POST UTME CHRISTOPHER UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm'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 firm wants to increase its output by 20% while keeping labor input constant, what percentage increase in capital input is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 2
A firm's revenue function is given by R = 2Q^2. If the firm's output is 3, calculate the total revenue.
A. 18
B. 20
C. 22
D. 24
Question 3
A bank's reserve requirement is the minimum percentage of deposits that must be held in reserve. What is the name of the ratio that represents the ratio of reserves to deposits?
A. Reserve Requirement Ratio (RRR)
B. Cash Reserve Ratio (CRR)
C. Liquidity Ratio (LR)
D. Capital Adequacy Ratio (CAR)
Question 4
A marketing strategy that involves creating a unique selling proposition (USP) to differentiate a product from its competitors is known as?
A. Segmentation, Targeting, and Positioning (STP)
B. Product Life Cycle (PLC)
C. Marketing Mix (4Ps)
D. Unique Selling Proposition (USP)
Question 5
A company has two warehouses, A and B, with capacities of 1000 and 500 units respectively. Warehouse A has 800 units of stock, while Warehouse B has 200 units. If the company receives an order for 1200 units, which warehouse should it use to fulfill the order?
A. Warehouse A
B. Warehouse B
C. Both warehouses
D. Neither warehouse
Question 6
A firm's cost function is given by C = 2L + 3K. If the firm's labor and capital inputs are 2 and 4 respectively, calculate the total cost.
A. 10
B. 12
C. 14
D. 16
Question 7
A producer's production function is given by Q = 2L^0.5K^0.5. If the producer's labor and capital inputs are 4 and 9 respectively, calculate the output.
A. 6
B. 8
C. 10
D. 12
Question 8
A bank's primary function is to act as a
A. Central bank
B. Commercial bank
C. Investment bank
D. Development bank
Question 9
A company's articles of association may be amended to increase the authorized capital. However, this requires the approval of the shareholders. What is the name of this process?
A. Capital Reduction
B. Capital Increase
C. Share Buyback
D. Merger and Acquisition
Question 10
A business has two types of insurance policies: A and B. Policy A has a premium of ₦1000 and a deductible of ₦500. Policy B has a premium of ₦800 and a deductible of ₦200. If the business incurs a loss of ₦1200, which policy should it choose?
A. Policy A
B. Policy B
C. Both policies
D. Neither policy
Question 11
A company's sole trader is considering the purchase of a new warehouse. The warehouse costs ₦5 million and has a 5-year lifespan. The company expects to use the warehouse for 3 years and then sell it for ₦1.5 million. The company's cost of capital is 10% per annum. Calculate the present value of the warehouse using the net present value (NPV) method.
A. ₦3,750,000
B. ₦4,250,000
C. ₦4,750,000
D. ₦5,250,000
Question 12
A company exports 500 units of goods to a foreign country. The cost of transportation is ₦200 per unit, and the company earns a profit of ₦300 per unit. If the exchange rate is 1 USD = 500 NGN, what is the total profit in USD?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 13
A company's marketing strategy involves a 20% increase in advertising expenditure. If the initial advertising expenditure is ₦1.2 million, what is the new advertising expenditure?
A. ₦1,440,000
B. ₦1,440,000
C. ₦1,440,000
D. ₦1,440,000
Question 14
A sole trader has a business that specializes in the production of textiles. The business has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit. If the business produces 1000 units, what is the total cost?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 15
A sole trader's business is considered a separate legal entity from its owner. However, in the event of a lawsuit, the owner's personal assets may be at risk. What is the name of this legal concept?
A. Piercing the Corporate Veil
B. Limited Liability
C. Separate Legal Entity
D. Joint and Several Liability

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