POST UTME BSU 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a capital structure consisting of 60% debt and 40% equity. What is the cost of capital for this company?
A. 6%
B. 8%
C. 10%
D. 12%
Question 2
A company's revenue function is given by R = 100Q - 2Q^2, where R is the revenue and Q is the quantity sold. If the company wants to maximize its revenue, what should be the optimal quantity sold?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 3
A bank has a reserve requirement of 20% and a cash reserve of ₦1,000,000. If the bank wants to increase its lending capacity by ₦500,000, what is the minimum amount of deposits it needs to attract?
A. ₦2,500,000
B. ₦3,000,000
C. ₦3,500,000
D. ₦4,000,000
Question 4
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm wants to increase its output by 20% while keeping labor input constant at 100 units, what should be the new capital input?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 5
A company has a fleet of 10 vehicles, each with an average fuel consumption of 10 liters per kilometer. If the company travels a total distance of 1,000 kilometers in a month, what is the total amount of fuel consumed?
A. 10,000 liters
B. 20,000 liters
C. 30,000 liters
D. 40,000 liters
Question 6
A company's financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS). What is the primary purpose of these financial statements?
A. To provide a true and fair view of the company's financial position
B. To provide a summary of the company's financial transactions
C. To provide a detailed analysis of the company's financial performance
D. To provide a comparison of the company's financial position with that of its competitors
Question 7
The term 'home trade' refers to
A. trade between two or more countries
B. trade within a country
C. trade between a country and a territory
D. trade between a country and a region
Question 8
A company's sole trader has a warehouse with a capacity to store 500 units of goods. If the warehouse is currently 75% full, how many units of goods can be added before it reaches its maximum capacity?
A. 375
B. 400
C. 425
D. 450
Question 9
A consumer protection agency has received a complaint from a customer who was sold a defective product. The product was sold for ₦10,000 and the customer is seeking a refund of ₦8,000. If the agency decides to award the customer a refund of ₦6,000, what is the percentage of the refund awarded?
A. 60%
B. 70%
C. 80%
D. 90%
Question 10
The concept of 'transportation' in commerce refers to
A. the movement of goods from one place to another
B. the storage of goods in a warehouse
C. the sale of goods to a customer
D. the purchase of goods from a supplier
Question 11
A company has a capital of ₦1,000,000, divided into 100,000 shares of ₦10 each. If the company issues 20,000 shares at a premium of ₦5 per share, what is the total amount received from the issue of shares?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 12
A company's cost function is given by C = 100 + 2L + 3K, where C is the total cost, L is the labor input, and K is the capital input. If the company wants to minimize its cost while keeping labor input constant at 50 units, what should be the optimal capital input?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 13
A producer of electronics has a production line that can produce 200 units of a product per hour. If the production line operates for 8 hours a day, what is the total number of units produced in a day?
A. 1600
B. 1800
C. 2000
D. 2200
Question 14
A consumer purchases a product with a recommended retail price of ₦5,000. The product is sold at a discount of 10% and a further 5% discount is applied to the discounted price. What is the final price paid by the consumer?
A. ₦4,250
B. ₦4,375
C. ₦4,500
D. ₦4,625
Question 15
A company is considering two different modes of transportation for its goods: road and rail. The cost of transporting goods by road is ₦150 per unit, while the cost of transporting goods by rail is ₦120 per unit. If the company expects to transport 500 units of goods, what is the total cost of transportation if the company uses a combination of both road and rail?
A. ₦75,000
B. ₦80,000
C. ₦85,000
D. ₦90,000

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