POST UTME BOWEN UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering expanding its production capacity. The firm's production function is given by ( Q = 2L^0.5K^{0.25} ), where Q is the quantity produced, L is the labor input, and K is the capital input. The firm has 100 units of labor and 150 units of capital. What is the marginal product of labor?
A. 1.5
B. 2.5
C. 3.5
D. 4.5
Question 2
A company is considering the introduction of a new insurance product. The product has a high potential for success, but it also carries a high level of risk. What type of insurance product is this?
A. A high-risk insurance product
B. A low-risk insurance product
C. A high-potential insurance product
D. A low-potential insurance product
Question 3
A sole trader's business is considered a separate legal entity from its owner. Discuss the implications of this separation on the owner's personal liability.
A. The owner's personal assets are protected from business debts.
B. The owner's personal assets are at risk of being seized to settle business debts.
C. The business is responsible for the owner's personal debts.
D. The owner's personal debts are responsible for the business's liabilities.
Question 4
A company's transport manager needs to determine the most cost-effective mode of transportation for a shipment of goods. The company has three options: road, rail, and sea. The costs of each mode are as follows: road = ₦10,000, rail = ₦8,000, and sea = ₦12,000. However, the company also needs to consider the time taken for each mode: road = 3 days, rail = 5 days, and sea = 7 days. Which mode of transportation is the most cost-effective?
A. Road
B. Rail
C. Sea
D. Cannot be determined with the given information
Question 5
A bank's reserve requirement is 10%. If the bank has a cash reserve of ₦100,000, what is the maximum amount it can lend to customers?
A. ₦900,000
B. ₦1,000,000
C. ₦1,100,000
D. ₦1,200,000
Question 6
The diagram below represents a production possibility frontier. If the economy is currently at point A, which of the following is a consequence of a shift to point B?
A. An increase in the production of both goods
B. A decrease in the production of both goods
C. An increase in the production of good X and a decrease in the production of good Y
D. A decrease in the production of good X and an increase in the production of good Y
Question 7
A company has a 20% increase in sales from last year. If the company's sales last year were ₦1,000,000, what is the company's sales for this year?
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,200,000
D. ₦1,000,000
Question 8
A firm's revenue function is given by the equation R = 2Q - 3, where R is the total revenue and Q is the quantity produced. If the firm produces 20 units, what is the total revenue?
A. ₦40
B. ₦50
C. ₦60
D. ₦70
Question 9
A company is sued for violating the Consumer Protection Act. The company's defense is that the consumer did not read the fine print on the contract. However, the consumer claims that the company failed to provide adequate disclosure of the terms and conditions. Which of the following is the most likely outcome of this case?
A. The company is liable for damages.
B. The consumer is liable for damages.
C. The case is dismissed.
D. The company is not liable for damages.
Question 10
A company has a 10% dividend yield on its shares. If the company's share price is ₦100, what is the dividend per share?
A. ₦10
B. ₦5
C. ₦15
D. ₦20
Question 11
A company is considering the introduction of a new production process. The process has a high potential for efficiency, but it also carries a high level of risk. What type of production process is this?
A. A high-efficiency production process
B. A low-efficiency production process
C. A high-risk production process
D. A low-risk production process
Question 12
A bank is considering the introduction of a new loan product. The product has a high interest rate, but it also has a low risk of default. What type of loan product is this?
A. A high-risk loan product
B. A low-risk loan product
C. A high-interest loan product
D. A low-interest loan product
Question 13
A company's insurance policy covers losses due to fire, theft, and natural disasters. The policy has a deductible of ₦50,000 and a premium of ₦200,000 per year. If the company suffers a loss of ₦150,000 due to fire, how much will the insurance company pay?
A. ₦100,000
B. ₦50,000
C. ₦0
D. ₦150,000
Question 14
A company's articles of association state that a minimum of 50% of the shares must be held by the public. What implications does this have on the company's ability to raise capital?
A. The company can raise capital more easily due to the public's involvement.
B. The company's ability to raise capital is restricted due to the public's involvement.
C. The company's ability to raise capital is unaffected by the public's involvement.
D. The company's ability to raise capital is increased due to the public's involvement.
Question 15
A company has a 10% dividend yield. If the company's share price is ₦100, what is the dividend payment per share?
A. ₦10
B. ₦20
C. ₦30
D. ₦40

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