POST UTME DELSU 2017 Commerce | Objective

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Question 1
A company's production function is given by Q = 2L^0.5K^0.5. If the company wants to increase its output by 25% while keeping the capital stock constant, what percentage increase in labor is required?
A. 10%
B. 15%
C. 20%
D. 25%
Question 2
A company is considering two different marketing strategies to promote its product. Strategy A involves a one-time payment of ₦10000 to a celebrity to endorse the product, while Strategy B involves a series of smaller payments of ₦500 each to a group of influencers to promote the product. If the company wants to spend a total of ₦20000 on marketing, which strategy should it choose?
A. Strategy A
B. Strategy B
C. Both strategies are equally effective
D. Neither strategy is effective
Question 3
In a sole trade business, the owner's capital is ₦250,000. If the business generates a profit of ₦120,000, what is the owner's new capital?
A. ₦370,000
B. ₦350,000
C. ₦370,000
D. ₦370,000
Question 4
A company is considering a new marketing strategy that involves using social media influencers to promote its products. What type of marketing strategy is this?
A. Content marketing
B. Influencer marketing
C. Affiliate marketing
D. Experiential marketing
Question 5
A company has the following balance sheet as at December 31, 2019:
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 6
A company uses a risk management system to identify and mitigate potential risks to its business. The system involves several stages, including risk assessment, risk prioritization, and risk mitigation. What is the primary benefit of using a risk management system in this context?
A. Improved financial performance
B. Increased customer satisfaction
C. Reduced risk exposure
D. Enhanced reputation
Question 7
A firm is considering the introduction of a new product. The product has a fixed cost of ₦3,000,000 and a variable cost of ₦1,000 per unit. The selling price of the product is ₦2,500 per unit. If the firm expects to sell 20,000 units, what is the minimum price at which the product should be sold to break even?
A. ₦2,500
B. ₦3,000
C. ₦3,500
D. ₦4,000
Question 8
A company's balance sheet shows total assets of ₦1,500,000 and total liabilities of ₦800,000. What is the company's equity?
A. ₦700,000
B. ₦700,000
C. ₦700,000
D. ₦700,000
Question 9
A company is considering the introduction of a new product line. The product has a fixed cost of ₦2,000,000 and a variable cost of ₦750 per unit. The selling price of the product is ₦1,800 per unit. If the company expects to sell 15,000 units, what is the minimum price at which the product should be sold to break even?
A. ₦1,800
B. ₦2,250
C. ₦2,700
D. ₦3,150
Question 10
A company offers a warranty on its products, which guarantees that the products will be free from defects for a certain period. What type of insurance is this?
A. Product liability insurance
B. Professional indemnity insurance
C. Public liability insurance
D. Warranty insurance
Question 11
The Central Bank of Nigeria (CBN) uses monetary policy to control inflation by increasing the reserve requirement for commercial banks. This action will lead to a decrease in the money supply, which will cause a decrease in the aggregate demand. However, if the CBN also increases the interest rate, it will lead to a decrease in consumption and investment, but an increase in the exchange rate. What is the likely effect on the trade balance?
A. An increase in the trade deficit
B. A decrease in the trade deficit
C. No change in the trade balance
D. An increase in the trade surplus
Question 12
A firm's revenue function is given by R(x) = 3x^2 - 2x + 5. If the firm produces 5 units of output, its total revenue is
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 13
A company's financial statement shows a net income of ₦500,000. If the company's tax rate is 25%, what is the company's tax liability?
A. ₦125,000
B. ₦125,000
C. ₦125,000
D. ₦125,000
Question 14
A bank's reserve requirement is 10%. If the bank has ₦1,000,000 in deposits, how much must it keep in reserve?
A. ₦100,000
B. ₦100,000
C. ₦100,000
D. ₦100,000
Question 15
A company is considering the introduction of a new product line. The product has a fixed cost of ₦1,500,000 and a variable cost of ₦500 per unit. The selling price of the product is ₦1,200 per unit. If the company expects to sell 10,000 units, what is the minimum price at which the product should be sold to break even?
A. ₦1,200
B. ₦1,500
C. ₦1,800
D. ₦2,100

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