POST UTME NOUN 2024 Commerce | Objective

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Question 1
In the context of insurance and risk management, what is the primary purpose of a deductible in a policy?
A. To reduce the premium paid by the policyholder
B. To increase the likelihood of a claim being made
C. To transfer some of the risk from the policyholder to the insurer
D. To provide a financial incentive for the policyholder to avoid making a claim
Question 2
A trader imports goods worth ₦500,000 and incurs a 10% customs duty. What is the amount of customs duty paid?
A. ₦50,000
B. ₦45,000
C. ₦40,000
D. ₦35,000
Question 3
A firm's break-even point is the point at which its total revenue equals its total fixed costs. What is the break-even point for a firm with a fixed cost of ₦100,000 and a variable cost of ₦50 per unit, if it sells 200 units?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 4
A company exports goods worth ₦5 million to a foreign country. If the exchange rate is 1 USD = 420 Naira, what is the value of the export in USD?
A. 11,904.76 USD
B. 12,000 USD
C. 12,096.19 USD
D. 12,192.38 USD
Question 5
A firm's production function can be described by the Cobb-Douglas production function, which is given by
A. Q = AK^αL^β
B. Q = AK^αL^β + C
C. Q = AK^αL^β - C
D. Q = AK^αL^β / C
Question 6
A firm is producing a product with a total revenue of ₦1,500,000 and a total cost of ₦1,200,000. Using the break-even analysis, what is the profit of the firm?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 7
A company is considering two different production processes for its product. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit. Process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the selling price of the product is ₦120 per unit, which process should the company use?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 8
A consumer purchases a product online and receives a defective item. What is the consumer's legal recourse?
A. Return the product for a full refund
B. Exchange the product for a new one
C. Seek compensation for damages
D. File a complaint with the consumer protection agency
Question 9
A firm's profit function is given by Φ = R - C, where Φ is the profit, R is the total revenue, and C is the total cost. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the new profit level?
A. \phi = 40 + 2.4L + 3.45K
B. \phi = 40 + 2.2L + 3.15K
C. \phi = 40 + 2.6L + 3.75K
D. \phi = 40 + 2.8L + 4.05K
Question 10
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will
A. increase
B. decrease
C. remain constant
D. move in the opposite direction
Question 11
A firm has a probability distribution of its profits as follows: P(Profit = ₦100,000) = 0.2, P(Profit = ₦200,000) = 0.3, P(Profit = ₦300,000) = 0.5. What is the expected value of the firm's profits?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 12
A firm's production function is given by Q = 2L + 3K, where Q is the output, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the new output level?
A. Q = 2.4L + 3.45K
B. Q = 2.2L + 3.15K
C. Q = 2.6L + 3.75K
D. Q = 2.8L + 4.05K
Question 13
A company is considering investing in a new project that has a projected return on investment (ROI) of 12% per annum. If the cost of capital is 8% per annum, what is the net present value (NPV) of the project after 5 years?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 14
In a sole trader business, what is the primary advantage of using a separate business bank account?
A. Separate personal and business finances
B. Increased tax deductions
C. Improved credit rating
D. Enhanced business reputation
Question 15
A company is considering investing in a new project that has a projected return on investment (ROI) of 15% per annum. If the cost of capital is 10% per annum, what is the internal rate of return (IRR) of the project?
A. 12%
B. 15%
C. 18%
D. 20%

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