product's price
B. the product's quality
C. the consumer's income
D. all of the above
Question 15
A company's stock control system uses a first-in-first-out (FIFO) inventory method. If the company has 100 units of a product with a cost of ₦50 each, and 20 units are sold, what is the total cost of the units sold?
A. ₦1,000
B. ₦1,200
C. ₦1,400
D. ₦1,600

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