POST UTME IGBINEDION UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A warehouse has a storage capacity of 10,000 units. The warehouse is currently 70% full. If 500 units are added to the warehouse, what is the new percentage of capacity?
A. 60%
B. 65%
C. 70%
D. 75%
Question 2
A firm specializes in producing a particular type of widget. The production process involves several stages, including cutting, shaping, and assembling. Which of the following is an example of specialization in production?
A. Vertical integration
B. Horizontal integration
C. Division of labor
D. Outsourcing
Question 3
A consumer protection law requires that all businesses provide a 30-day cooling-off period for customers to cancel their purchases. If a customer purchases a product on January 1st and wants to cancel, what is the latest date they can cancel their purchase?
A. January 1st
B. January 15th
C. February 1st
D. February 15th
Question 4
A firm's cost function is given by C = 100 + 2L + 3K, where C is cost, L is labor, and K is capital. If labor increases by 10% and capital remains constant, what is the percentage change in cost?
A. 5%
B. 10%
C. 15%
D. 20%
Question 5
In a sole trader business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Unlimited liability
C. Easy to set up
D. Flexibility in decision-making
Question 6
A bank has a reserve requirement of 10% and a cash reserve of ₦100,000. If the bank wants to increase its lending capacity, what is the maximum amount it can lend?
A. ₦500,000
B. ₦750,000
C. ₦1,000,000
D. ₦1,250,000
Question 7
A firm's cost function is given by C = 50 + 2x + 0.01x^2. If the firm wants to minimize its cost, what is the optimal level of output?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 8
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing costs. However, in a monopolistically competitive market, the supply curve is also upward-sloping due to the presence of advertising and product differentiation. Which of the following is a correct statement regarding the supply curve in a monopolistically competitive market?
A. The supply curve is upward-sloping due to the law of increasing costs.
B. The supply curve is upward-sloping due to the presence of advertising and product differentiation.
C. The supply curve is downward-sloping due to the presence of advertising and product differentiation.
D. The supply curve is horizontal due to the presence of advertising and product differentiation.
Question 9
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to increase its output by 20%, what is the required percentage increase in labor and capital?
A. 10% increase in labor and 10% increase in capital
B. 20% increase in labor and 20% increase in capital
C. 30% increase in labor and 30% increase in capital
D. 40% increase in labor and 40% increase in capital
Question 10
A company uses a push marketing strategy to promote its products. Which of the following is a characteristic of this strategy?
A. Focus on customer needs
B. Emphasis on product features
C. Use of advertising and promotions
D. Personal selling and salesmanship
Question 11
A sole trader has a business income of ₦500,000 and expenses of ₦300,000. What is the profit before tax?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 12
A firm's marketing strategy involves a mix of promotional activities to create awareness and stimulate demand for its products. Which of the following is NOT a characteristic of a promotional mix?
A. Product placement
B. Event marketing
C. Public relations
D. Direct marketing
Question 13
A firm's inventory management involves the tracking of goods in stock. Which of the following is a type of inventory control method?
A. Just-in-time inventory
B. Economic order quantity
C. Materials requirements planning
D. Vendor-managed inventory
Question 14
A company's revenue function is given by R = 1000 + 20L, where R is revenue and L is labor. If labor increases by 20%, what is the percentage change in revenue?
A. 10%
B. 20%
C. 30%
D. 40%
Question 15
The concept of risk management in insurance involves identifying and assessing potential risks, then developing strategies to mitigate or transfer them. Which of the following is NOT a type of risk management strategy?
A. Avoidance
B. Transfer
C. Mitigation
D. Acceptance

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