POST UTME MADONNA UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a capital structure consisting of 60% debt and 40% equity. If the cost of debt is 8% and the cost of equity is 12%, what is the weighted average cost of capital (WACC)?
A. 6%
B. 7%
C. 8%
D. 9%
Question 2
A firm's home trade involves importing 500 units of a product from a foreign country. If the firm expects a 5% increase in import costs, how much will it pay for the imported product?
A. ₦2500
B. ₦2625
C. ₦2750
D. ₦2875
Question 3
A company is considering two marketing strategies: Strategy A, which involves a 10% increase in advertising expenditure, and Strategy B, which involves a 20% increase in sales force. If the company expects a 5% increase in sales revenue regardless of the strategy chosen, which strategy would result in a higher profit?
A. Strategy A
B. Strategy B
C. Both strategies result in the same profit
D. Neither strategy results in a higher profit
Question 4
A company is considering two marketing strategies: Strategy A, which involves a 10% increase in advertising expenditure, and Strategy B, which involves a 20% increase in sales promotions. If the company's current advertising expenditure is ₦1,000,000 and its current sales promotions expenditure is ₦500,000, which strategy will result in a higher total marketing expenditure?
A. Strategy A
B. Strategy B
C. Both strategies will result in the same total marketing expenditure
D. Neither strategy will result in a higher total marketing expenditure
Question 5
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is the quantity produced, L is the number of laborers, and H is the number of machines. If the firm wants to produce 16 units of output, and it has 4 laborers, how many machines (H) should it hire?
A. 2
B. 4
C. 8
D. 16
Question 6
A bank offers a 5-year fixed deposit account with an interest rate of 8% per annum compounded annually. If a customer deposits ₦100,000 at the beginning of the first year, how much will the customer have at the end of the fifth year?
A. ₦163,922
B. ₦164,000
C. ₦164,100
D. ₦164,200
Question 7
A warehouse is a facility used for the storage of goods, and it is an essential part of the supply chain. Which of the following is a benefit of using a warehouse?
A. Reduced transportation costs
B. Increased storage capacity
C. Improved inventory management
D. All of the above
Question 8
A consumer protection law is a law that protects consumers from unfair or deceptive business practices. Which of the following is a right of a consumer under consumer protection law?
A. The right to return goods that are defective or damaged
B. The right to cancel a contract within a specified period
C. The right to compensation for losses suffered as a result of a business practice
D. All of the above
Question 9
A company's insurance policy covers losses due to natural disasters. Which of the following is a type of insurance policy that covers losses due to natural disasters?
A. Liability insurance.
B. Property insurance.
C. Business interruption insurance.
D. Workers' compensation insurance.
Question 10
In a market economy, the law of supply and demand determines the price of a commodity. However, in a planned economy, the government sets the price of a commodity. Which of the following is a characteristic of a planned economy?
A. The government controls the production and distribution of goods.
B. The market forces of supply and demand determine the price of goods.
C. The government sets the price of goods and services.
D. The economy is based on private ownership of resources.
Question 11
A warehouse has a storage capacity of 10,000 units. The warehouse is currently 75% full, with 7,500 units stored. If 2,000 more units are received, what percentage of the warehouse's capacity will be occupied?
A. 62.5%
B. 75%
C. 87.5%
D. 90%
Question 12
A sole trade business has a profit of ₦100,000 and a loss of ₦50,000 in two consecutive years. What is the net profit of the business over the two-year period?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 13
A company is considering two production strategies: Strategy A, which involves producing 1000 units of a product, and Strategy B, which involves producing 500 units of a product. If the company expects a 10% increase in production costs regardless of the strategy chosen, which strategy would result in a higher profit?
A. Strategy A
B. Strategy B
C. Both strategies result in the same profit
D. Neither strategy results in a higher profit
Question 14
A warehouse has a storage capacity of 10,000 units. The warehouse is currently 70% full. If 500 units are received in a shipment, what is the new percentage of the warehouse that is full?
A. 60%
B. 65%
C. 70%
D. 75%
Question 15
A firm is considering two different inventory management systems to manage its inventory. System A is a just-in-time (JIT) system that orders and receives inventory just in time to meet customer demand, while System B is a periodic review system that orders inventory at fixed intervals. If the firm wants to minimize its inventory costs, which system should it choose?
A. System A
B. System B
C. Both systems
D. Neither system

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