POST UTME KSU 2019 Commerce | Objective

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Question 1
A sole trader's business is registered under which of the following?
A. Partnership
B. Limited Liability Company
Correct C. Sole Proprietorship
D. Cooperative Society

Correct Answer: C

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Question 2
A company's Articles of Association is a document that outlines the?
A. Objectives of the company
B. Rights and duties of shareholders
Correct C. Rules and regulations for the management of the company
D. Procedure for the appointment of directors

Correct Answer: C

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Question 3
A risk management strategy involves?
A. Identifying and evaluating risks
B. Assessing and prioritizing risks
Correct C. Developing and implementing risk mitigation plans
D. Monitoring and reviewing risk management activities

Correct Answer: C

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Question 4
A company's Memorandum of Association is a document that outlines the?
Correct A. Objectives of the company
B. Rights and duties of shareholders
C. Rules and regulations for the management of the company
D. Procedure for the appointment of directors

Correct Answer: A

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Question 5
A sole trader's business is not registered under which of the following?
A. Partnership
Correct B. Limited Liability Company
C. Sole Proprietorship
D. Cooperative Society

Correct Answer: B

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Question 6
A company is considering two production methods for its new product: Method A, which requires an initial investment of ₦1,500,000 and produces 10,000 units per month, and Method B, which requires an initial investment of ₦2,000,000 and produces 15,000 units per month. If the company expects to sell each unit for ₦500, how many months will it take for the company to break even using Method A?
Correct A. 12 months
B. 15 months
C. 18 months
D. 20 months

Correct Answer: A

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Question 7
A firm is considering two advertising strategies: Strategy A, which involves a one-time payment of ₦200,000 for a 30-second commercial, and Strategy B, which involves a monthly payment of ₦50,000 for a series of 10 commercials. If the firm expects to reach 100,000 potential customers with each commercial, how much will Strategy B cost per customer?
Correct A. ₦0.50 per customer
B. ₦0.75 per customer
C. ₦1.00 per customer
D. ₦1.25 per customer

Correct Answer: A

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Question 8
A company has two warehouses, A and B, with capacities of 10,000 units and 5,000 units, respectively. If the company expects to receive 8,000 units of inventory, how many units can be stored in Warehouse B?
A. 2,000 units
B. 3,000 units
C. 4,000 units
Correct D. 5,000 units

Correct Answer: D

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Question 9
A firm is considering two export strategies: Strategy A, which involves exporting 10,000 units of product to Country X at a price of ₦500 per unit, and Strategy B, which involves exporting 5,000 units of product to Country Y at a price of ₦750 per unit. If the firm expects to earn a profit of ₦50 per unit on each sale, how much profit will the firm make from Strategy A?
Correct A. ₦5,000,000
B. ₦6,250,000
C. ₦7,500,000
D. ₦8,750,000

Correct Answer: A

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Question 10
A company has two production lines, A and B, with production capacities of 5,000 units and 3,000 units, respectively. If the company expects to produce 8,000 units of product, how many units will be produced on Line A?
A. 3,000 units
B. 4,000 units
Correct C. 5,000 units
D. 6,000 units

Correct Answer: C

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Question 11
In a perfectly competitive market, what is the relationship between the marginal revenue product (MRP) and the marginal factor cost (MFC)?
A. MRP > MFC
B. MRP < MFC
Correct C. MRP = MFC
D. MRP - MFC

Correct Answer: C

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Question 12
A company is considering two different modes of transportation for its goods: road and rail. The cost of transporting 1 ton of goods by road is ₦150, while the cost of transporting 1 ton of goods by rail is ₦120. If the company needs to transport 500 tons of goods, what is the total cost of transportation by road?
Correct A. ₦75,000
B. ₦75,500
C. ₦76,000
D. ₦76,500

Correct Answer: A

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Question 13
A firm is producing a good with a marginal cost (MC) of ₦10 and a fixed cost of ₦500. If the firm produces 50 units of the good, what is the total cost of production?
A. ₦600
B. ₦650
C. ₦700
Correct D. ₦750

Correct Answer: D

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Question 14
A company is considering two different marketing strategies: product differentiation and market segmentation. Which strategy is more likely to increase the company's market share?
Correct A. Product differentiation
B. Market segmentation
C. Both strategies are equally effective
D. Neither strategy is effective

Correct Answer: A

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Question 15
A firm is producing a good with a demand function of Q = 100 - 2P. If the firm wants to maximize its revenue, what is the optimal price?
A. ₦20
Correct B. ₦30
C. ₦40
D. ₦50

Correct Answer: B

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Question 16
In a perfectly competitive market, the supply curve is downward sloping because of the law of increasing marginal opportunity cost. What is the primary reason for this downward slope?
A. The law of diminishing marginal utility
Correct B. The law of increasing marginal opportunity cost
C. The law of supply and demand
D. The law of diminishing returns

Correct Answer: B

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Question 17
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the firm's current inputs are L = 4 and K = 9, what is the marginal product of labor?
Correct A. 1
B. 2
C. 3
D. 4

Correct Answer: A

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Question 18
A firm's cost function is given by C = 2L + 3K. If the firm's current inputs are L = 6 and K = 4, what is the total cost?
A. 30
Correct B. 40
C. 50
D. 60

Correct Answer: B

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Question 19
A firm's revenue function is given by R = 2Q^2. If the firm's current output is Q = 3, what is the marginal revenue?
A. 6
Correct B. 8
C. 10
D. 12

Correct Answer: B

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Question 20
A firm's profit function is given by \pi = R - C. If the firm's current revenue and cost are R = 20 and C = 15, what is the profit?
A. 5
Correct B. 10
C. 15
D. 20

Correct Answer: B

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Question 21
In a perfectly competitive market, the supply curve is a straight line, and the demand curve is downward-sloping. What is the equilibrium price and quantity of a commodity in this market?
A. ₦500, 100 units
Correct B. ₦600, 80 units
C. ₦700, 60 units
D. ₦800, 40 units

Correct Answer: B

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Question 22
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm has 16 units of labor and 25 units of capital, what is the maximum output?
A. 50
B. 60
Correct C. 70
D. 80

Correct Answer: C

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Question 23
A company has a budget constraint of ₦10,000 and a production function of Q = 2L + 3K, where Q is output, L is labor, and K is capital. If the price of labor is ₦2,000 per unit and the price of capital is ₦3,000 per unit, what is the optimal combination of labor and capital?
A. L = 2, K = 3
Correct B. L = 3, K = 2
C. L = 4, K = 1
D. L = 1, K = 4

Correct Answer: B

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Question 24
A firm's revenue function is given by R = 2Q^2 - 10Q + 20, where R is revenue and Q is output. If the firm produces 5 units of output, what is the revenue?
A. ₦50
B. ₦60
Correct C. ₦70
D. ₦80

Correct Answer: C

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Question 25
A company has a production function of Q = 2L + 3K, where Q is output, L is labor, and K is capital. If the firm has 16 units of labor and 25 units of capital, what is the marginal product of labor?
A. 2
B. 3
Correct C. 4
D. 5

Correct Answer: C

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