POST UTME REDEEMERS UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering the introduction of a new product line. The product has a high fixed cost of ₦500,000 and a variable cost of ₦200 per unit. The selling price of the product is ₦300 per unit. If the company expects to sell 2,000 units, what is the minimum price at which the product must be sold to break even?
A. ₦250
B. ₦275
C. ₦300
D. ₦325
Question 2
A company has two branches, one in Lagos and one in Abuja. The Lagos branch has a sales revenue of ₦10 million and a cost of ₦5 million, while the Abuja branch has a sales revenue of ₦8 million and a cost of ₦4 million. What is the total profit of the company?
A. ₦3 million
B. ₦4 million
C. ₦5 million
D. ₦6 million
Question 3
A company's articles of association is a document that outlines the rules and regulations of the company. Which of the following is NOT a part of the articles of association?
A. Objects of the company
B. Management structure
C. Dividend policy
D. Auditor's report
Question 4
A bank offers a loan of ₦1 million to a customer at an interest rate of 15% per annum. The loan is repayable in 5 years. What is the total amount the customer will pay to the bank at the end of the loan period?
A. ₦1.5 million
B. ₦1.6 million
C. ₦1.7 million
D. ₦1.8 million
Question 5
A company's warehouse has a capacity of 10,000 units. If the current stock level is 8,000 units, what is the percentage of the warehouse that is currently occupied?
A. 80%
B. 85%
C. 90%
D. 95%
Question 6
A firm has the following production function: Q = 2L + 3K, where Q is the quantity produced, L is the number of labor units, and K is the number of capital units. If the firm wants to produce 10 units of the product, and it has 3 labor units and 2 capital units available, what is the opportunity cost of using the last labor unit?
A. ₦2
B. ₦3
C. ₦4
D. ₦5
Question 7
A company's sole trader is considering the purchase of a new warehouse to store its inventory. The warehouse has a capacity of 10,000 units and costs ₦5 million to purchase. The company's current warehouse has a capacity of 5,000 units and costs ₦2 million to rent. If the company expects to increase its sales by 20% in the next year, what is the minimum amount of money the company should save each month to afford the new warehouse?
A. ₦125,000
B. ₦150,000
C. ₦175,000
D. ₦200,000
Question 8
A firm's break-even point is the point at which its total revenue equals its
A. Total fixed costs
B. Total variable costs
C. Total costs
D. Total revenue
Question 9
A firm's revenue function is given by R = 100Q - 2Q^2, where R is revenue and Q is output. If the firm wants to maximize revenue, what is the optimal level of output?
A. 20
B. 30
C. 40
D. 50
Question 10
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is NOT a characteristic of a successful marketing strategy?
A. Flexibility
B. Adaptability
C. Consistency
D. Unpredictability
Question 11
A consumer purchases a product for ₦5,000 and pays a 5% sales tax. What is the amount of sales tax paid?
A. ₦200
B. ₦250
C. ₦300
D. ₦350
Question 12
A warehouse management system involves inventory control, order processing, and shipping. Which of the following is a benefit of using a warehouse management system?
A. Improved efficiency
B. Enhanced customer service
C. Reduced costs
D. All of the above
Question 13
A warehouse is a facility used for storing goods. Which of the following is NOT a type of warehouse?
A. Dry warehouse
B. Cold storage warehouse
C. Automated warehouse
D. Bank
Question 14
A firm's cost function is given by C = 100 + 2L + 3K, where C is cost, L is labor, and K is capital. If the firm wants to minimize cost while producing 100 units of output, what is the optimal combination of labor and capital?
A. L = 20, K = 30
B. L = 30, K = 20
C. L = 40, K = 10
D. L = 10, K = 40
Question 15
A bank's primary function is to act as a financial intermediary. Which of the following is NOT a function of a bank?
A. Accepting deposits
B. Granting loans
C. Investing in government securities
D. Manufacturing goods

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