POST UTME MADONNA UNIVERSITY 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's warehouse has a capacity of 10,000 units. The company receives a shipment of 5,000 units and already has 3,000 units in stock. What is the total capacity of the warehouse after the shipment is received?
A. 10,000
B. 12,000
C. 13,000
D. 15,000
Question 2
A consumer's indifference curve is given by U = 2X^2 + 3Y^2, where U is the utility and X and Y are the quantities consumed. If the consumer's income is 100, and the prices of X and Y are 5 and 10 respectively, what is the optimal bundle of X and Y?
A. X = 5, Y = 5
B. X = 10, Y = 10
C. X = 15, Y = 15
D. X = 20, Y = 20
Question 3
A firm's cost of production is the sum of its fixed costs and its variable costs. If a firm has fixed costs of 1,000 and variable costs of 500 per unit, and it produces 200 units, its total cost of production is
A. 150,000
B. 120,000
C. 100,000
D. 80,000
Question 4
A firm's revenue function is given by R = 100Q - 2Q^2, where R is the revenue and Q is the quantity sold. If the firm sells 20 units, what is the marginal revenue?
A. 80
B. 90
C. 100
D. 110
Question 5
A company is registered under the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a characteristic of a company?
A. Limited liability
B. Unlimited liability
C. Separate legal entity
D. No partnership
Question 6
A firm's cost function is given by C = 100 + 2Q^2, where C is the cost and Q is the quantity produced. If the firm produces 10 units, what is the total cost?
A. 200
B. 300
C. 400
D. 500
Question 7
A company is considering exporting its products to a foreign market. What are the main risks associated with this decision?
A. Cultural differences, language barriers, and regulatory risks
B. Currency fluctuations, exchange rate risks, and transportation costs
C. Competition from local businesses, market saturation, and potential loss of control
D. Intellectual property risks, product liability, and potential loss of reputation
Question 8
A company's cost of capital is 10% per annum. If it invests in a project with a net present value (NPV) of ₦1,500,000, what is the expected rate of return on investment (ROI)?
A. 12%
B. 15%
C. 18%
D. 20%
Question 9
A firm's profit is calculated by subtracting its total cost of production from its total revenue. If a firm has a total revenue of 10,000 and a total cost of production of 6,000, its profit is
A. 4,000
B. 3,000
C. 2,000
D. 1,000
Question 10
A bank's cash reserve ratio is 20%. If the bank has a total deposit of ₦1,000,000, how much cash must it reserve?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦400,000
Question 11
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a characteristic of a sole trader?
A. Limited liability
B. Unlimited liability
C. Separate legal entity
D. No partnership
Question 12
A consumer's indifference curve is a graphical representation of the different combinations of two goods that the consumer is willing to buy at a given price level. Which of the following is NOT a characteristic of an indifference curve?
A. It slopes upward from left to right
B. It is convex to the origin
C. It is a straight line
D. It is downward sloping
Question 13
A company's marketing strategy involves creating a new product that is designed to appeal to a specific age group. This is an example of which of the following marketing strategies?
A. Product Line Extension
B. Market Segmentation
C. Product Differentiation
D. Market Development
Question 14
A company has a share capital of ₦1,000,000 divided into 100,000 ordinary shares of ₦10 each. If the company issues 20,000 shares at a premium of ₦5 per share, what is the total amount received from the issue of shares?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 15
A company is importing goods from a foreign country. The cost of the goods is 10,000, and the company expects to earn a profit of 20% on the sale of the goods. If the exchange rate is 1 USD = 400 NGN, what is the total cost of the goods in Nigerian Naira?
A. ₦4,000,000
B. ₦4,200,000
C. ₦4,400,000
D. ₦4,600,000

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