POST UTME KSU 2017 Commerce | Objective

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Question 1
A consumer's budget constraint is given by the equation 2x + 3y = 12. If the consumer's current income is ₦1200, find the consumer's optimal consumption bundle.
A. (2, 4)
B. (4, 2)
C. (6, 0)
D. (0, 6)
Question 2
A company's _______ is the process of dividing its ownership into smaller units, known as shares, and selling them to the public.
A. Capitalization
B. Issuance
C. Distribution
D. Listing
Question 3
A consumer's utility function is given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, what is the consumer's optimal consumption bundle?
A. (2, 2)
B. (3, 1)
C. (4, 0)
D. (0, 4)
Question 4
A consumer has the following indifference curves: IC1: 2x + 3y = 6, IC2: x + 2y = 4. If the consumer's initial endowment is (2, 1), what is the consumer's optimal consumption bundle?
A. (1, 2)
B. (2, 1)
C. (3, 0)
D. (0, 3)
Question 5
A consumer's indifference curve is given by the equation U = 2x + 3y. If the consumer's current budget constraint is 2x + 3y = 12, find the consumer's optimal consumption bundle.
A. (2, 4)
B. (4, 2)
C. (6, 0)
D. (0, 6)
Question 6
A company's financial statements are prepared in accordance with the Generally Accepted Accounting Principles (GAAP). The company's auditor reviews the financial statements to ensure that they are presented fairly and in accordance with the GAAP. What is the primary responsibility of the auditor?
A. To prepare the financial statements.
B. To review the financial statements.
C. To audit the financial statements.
D. To certify the financial statements.
Question 7
A company has the following income statement: Revenue = ₦200,000, Cost of Goods Sold = ₦100,000, and Gross Profit = ₦50,000. What is the company's gross margin percentage?
A. 25%
B. 30%
C. 35%
D. 40%
Question 8
The _______ of a company refers to the process of creating a new business entity, separate from its owners.
A. Formation
B. Registration
C. Incorporation
D. Dissolution
Question 9
A company has a 5% annual growth rate in sales. If the current sales revenue is ₦1 million, what will be the sales revenue 5 years from now?
A. ₦1.5 million
B. ₦2 million
C. ₦2.5 million
D. ₦3 million
Question 10
A firm's cost function is given by C = 2L + 3K. If the firm's current labor and capital inputs are L = 4 and K = 6, respectively, calculate the firm's current total cost.
A. 20
B. 30
C. 40
D. 50
Question 11
A firm is considering two investment projects: Project A with a 5-year payback period and Project B with a 7-year payback period. Which project is more attractive?
A. Project A
B. Project B
C. Both projects are equally attractive
D. Neither project is attractive
Question 12
The _______ of a company refers to the process of dividing the company's ownership into smaller units, known as shares.
A. Capitalization
B. Division
C. Issuance
D. Distribution
Question 13
A company's financial statements are audited annually by an independent auditor. The auditor's report is based on the audit evidence obtained from the company's records and other relevant information. Which of the following is a limitation of the auditor's report?
A. The auditor's report may not reflect the company's true financial position.
B. The auditor's report may not be based on the company's actual transactions.
C. The auditor's report may not be relevant to the company's future financial performance.
D. The auditor's report may not be based on the company's accounting policies.
Question 14
A firm has the following production function: Q = 2L + 3K, where Q is the output, L is the labor, and K is the capital. If the firm wants to produce 20 units of output, how many units of labor and capital are required?
A. L = 5, K = 3
B. L = 3, K = 5
C. L = 4, K = 4
D. L = 6, K = 2
Question 15
In a perfectly competitive market, the law of diminishing marginal utility implies that the demand curve for a firm's product is
A. a vertical line
B. a horizontal line
C. a downward-sloping line
D. an upward-sloping line

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