POST UTME UNN 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A person invests ₦20,000 in a savings account with an annual interest rate of 8%. If the interest is compounded annually, what is the amount in the account after 2 years?
A. ₦40,000
B. ₦42,000
C. ₦44,000
D. ₦46,000
Question 2
A firm's revenue is calculated as the product of the price per unit and the quantity sold. If the price per unit is ₦100 and the quantity sold is 100 units, what is the total revenue?
A. ₦10,000
B. ₦100,000
C. ₦1,000,000
D. ₦10,000,000
Question 3
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 its revenue, what level of output should it produce?
A. 10
B. 20
C. 30
D. 40
Question 4
A company's marketing strategy involves a mix of promotional tools to reach its target audience. Which of the following tools is most likely to be used in a business-to-business (B2B) marketing context?
A. Social media advertising
B. Trade shows and exhibitions
C. Email marketing
D. Content marketing
Question 5
A sole trader's business is registered under which of the following?
A. Partnership
B. Company
C. Sole Proprietorship
D. Cooperative
Question 6
A company uses the following cost function: C = 200 + 5Q + 0.1Q^2. If the company produces 100 units of output, what is its total cost?
A. ₦1200
B. ₦1500
C. ₦1800
D. ₦2000
Question 7
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor and K is capital. If the firm wants to increase its output by 20% while keeping labor constant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 8
A company is considering the introduction of a new product. The product's demand is expected to be highly seasonal, with peak demand during the summer months. The company's production costs are as follows: fixed costs of ₦1,500,000 per month, and variable costs of ₦500 per unit produced. The selling price of the product is ₦1,000 per unit. If the company wants to maximize its profits, what is the optimal production level for the summer months?
A. 10,000 units
B. 20,000 units
C. 30,000 units
D. 40,000 units
Question 9
A firm's production function is given by Q = 3L^0.5 * K^0.5, where Q is output, L is labor, and K is capital. If the firm increases labor from 9 units to 16 units, and capital from 16 units to 25 units, what is the new output?
A. 12
B. 15
C. 18
D. 20
Question 10
A firm's insurance broker is considering two different insurance policies to cover the firm's business risks. Policy A will cost ₦500,000 per annum and has a deductible of ₦100,000, while Policy B will cost ₦750,000 per annum and has a deductible of ₦50,000. If the firm's expected annual loss is ₦200,000, which policy should it choose?
A. Policy A
B. Policy B
C. Both policies
D. Neither policy
Question 11
The main disadvantage of a sole trader is that it provides?
A. Limited liability
B. Unlimited liability
C. Easy formation
D. Easy dissolution
Question 12
The main advantage of a partnership is that it provides?
A. Limited liability
B. Unlimited liability
C. Easy formation
D. Easy dissolution
Question 13
The main disadvantage of a partnership is that it provides?
A. Limited liability
B. Unlimited liability
C. Easy formation
D. Easy dissolution
Question 14
A company's warehouse is currently storing 10,000 units of a product. The company wants to maintain a safety stock of 20% of the total inventory. If the company wants to minimize its holding costs, what is the optimal reorder point?
A. 8,000 units
B. 10,000 units
C. 12,000 units
D. 14,000 units
Question 15
A firm's production function is given by Q = 2L^0.5 * K^0.5, where Q is output, L is labor, and K is capital. If the firm increases labor from 4 units to 9 units, and capital from 9 units to 16 units, what is the percentage change in output?
A. 25%
B. 30%
C. 35%
D. 40%

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