POST UTME SKYLINE UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's production function is given by the Cobb-Douglas production function: Q = 100K^(1/3)L^(2/3), where Q is the quantity produced, K is the capital and L is the labor. If the company wants to increase the quantity produced by 20% while keeping the capital and labor constant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 2
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm wants to maximize its profit, what is the optimal value of L?
A. 10
B. 20
C. 30
D. 40
Question 3
A company has a warehouse with a capacity to store 10,000 units of goods. If the company receives 8,000 units of goods, what is the percentage of the warehouse that is occupied?
A. 20%
B. 30%
C. 40%
D. 50%
Question 4
A firm is considering two different production processes for a new product. Process A has a fixed cost of ₦500,000 and a variable cost of ₦100 per unit. Process B has a fixed cost of ₦750,000 and a variable cost of ₦80 per unit. If the firm produces 10,000 units, which process is more profitable?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 5
A company's financial statement shows a net income of ₦500,000. If its total assets are ₦2,000,000 and its total liabilities are ₦1,000,000, what is its return on equity?
A. 25%
B. 50%
C. 75%
D. 100%
Question 6
A firm's cost function is given by C = 2L + 3K. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm wants to minimize its cost, what is the optimal value of L?
A. 10
B. 20
C. 30
D. 40
Question 7
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 75% full, and the company wants to order more stock. If the lead time for the new stock is 4 weeks, and the company wants to maintain a safety stock of 20% of the capacity, what is the reorder point?
A. 6,000 units
B. 8,000 units
C. 10,000 units
D. 12,000 units
Question 8
A company's insurance policy covers losses due to fire, theft, and natural disasters. Which of the following is a type of insurance policy?
A. Fire insurance policy.
B. Theft insurance policy.
C. Natural disaster insurance policy.
D. All-risk insurance policy.
Question 9
A sole trader's business is registered under the name 'XYZ Limited'. Which of the following is a consequence of this registration?
A. The business is now a partnership.
B. The business is now a private company.
C. The business is now a public company.
D. The business is now a sole trader.
Question 10
A company's marketing strategy involves a mix of advertising, sales promotion, and public relations. Which of the following is a characteristic of a successful marketing strategy?
A. It must be consistent with the company's overall business objectives.
B. It must be tailored to the specific needs of the target market.
C. It must be implemented without any budget allocation.
D. It must be evaluated regularly to ensure its effectiveness.
Question 11
A company has a portfolio of assets with the following returns: 20% for asset A, 15% for asset B, and 10% for asset C. If the company has ₦100,000 invested in each asset, what is the expected return on the portfolio?
A. 15%
B. 16%
C. 17%
D. 18%
Question 12
The Consumer Protection Act of 1999 in Nigeria provides for the protection of consumers from unfair trade practices. Which of the following is a key provision of the Act?
A. The Act provides for the establishment of a Consumer Protection Council.
B. The Act provides for the protection of consumers from unfair trade practices.
C. The Act provides for the establishment of a Consumer Protection Agency.
D. The Act provides for the protection of consumers from environmental hazards.
Question 13
A manufacturing firm produces two products, A and B, using two machines, M1 and M2. The production process involves the following costs: 100 for machine M1 and 200 for machine M2. The firm produces 100 units of product A and 50 units of product B. Using the data given, calculate the total cost of production.
A. 15,000
B. 20,000
C. 25,000
D. 30,000
Question 14
A firm's export strategy involves the use of a trade agreement to reduce tariffs and other trade barriers. Which of the following is a benefit of using such a strategy?
A. Increased market share and competitiveness
B. Improved customer service and satisfaction
C. Enhanced brand reputation and image
D. Reduced costs and expenses
Question 15
A company's revenue function is given by R(x) = 2x^2 + 5x - 3, where x is the number of units sold. If the company wants to maximize its revenue, what is the value of x that will give the maximum revenue?
A. -1
B. 1
C. 2
D. 3

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