POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm wants to maximize its revenue, what price should it charge?
A. ₦20
B. ₦25
C. ₦30
D. ₦35
Question 2
In a just-in-time (JIT) inventory system, what is the primary goal of the warehouse manager?
A. To minimize inventory costs
B. To maximize storage capacity
C. To reduce lead times
D. To increase product variety
Question 3
A company's Memorandum of Association is a document that outlines its _______ and powers
A. Objectives
B. Powers
C. Share Capital
D. Directors
Question 4
A sole trader's business involves the sale of goods. If the sole trader's profit is ₦120,000 and the total sales are ₦500,000, what is the gross profit percentage?
A. 24%
B. 24%
C. 24%
D. 24%
Question 5
A company uses the transportation cost model to determine the optimal shipping route. The model is based on the following equation: TC = f(Q) + c * Q, where TC is the total cost, f(Q) is the fixed cost, c is the variable cost per unit, and Q is the quantity shipped. If the fixed cost is ₦500, the variable cost per unit is ₦10, and the quantity shipped is 100 units, what is the total cost?
A. ₦1,500
B. ₦1,600
C. ₦1,700
D. ₦1,800
Question 6
A firm exports 80% of its production to foreign markets. If the firm's total production is 10,000 units, how many units are exported?
A. 8,000 units
B. 9,000 units
C. 10,000 units
D. 11,000 units
Question 7
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm wants to increase output by 20% while keeping labor constant at 100 units, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 8
A company is considering two different production processes for manufacturing a product. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit. Process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the company wants to produce 1,000 units, which process should it choose?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 9
A company's risk management policy involves the use of insurance to mitigate risks. If the company has a 10% chance of losing ₦100,000 and the insurance premium is 5% of the potential loss, what is the expected value of the insurance premium?
A. ₦5,000
B. ₦5,000
C. ₦5,000
D. ₦5,000
Question 10
A company has a warehouse with a capacity of 10,000 units. The current inventory level is 8,000 units. If the company receives a new shipment of 2,000 units, what is the new inventory level?
A. 6,000 units
B. 8,000 units
C. 10,000 units
D. 12,000 units
Question 11
A firm's cost function is given by C = 100 + 2L + 3H, where C is cost, L is labor, and H is capital. If the firm wants to minimize cost while producing 100 units of output, what is the optimal level of labor?
A. 20
B. 30
C. 40
D. 50
Question 12
The _______ of a company refers to the process of creating a new company by dividing an existing company into two or more separate entities
A. Merger
B. Demerger
C. Acquisition
D. Liquidation
Question 13
A firm's cost function is given by the equation C = 2L + 3K, where C is cost, L is labor, and K is capital. If the firm increases labor from 4 units to 6 units, and capital from 2 units to 3 units, what is the new level of cost?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 14
A transport company has a fleet of 10 trucks, each with a capacity to carry 20 tons of goods. If the company receives an order for 200 tons of goods, how many trucks will be required to fulfill the order?
A. 5
B. 6
C. 7
D. 8
Question 15
A firm is considering exporting its product to a foreign country. The firm's export price is ₦500 per unit, while the foreign country's import price is ₦600 per unit. If the firm's transportation cost is ₦100 per unit, and the foreign country's tariff is ₦200 per unit, should the firm export the product?
A. Yes
B. No
C. Maybe
D. It depends on the firm's production costs

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