POST UTME CALEB UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the following data to calculate its risk exposure: Probability of loss = 0.05, Expected loss = ₦10,000. What is the risk premium?
A. ₦500
B. ₦1,000
C. ₦5,000
D. ₦10,000
Question 2
A consumer protection agency receives a complaint from a customer who was sold a defective product. The agency finds that the product was sold at a price higher than the recommended retail price. What is the agency's likely course of action?
A. Order the company to refund the customer's money
B. Order the company to replace the defective product
C. Order the company to pay compensation to the customer
D. Close the case as it is not a serious complaint
Question 3
A firm has a warehouse with a capacity of 500 units. The firm has 200 units of product X and 300 units of product Y. If the firm receives an order for 150 units of product X, what is the new capacity of the warehouse?
A. 350
B. 450
C. 500
D. 550
Question 4
A company has a sole trader business structure. What is the primary disadvantage of this structure?
A. Limited liability
B. Easy to set up
C. No need for formal meetings
D. Unlimited personal liability
Question 5
A sole trader, Mr. A, has a business income of ₦500,000 and expenses of ₦200,000. If he pays 25% tax on his business income, how much will he pay in tax?
A. ₦125,000
B. ₦150,000
C. ₦175,000
D. ₦200,000
Question 6
A firm has a warehouse with a capacity of 500 units. The firm has 300 units of product X and 200 units of product Y. If the firm receives an order for 150 units of product X, what is the new capacity of the warehouse?
A. 350
B. 450
C. 500
D. 550
Question 7
A company has two warehouses, A and B, with capacities of 1000 and 500 units, respectively. Warehouse A has 800 units of product X, while warehouse B has 200 units. If 300 units are to be transferred from warehouse A to warehouse B, what is the new capacity of warehouse A?
A. 1200
B. 900
C. 1000
D. 800
Question 8
In a just-in-time (JIT) inventory system, what is the primary goal of the warehouse manager?
A. To minimize inventory costs
B. To maximize storage capacity
C. To reduce lead times
D. To increase order quantities
Question 9
A consumer protection agency has received a complaint about a company that is selling a product with a misleading label. The label claims that the product is '100% natural' when in fact it contains 20% artificial ingredients. What is the legal consequence for the company?
A. The company will be fined ₦500,000
B. The company will be required to recall the product
C. The company will be sued for damages
D. The company will be allowed to continue selling the product
Question 10
A company has a warehouse with a capacity of 1000 units. The company has 500 units of product X and 300 units of product Y. If the company receives an order for 200 units of product X, what is the new capacity of the warehouse?
A. 800
B. 900
C. 1000
D. 1100
Question 11
A company's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If capital increases by 20% and labor remains constant, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 12
In a perfectly competitive market, if the demand for a product increases, what will happen to the equilibrium price and quantity?
A. Price will decrease and quantity will increase
B. Price will increase and quantity will decrease
C. Price will remain the same and quantity will increase
D. Price will decrease and quantity will decrease
Question 13
A company's cost of goods sold (COGS) is ₦1,000,000 and its selling price is ₦2,000,000. If it sells 5,000 units, what is its contribution margin?
A. ₦1,250,000
B. ₦1,500,000
C. ₦1,750,000
D. ₦2,000,000
Question 14
A company's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If labor increases by 20% and capital remains constant, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 15
A bank offers a 5-year fixed deposit account with a 10% interest rate. If you deposit ₦100,000, how much will you receive at the end of the 5-year period?
A. ₦162,887.50
B. ₦165,000
C. ₦170,000
D. ₦175,000

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