POST UTME AAUA 2019 Commerce | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company's directors have a duty to act in the best interests of the company and its shareholders. What is the name of this duty?
Question 2
A company's sole trader is considering the purchase of a new piece of equipment for its business. The equipment costs ₦150,000 and has a useful life of 5 years. The company expects to use the equipment for 8 hours a day, 5 days a week. The equipment's maintenance cost is ₦10,000 per year. Calculate the annual depreciation of the equipment using the straight-line method.
Question 3
A consumer has the right to cancel a contract within 14 days of signing. What is the name of this type of cancellation?
Question 4
A firm wants to minimize its total cost of production, which is given by TC = 100L + 200K. If the firm's current input prices are L = ₦100 and K = ₦200, and it wants to produce 100 units of output, what should be the optimal input combination?
Question 5
A company is considering two different modes of transportation to ship its goods from one location to another. The cost of shipping by truck is ₦150,000, while the cost of shipping by air is ₦200,000. However, the trucking company offers a 10% discount on its services, while the airline offers a 5% discount on its services. Which mode of transportation is more cost-effective?
Question 6
A company's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the quantity produced, L is labor and K is capital. If the company wants to increase production by 25%, what percentage increase in labor and capital is required?
Question 7
A bank's reserve requirement is 10%. If the bank has 100,000 in deposits, how much must it hold in reserves?
Question 8
A firm wants to maximize its profit, which is given by π = 100Q - 200L - 300K. If the firm's current input prices are L = ₦100 and K = ₦200, and it wants to produce 100 units of output, what should be the optimal input combination?
Question 9
A firm has a production capacity of 1,000 units per day. If the firm operates for 20 days, what is the total production?
Question 10
The concept of specialization in production is closely related to the idea of comparative advantage. Explain how a country can benefit from specializing in the production of a particular good, even if it is not the most efficient producer of that good.
Question 11
A sole trader's business is considered a separate legal entity from its owner. However, the owner may be held personally liable for the business's debts. What is the name of this type of liability?
Question 12
A firm wants to minimize its total cost of production, which is given by TC = 100L + 200K. If the firm's current input prices are L = ₦100 and K = ₦200, and it wants to produce 100 units of output, what should be the optimal input combination?
Question 13
A firm wants to minimize its total cost of production, which is given by TC = 100L + 200K. If the firm's current input prices are L = ₦100 and K = ₦200, and it wants to produce 100 units of output, what should be the optimal input combination?
Question 14
A company's sole trader is considering the purchase of a new piece of equipment for its business. The equipment costs ₦300,000 and has a useful life of 5 years. The company expects to use the equipment for 8 hours a day, 5 days a week. The equipment's maintenance cost is ₦20,000 per year. Calculate the annual depreciation of the equipment using the straight-line method.
Question 15
In a perfectly competitive market, the supply curve is determined by the marginal cost curve. However, in a real-world scenario, the supply curve is often influenced by other factors such as the law of diminishing returns. Which of the following best describes the relationship between the law of diminishing returns and the supply curve?
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