POST UTME LAUTECH 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a sole trade business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Easy to set up
C. Flexibility in decision-making
D. Tax benefits
Question 2
A company has a production function Q = 3L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company wants to increase its production by 30%, what percentage increase in labor input is required, assuming the capital input remains constant?
A. 10%
B. 20%
C. 30%
D. 40%
Question 3
A company has a product liability insurance policy that covers damages up to ₦5 million. If the company is sued for ₦3 million, what is the maximum amount the insurance company will pay?
A. ₦3 million
B. ₦5 million
C. ₦2.5 million
D. ₦1.5 million
Question 4
A company's sole trader has been sued for breach of contract. The company's insurance policy has a deductible of ₦300,000. If the company's liability is ₦900,000, what is the amount the company must pay out of pocket?
A. ₦600,000
B. ₦700,000
C. ₦900,000
D. ₦1,000,000
Question 5
A firm's cost function is given by C(Q) = 2Q^2 + 100Q. If the firm produces 100 units of output, what is the total cost?
A. ₦20000
B. ₦30000
C. ₦40000
D. ₦50000
Question 6
A company has a production function Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company wants to increase its production by 50%, what percentage increase in capital input is required, assuming the labor input remains constant?
A. 10%
B. 20%
C. 30%
D. 40%
Question 7
A firm is considering two different modes of transportation for its products: air and sea. The cost of transporting a unit of product by air is ₦300, while the cost of transporting a unit of product by sea is ₦250. If the firm wants to minimize its transportation cost, what is the optimal mode of transportation?
A. Air
B. Sea
C. Both
D. Neither
Question 8
A company is considering exporting its products to a foreign market. What are the main advantages and disadvantages of exporting?
A. Advantages: increased revenue, reduced competition; Disadvantages: higher costs, cultural differences
B. Advantages: increased revenue, reduced competition; Disadvantages: higher costs, cultural differences, and language barriers
C. Advantages: increased revenue, reduced competition; Disadvantages: higher costs, cultural differences, and language barriers, and political instability
D. Advantages: increased revenue, reduced competition; Disadvantages: higher costs, cultural differences, and language barriers, and political instability, and lack of market research
Question 9
A firm is considering two different modes of transportation for its products: road and rail. The cost of transporting a unit of product by road is ₦200, while the cost of transporting a unit of product by rail is ₦150. If the firm wants to minimize its transportation cost, what is the optimal mode of transportation?
A. Road
B. Rail
C. Both
D. Neither
Question 10
A company has a capital structure consisting of 60% debt and 40% equity. If the company's cost of debt is 8% and its cost of equity is 12%, what is the company's weighted average cost of capital (WACC)?
A. 6%
B. 8%
C. 10%
D. 12%
Question 11
A firm is considering investing in a new project. The project requires an initial investment of ₦10 million and is expected to generate ₦8 million in revenue per year for 5 years. The firm's cost of capital is 12%. What is the project's internal rate of return (IRR)?
A. 10%
B. 12%
C. 15%
D. 18%
Question 12
A firm's marketing strategy involves using a combination of advertising and sales promotions to increase sales. If the firm spends ₦2,000,000 on advertising and ₦1,200,000 on sales promotions, what is the total cost of the marketing strategy?
A. ₦3,200,000
B. ₦3,500,000
C. ₦4,000,000
D. ₦4,500,000
Question 13
A company has a market share of 30% in the industry. If the company wants to increase its market share by 10%, what is the new market share?
A. 40%
B. 35%
C. 30%
D. 25%
Question 14
A bank's cash management system uses the following formula to calculate the optimal cash balance: ( B = sqrt{ rac{2D}{h}} ), where B is the optimal cash balance, D is the daily cash inflow, and h is the holding cost. If the daily cash inflow is ₦100,000 and the holding cost is 5% per annum, what is the optimal cash balance?
A. ₦1000
B. ₦10,000
C. ₦100,000
D. ₦1,000,000
Question 15
A company's communication system uses the following formula to calculate the optimal transmission rate: ( T = sqrt{ rac{2D}{h}} ), where T is the optimal transmission rate, D is the data transfer rate, and h is the holding cost. If the data transfer rate is 100 Mbps and the holding cost is ₦50 per Mbps per hour, what is the optimal transmission rate?
A. 50 Mbps
B. 100 Mbps
C. 150 Mbps
D. 200 Mbps

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