POST UTME IGBINEDION UNIVERSITY 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company, DEF Limited, is considering the introduction of a new product. The product is expected to generate sales of ₦20 million in the first year, ₦25 million in the second year, and ₦30 million in the third year. The company's cost of production is ₦15 million in the first year, ₦18 million in the second year, and ₦21 million in the third year. What is the contribution margin ratio (CMR) in terms of sales?
A. 20%
B. 25%
C. 30%
D. 35%
Question 2
A company's transport costs are ₦500,000 per month. The company uses a truck to transport goods. The truck's fuel efficiency is 10 kilometers per liter. The truck travels 5,000 kilometers per month. What is the company's fuel cost per month?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 3
A company is considering the introduction of a new product. The product is expected to have a high demand, but the production costs are high. What type of market structure is this company operating in?
A. Perfect Competition
B. Monopoly
C. Monopolistic Competition
D. Oligopoly
Question 4
A sole trader is operating a business that has a high level of risk. What is the primary advantage of operating as a sole trader?
A. Limited liability
B. Easy to set up
C. High level of control
D. Flexibility in decision-making
Question 5
A firm's cost function is given by C(x) = 2x^2 + 3x - 1. If the firm's marginal cost is 5 units when x = 3, what is the firm's total cost?
A. 25
B. 27
C. 29
D. 31
Question 6
A warehouse is storing goods worth ₦10 million. The goods are insured against theft and damage. What is the primary purpose of the insurance policy?
A. To provide financial compensation in case of loss
B. To reduce the risk of theft and damage
C. To increase the value of the goods
D. To provide education and awareness to consumers
Question 7
A consumer protection agency has received complaints about a company's unfair business practices. The agency has collected evidence of the company's actions and is considering taking legal action. Which of the following is a key principle of consumer protection law?
A. The consumer has the right to sue the company for damages.
B. The company has the right to refuse service to any consumer.
C. The consumer has the right to a fair and transparent business practice.
D. The company has the right to charge any price it wants.
Question 8
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity of a commodity in this market?
A. ₦1000, 100 units
B. ₦500, 50 units
C. ₦2000, 200 units
D. ₦1500, 150 units
Question 9
A company's revenue function is given by R = 100Q - 2Q^2, where R is revenue and Q is quantity sold. What is the maximum revenue?
A. ₦5000
B. ₦6000
C. ₦7000
D. ₦8000
Question 10
A company has two warehouses, A and B, with capacities of 1000 and 500 units, respectively. Warehouse A has a storage cost of ₦50 per unit, while Warehouse B has a storage cost of ₦75 per unit. If the company needs to store 1200 units, how much will it cost to store all the units in Warehouse A and the remaining units in Warehouse B?
A. ₦12500
B. ₦15000
C. ₦17500
D. ₦20000
Question 11
A company is considering the introduction of a new product. The product is expected to have a high demand, but the production costs are high. What type of market structure is this company operating in?
A. Perfect Competition
B. Monopoly
C. Monopolistic Competition
D. Oligopoly
Question 12
A company is using a marketing strategy that involves creating a sense of urgency to encourage customers to make a purchase. What type of marketing strategy is this?
A. Scarcity
B. Exclusivity
C. Social Proof
D. Authority
Question 13
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If labor and capital are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
B. 15%
C. 20%
D. 25%
Question 14
A company is considering implementing a new production process that will increase efficiency and reduce costs. However, the new process will also require significant investment in new equipment and training for employees. Which of the following is a key consideration when evaluating the potential benefits of the new process?
A. The potential increase in revenue.
B. The potential decrease in costs.
C. The potential increase in efficiency.
D. The potential increase in employee satisfaction.
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 16 units and the number of workers (L) is 4, how many units of capital (K) are required?
A. 2
B. 4
C. 8
D. 16

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