POST UTME COVENANT UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a production function given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor input, and K is the capital input. If the company wants to produce 100 units of output, how many units of labor should it hire?
A. 10 units of labor
B. 20 units of labor
C. 30 units of labor
D. 40 units of labor
Question 2
A company is considering the implementation of a just-in-time (JIT) inventory system. Which of the following is a key benefit of JIT?
A. Reduced inventory costs
B. Improved forecasting
C. Increased flexibility
D. Enhanced customer service
Question 3
A company uses the following transportation modes: road, rail, air. The cost of road transportation is ₦500 per kilometer, rail transportation is ₦300 per kilometer, and air transportation is ₦1,000 per kilometer. If the company travels 200 kilometers by road, 300 kilometers by rail, and 100 kilometers by air, what is the total transportation cost?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 4
A bank offers a loan with an interest rate of 12% per annum compounded annually. If the loan amount is ₦500,000 and the loan is repaid after 5 years, what is the total amount paid by the borrower?
A. ₦744,939
B. ₦750,000
C. ₦760,000
D. ₦800,000
Question 5
A firm is considering exporting its products to a foreign market. Which of the following is a key factor to consider when evaluating the feasibility of this decision?
A. Market size
B. Competition
C. Currency fluctuations
D. Taxes and tariffs
Question 6
A company is considering a new investment opportunity in a foreign market. The investment requires an initial outlay of ₦500 million and is expected to generate a return of 15% per annum. However, there is a 20% chance that the investment will fail and result in a loss of ₦200 million. What is the expected return on investment?
A. ₦75 million
B. ₦100 million
C. ₦125 million
D. ₦150 million
Question 7
A consumer is considering purchasing a product with a warranty. Which of the following is a key aspect of the warranty that the consumer should be aware of?
A. Duration of the warranty
B. Scope of the warranty
C. Exclusions from the warranty
D. Cost of the warranty
Question 8
A company has a fleet of 10 vehicles, each with a capacity of 5 tons. If the company is transporting goods that weigh an average of 2 tons per vehicle, what is the total weight of goods being transported?
A. 20 tons
B. 30 tons
C. 40 tons
D. 50 tons
Question 9
A firm is considering the use of a letter of credit to facilitate an international trade transaction. Which of the following is a key benefit of this arrangement?
A. Reduced risk of non-payment
B. Improved cash flow
C. Increased flexibility
D. Enhanced customer service
Question 10
A company's warehouse is experiencing a high rate of stock loss due to inadequate storage facilities. Which of the following warehousing techniques would be most effective in reducing stock loss?
A. First-In-First-Out (FIFO)
B. Last-In-First-Out (LIFO)
C. Just-In-Time (JIT)
D. Economic Order Quantity (EOQ)
Question 11
A company purchases a liability insurance policy to protect against potential lawsuits. The policy has a deductible of ₦100,000 and a premium of ₦500,000. If the company is sued for ₦750,000, what is the total cost of the insurance policy?
A. ₦1,000,000
B. ₦1,500,000
C. ₦1,600,000
D. ₦2,000,000
Question 12
A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300 respectively. The consumer's indifference curves are given by the equation ( U = 2A + 3B ). Find the consumer's optimal consumption bundle.
A. A = 2, B = 1
B. A = 1, B = 2
C. A = 3, B = 1
D. A = 1, B = 3
Question 13
A firm is considering the introduction of a new product. The product has a market size of 100,000 units and a market growth rate of 10% per annum. The firm's marketing budget is ₦500,000. What is the minimum price that the firm should charge for the product to ensure a profit?
A. ₦50 per unit
B. ₦60 per unit
C. ₦70 per unit
D. ₦80 per unit
Question 14
A sole trader's business is given by the equation R = 2,000 + 50Q - 0.5Q^2, where R is the revenue and Q is the quantity sold. If the sole trader wants to maximize revenue, what is the optimal quantity to sell?
A. 20
B. 30
C. 40
D. 50
Question 15
A consumer has purchased a product for ₦10,000 and has been charged a 5% sales tax. If the consumer has paid ₦11,000, how much of the payment is tax?
A. ₦500
B. ₦550
C. ₦600
D. ₦650

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: