POST UTME FUTA 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's cost function is given by C(q) = 2q^2 + 10q + 5. What is the firm's average cost function?
A. \overline{C}(q) = 2q + 10
B. \overline{C}(q) = 2q + 5
C. \overline{C}(q) = 2q^2 + 10q + 5
D. \overline{C}(q) = 2q^2 + 10q
Question 2
A company's inventory management system uses a just-in-time (JIT) approach to minimize inventory levels. What is the primary benefit of JIT?
A. Reduced inventory costs
B. Improved product quality
C. Increased production efficiency
D. Enhanced customer satisfaction
Question 3
A warehouse has a storage capacity of 10,000 units. The warehouse is currently 70% full, with 7,000 units stored. If 1,500 new units are received, what is the new storage capacity utilization?
A. 80%
B. 85%
C. 90%
D. 95%
Question 4
A company's stock is currently priced at ₦120 per share. If the company declares a 20% dividend, what is the new stock price?
A. ₦144
B. ₦128
C. ₦112
D. ₦96
Question 5
In a just-in-time (JIT) inventory system, what is the primary goal of the reorder point?
A. To minimize inventory costs
B. To maximize inventory turnover
C. To ensure that stockouts are avoided
D. To reduce lead times
Question 6
A company's marketing strategy involves creating a sense of urgency among customers to purchase a product. This strategy is an example of which of the following?
A. Scarcity principle
B. Limited-time offer
C. Loss aversion
D. Endowment effect
Question 7
A firm has a warehouse with a storage capacity of 5,000 units. The warehouse is currently 60% full, with 3,000 units stored. If 1,200 new units are received, what is the new storage capacity utilization?
A. 65%
B. 70%
C. 75%
D. 80%
Question 8
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 has 100 units of labor and 100 units of capital, what is the quantity produced?
A. 200
B. 250
C. 300
D. 400
Question 9
In a perfectly competitive market, the demand curve for a firm's product is its marginal revenue curve. What is the implication of this relationship for the firm's profit-maximizing output?
A. The firm will produce at the point where MR = MC.
B. The firm will produce at the point where MR = P.
C. The firm will produce at the point where MR = ATC.
D. The firm will not produce at all.
Question 10
A sole trader's business is not registered with the relevant authorities. What is the name of this legal concept?
A. Unregistered Business
B. Unincorporated Business
C. Unlimited Liability
D. Personal Guarantee
Question 11
A company's financial statements show a net loss of ₦1,000,000. What is the effect of this on the company's share price?
A. The share price will increase
B. The share price will decrease
C. The share price will remain the same
D. The share price will be unaffected
Question 12
A company's financial statements include a balance sheet, income statement, and cash flow statement. Which of the following is the primary purpose of the balance sheet?
A. To show the company's profitability
B. To show the company's liquidity
C. To show the company's financial position at a specific point in time
D. To show the company's cash flows
Question 13
A bank offers a 5-year fixed deposit account with an interest rate of 10% per annum compounded annually. If the principal amount is ₦100,000, what is the future value of the investment after 5 years?
A. ₦163,922.78
B. ₦164,922.78
C. ₦165,922.78
D. ₦166,922.78
Question 14
A business owner wants to expand her operations to a new location. What type of business organization would she need to form to achieve this?
A. Sole proprietorship
B. Partnership
C. Limited liability company
D. Corporation
Question 15
A sole trader's business is registered under which of the following?
A. Partnership
B. Company
C. Sole trader
D. Limited liability partnership

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