POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering using a just-in-time inventory system. Which of the following is a key benefit of this system?
A. Reduced inventory costs
B. Improved product quality
C. Increased flexibility
D. Reduced lead times
Question 2
A firm's profit is calculated as the difference between its
A. total revenue and total cost
B. total revenue and average cost
C. marginal revenue and marginal cost
D. average revenue and average cost
Question 3
A consumer's indifference curve is given by U = 2x + 3y, where U is utility and x and y are quantities of goods x and y. If the consumer's income increases by 20%, how will the indifference curve shift?
A. Shifts inward
B. Shifts outward
C. Remains unchanged
D. Rotates counterclockwise
Question 4
A company's financial statements show a net profit of ₦2,000,000. If the company's tax rate is 25%, what is the amount of tax payable?
A. ₦500,000
B. ₦400,000
C. ₦450,000
D. ₦550,000
Question 5
A firm's break-even point is the point at which its total revenue equals its total fixed costs. If the firm's total fixed costs are ₦100,000 and its selling price is ₦500, and its variable cost per unit is ₦200, how many units must it sell to break even?
A. 200 units
B. 250 units
C. 300 units
D. 350 units
Question 6
A company's break-even point is the point at which its total revenue equals its total fixed costs. If the firm's total fixed costs are ₦150,000 and its selling price is ₦600, and its variable cost per unit is ₦250, how many units must it sell to break even?
A. 250 units
B. 300 units
C. 350 units
D. 400 units
Question 7
A firm's production function is given by Q = 2L^0.5 * K^0.5, where Q is output, L is labor, and K is capital. If the firm wants to increase its output by 20% while keeping labor constant, how much should it increase its capital?
A. 10%
B. 20%
C. 30%
D. 40%
Question 8
A company has the following data on its production costs and revenues per unit:
A. ₦1500
B. ₦1200
C. ₦1000
D. ₦1800
Question 9
A firm is considering investing in a new production technology. Which of the following is a key benefit of this technology?
A. Increased productivity
B. Improved product quality
C. Reduced labor costs
D. Increased energy efficiency
Question 10
A firm's production function is given by Q = 2L^0.5 * K^0.5, where Q is output, L is labor, and K is capital. If the firm wants to increase its output by 20% while keeping labor constant, how much should it increase its capital?
A. 10%
B. 20%
C. 30%
D. 40%
Question 11
A firm is considering the purchase of a new machine that costs ₦8 million. The machine is expected to generate annual savings of ₦2 million for the next 6 years. If the firm's cost of capital is 18% per annum, what is the payback period of the investment?
A. 4 years
B. 5 years
C. 6 years
D. 7 years
Question 12
A company is considering the introduction of a new product line. The product requires an initial investment of ₦3 million and has a projected annual profit of ₦4 million. If the company's cost of capital is 15% per annum, what is the payback period of the investment?
A. 2 years
B. 3 years
C. 4 years
D. 5 years
Question 13
A company is considering the introduction of a new product line. The product will be manufactured in a foreign country and sold in Nigeria. What type of business unit is this?
A. Sole Trade
B. Company
C. Joint Venture
D. Franchise
Question 14
A company is considering the introduction of a new product line. The product requires an initial investment of ₦1.5 million and has a projected annual profit of ₦2.5 million. If the company's cost of capital is 10% per annum, what is the internal rate of return (IRR) on the investment?
A. 15%
B. 12%
C. 18%
D. 20%
Question 15
A consumer purchases a product with a price tag of ₦1,500. If the consumer pays with a ₦5,000 note, what is the change due to the consumer?
A. ₦3,500
B. ₦3,000
C. ₦4,000
D. ₦4,500

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