POST UTME KSU 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A _______ is a type of business organization where ownership is divided among a single individual.
A. sole proprietorship
B. partnership
C. corporation
D. cooperative
Question 2
A firm's financial leverage is measured by its debt-to-equity ratio. If a firm has a debt-to-equity ratio of 2:1, what is the firm's financial leverage?
A. 2
B. 1
C. 3
D. 4
Question 3
A sole trader's business is registered under which of the following?
A. Partnership
B. Limited Liability Company
C. Sole Proprietorship
D. Cooperative Society
Question 4
A _______ is a contract between two or more parties where one party agrees to carry out a specific task or service for the other party.
A. agency agreement
B. service contract
C. lease agreement
D. employment contract
Question 5
The _______ of a firm's financial statements is a measure of its ability to meet its short-term obligations.
A. liquidity
B. solvency
C. profitability
D. efficiency
Question 6
A marketing manager wants to increase sales by 20% using the 4 Ps of marketing. Which of the following is NOT one of the 4 Ps?
A. Product
B. Price
C. Promotion
D. Distribution
Question 7
A company's cost function is given by C = 100L + 200K, where C is the total cost, L is the labor input, and K is the capital input. If the company increases its labor input from 4 to 9 units, and its capital input from 16 to 25 units, by how much will its total cost increase?
A. ₦500
B. ₦1000
C. ₦2000
D. ₦5000
Question 8
A _______ is a type of business organization where ownership is divided among the employees.
A. cooperative
B. partnership
C. corporation
D. sole proprietorship
Question 9
A commercial bank's primary function is to act as a _______ between the surplus units of the economy and the deficit units.
A. banker
B. broker
C. agent
D. intermediary
Question 10
A firm's financial leverage is measured by its debt-to-equity ratio. If a firm has a debt-to-equity ratio of 2:1, what is the firm's financial leverage?
A. 2
B. 1
C. 3
D. 4
Question 11
A bank's interest rate on a savings account is 5% per annum. If a customer deposits ₦100,000 into the account, how much interest will the customer earn in one year?
A. ₦5,000
B. ₦5,500
C. ₦6,000
D. ₦6,500
Question 12
A warehouse has a storage capacity of 10,000 square meters. If the warehouse is currently 70% occupied, and each pallet occupies 2 square meters, how many pallets can be stored in the remaining space?
A. 1,000 pallets
B. 1,500 pallets
C. 2,000 pallets
D. 3,000 pallets
Question 13
A _______ is a type of business organization where ownership is divided among a small number of shareholders.
A. corporation
B. partnership
C. sole proprietorship
D. cooperative
Question 14
A company has a cash reserve of ₦1,000,000 and wants to invest in a project that requires an initial investment of ₦500,000. If the project has a 20% chance of success and a 10% chance of failure, what is the expected value of the project?
A. ₦750,000
B. ₦850,000
C. ₦950,000
D. ₦1,050,000
Question 15
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases its labor input from 4 to 9 units, and its capital input from 16 to 25 units, by how many percentage points will its quantity produced increase?
A. 10%
B. 15%
C. 20%
D. 25%

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