POST UTME ESUT 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A warehouse has a storage capacity of 1000 units. If 300 units are already stored, what is the remaining storage capacity?
A. 200 units
B. 300 units
C. 400 units
D. 500 units
Question 2
A company's production process involves the use of specialized machinery. Explain how the company can benefit from economies of scale in its production process.
A. By producing a large quantity of goods, the company can reduce its costs per unit.
B. By producing a small quantity of goods, the company can increase its market share.
C. By using specialized machinery, the company can increase its production speed.
D. By producing a variety of goods, the company can reduce its costs per unit.
Question 3
A bank offers a 5-year fixed deposit account with an interest rate of 8% per annum compounded annually. If a customer deposits ₦100,000, what is the future value of the investment after 5 years?
A. ₦163,922
B. ₦164,922
C. ₦165,922
D. ₦166,922
Question 4
A firm specializes in producing a single product. If the production function is given by Q = 100L^0.4K^0.6, where L is labor and K is capital, and the firm's budget constraint is given by W_L L + W_K K = 1000, where W_L is the wage rate and W_K is the rental rate of capital, what is the firm's optimal level of labor and capital?
A. (L, K) = (10, 20)
B. (L, K) = (20, 10)
C. (L, K) = (15, 15)
D. (L, K) = (25, 5)
Question 5
A firm specializes in producing only one product. This is an example of:
A. Division of Labour
B. Economies of Scale
C. Product Differentiation
D. Monopoly
Question 6
A company has a 10% dividend yield and a current share price of ₦100. What is the annual dividend payment per share?
A. ₦10
B. ₦12
C. ₦15
D. ₦20
Question 7
A company has two warehouses, A and B, with capacities of 1000 and 500 units, respectively. Warehouse A has a storage cost of ₦10 per unit, while Warehouse B has a storage cost of ₦15 per unit. If the company has 1200 units to store, what is the minimum total storage cost?
A. ₦12,000
B. ₦13,500
C. ₦15,000
D. ₦16,500
Question 8
The process of transferring risk from one party to another is known as:
A. Risk Management
B. Insurance
C. Hedging
D. Diversification
Question 9
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. What is the opportunity cost of producing a good?
A. The cost of producing the good in terms of other goods that could be produced instead
B. The cost of producing the good in terms of the resources used to produce it
C. The cost of importing the good from another country
D. The cost of storing the good in a warehouse
Question 10
A firm has a production function given by Q = 100L^0.4K^0.6, where L is labor and K is capital. If the firm's budget constraint is given by W_L L + W_K K = 1000, where W_L is the wage rate and W_K is the rental rate of capital, and the firm wants to maximize its profit, what is the optimal level of labor and capital?
A. (L, K) = (10, 20)
B. (L, K) = (20, 10)
C. (L, K) = (15, 15)
D. (L, K) = (25, 5)
Question 11
A company is considering investing in a new project that has a high potential return but also involves a high level of risk. What is the primary consideration for the company when deciding whether to invest in the project?
A. The potential return on investment
B. The level of risk involved
C. The time required to break even
D. The competition in the market
Question 12
A bank's primary function is to act as a:
A. Central Bank
B. Commercial Bank
C. Investment Bank
D. Merchant Bank
Question 13
A company's marketing strategy involves creating a brand identity that appeals to a specific target audience. Which of the following is a key element of a brand identity?
A. Product features
B. Price strategy
C. Brand personality
D. Distribution channels
Question 14
A consumer has a credit card with a balance of ₦50,000 and an annual interest rate of 20%. What is the total interest paid after one year?
A. ₦10,000
B. ₦12,000
C. ₦15,000
D. ₦20,000
Question 15
A firm's break-even point is the point at which its total revenue equals its total fixed costs. If a firm's total fixed costs are ₦50,000 and its selling price is ₦100, what is the break-even point in units sold?
A. 500 units
B. 750 units
C. 1000 units
D. 1250 units

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