POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a policy of paying its employees a 10% bonus on their annual salaries. If an employee's salary is ₦120,000, what is the bonus amount?
A. ₦10,000
B. ₦12,000
C. ₦15,000
D. ₦20,000
Question 2
A company has a production capacity of 10,000 units per month. The demand for the product is 12,000 units per month. What is the level of production specialization needed to meet the demand?
A. 50%
B. 75%
C. 100%
D. 150%
Question 3
A manufacturer produces two products: A and B. Product A requires 2 hours of labor and 1 hour of machine time, while product B requires 1 hour of labor and 2 hours of machine time. If the manufacturer has 8 hours of labor and 6 hours of machine time available, how many units of product A and product B should be produced to maximize profit, assuming a profit of 10 per unit of product A and 15 per unit of product B?
A. 10 units of product A and 6 units of product B
B. 8 units of product A and 4 units of product B
C. 6 units of product A and 2 units of product B
D. 4 units of product A and 8 units of product B
Question 4
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing
A. diminishing returns
B. increasing costs
C. decreasing demand
D. increasing supply
Question 5
In a production system, what is the primary goal of the specialization process?
A. To increase the variety of products offered
B. To reduce the complexity of production processes
C. To achieve economies of scale
D. To improve product quality
Question 6
A company's marketing strategy involves a 10% increase in advertising expenditure. If the original advertising expenditure was ₦500,000, what is the new advertising expenditure?
A. ₦550,000
B. ₦500,000
C. ₦450,000
D. ₦400,000
Question 7
A company has a production cost of ₦10 per unit and a selling price of ₦20 per unit. What is the profit per unit?
A. ₦5
B. ₦10
C. ₦15
D. ₦20
Question 8
In a perfectly competitive market, the law of diminishing marginal utility implies that the marginal utility of the last unit of a good consumed is always greater than the marginal utility of the first unit. What is the correct statement about the relationship between marginal utility and the law of diminishing marginal utility?
A. The law of diminishing marginal utility implies that the marginal utility of the last unit of a good consumed is always greater than the marginal utility of the first unit.
B. The law of diminishing marginal utility implies that the marginal utility of the first unit of a good consumed is always greater than the marginal utility of the last unit.
C. The law of diminishing marginal utility implies that the marginal utility of the last unit of a good consumed is always equal to the marginal utility of the first unit.
D. The law of diminishing marginal utility implies that the marginal utility of the last unit of a good consumed is always less than the marginal utility of the first unit.
Question 9
A company's financial leverage ratio is 2.5. If its total debt is ₦250,000,000, what is its total assets?
A. ₦125,000,000
B. ₦500,000,000
C. ₦1,000,000,000
D. ₦2,500,000,000
Question 10
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's marginal revenue function is MR = 200 - 4Q, what is the price elasticity of demand?
A. -0.5
B. -1
C. -2
D. -3
Question 11
A company is considering launching a new product in a market where there are already several established brands. The company has conducted market research and has determined that the new product will have a market share of 20%. What is the company's expected revenue from the new product?
A. ₦1,000,000
B. ₦2,000,000
C. ₦3,000,000
D. ₦4,000,000
Question 12
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If L = 4 and K = 9, what is the marginal product of labor?
A. 0.5
B. 1
C. 2
D. 4
Question 13
A consumer is considering purchasing a product that has a price of ₦5,000. The consumer has a budget of ₦10,000 and is willing to spend up to 50% of their budget on the product. What is the maximum amount the consumer is willing to pay for the product?
A. ₦2,500
B. ₦5,000
C. ₦7,500
D. ₦10,000
Question 14
A company is considering implementing a just-in-time (JIT) inventory system. Which of the following is a key benefit of JIT?
A. Reduced inventory costs
B. Improved product quality
C. Increased production efficiency
D. Enhanced customer satisfaction
Question 15
A sole trader's business is considered a separate legal entity from its owner. What is the primary reason for this separation?
A. Limited liability
B. Separate taxation
C. Separate accounting
D. Separate management

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