POST UTME BELLS UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A life insurance policy has a premium of ₦50,000 per year and a death benefit of ₦1,000,000. If the policyholder dies after 5 years, what is the total amount paid to the beneficiary?
A. ₦250000
B. ₦500000
C. ₦750000
D. ₦1000000
Question 2
A company's production function is given by Q = 2L^0.5K^0.5. If the company wants to produce 16 units of output, and the wage rate is ₦100 per unit of labor, and the rental rate is ₦200 per unit of capital, what is the optimal level of labor and capital?
A. L = 4, K = 4
B. L = 8, K = 2
C. L = 16, K = 1
D. L = 32, K = 0.5
Question 3
A firm produces two goods, X and Y, using two inputs, labor and capital. The production function for good X is given by QX = 2L^0.5K^0.5, where QX is the quantity of good X produced, L is the amount of labor used, and K is the amount of capital used. If the firm uses 100 units of labor and 200 units of capital, how much of good X will it produce?
A. 100
B. 200
C. 300
D. 400
Question 4
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity in this market?
A. ₦100, 100 units
B. ₦120, 80 units
C. ₦150, 60 units
D. ₦180, 40 units
Question 5
The concept of 'just-in-time' production is closely related to which of the following production philosophies?
A. Mass Production
B. Just-in-Time Production
C. Total Quality Management
D. Lean Production
Question 6
A company's financial statements are audited annually to ensure compliance with accounting standards. What is the primary purpose of this audit?
A. To ensure the company's financial statements are accurate and reliable
B. To identify areas of inefficiency in the company's operations
C. To verify the company's compliance with tax laws
D. To assess the company's risk management practices
Question 7
A marketing strategy that focuses on creating a unique selling proposition (USP) is known as
A. Product Differentiation
B. Market Segmentation
C. Target Marketing
D. Positioning
Question 8
A bank's return on assets (ROA) is a measure of its ability to generate earnings from its assets. If a bank has an ROA of 0.12 and its total assets are ₦120 billion, what is its net income?
A. ₦14.4 billion
B. ₦14.2 billion
C. ₦14.6 billion
D. ₦14.8 billion
Question 9
A company has a portfolio of stocks with a beta of 1.2. If the market return is 8% and the risk-free rate is 4%, what is the expected return on the portfolio?
A. 10%
B. 11%
C. 12%
D. 13%
Question 10
A business owner wants to minimize the risk of losses due to natural disasters. What is the primary strategy for achieving this goal?
A. Insurance coverage
B. Diversification of investments
C. Risk management planning
D. Emergency funding
Question 11
A company is planning to launch a new product. What is the primary goal of market research in this situation?
A. To identify target market
B. To determine pricing strategy
C. To develop marketing mix
D. To evaluate product features
Question 12
In a sole trade business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Tax benefits
C. Easy setup and management
D. Flexibility in decision-making
Question 13
A company's articles of association may be amended by a
A. Simple Majority
B. Two-Thirds Majority
C. Special Resolution
D. Ordinary Resolution
Question 14
A company is considering purchasing an insurance policy to mitigate risks. What is the primary purpose of insurance?
A. To increase revenue
B. To reduce costs
C. To transfer risk
D. To improve brand image
Question 15
A sole trader has a business that sells goods worth ₦750,000. If the trader's profit margin is 20% and the business has a tax rate of 15%, what is the trader's net profit?
A. ₦90,000
B. ₦92,500
C. ₦95,000
D. ₦97,500

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