POST UTME ACHIEVERS UNIVERSITY 2019 Commerce | Objective
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Question 1
A firm has a production process that involves two stages: Stage 1 and Stage 2. The production function for Stage 1 is given by Q1 = 2L1^0.5H1^0.5, where Q1 is the output of Stage 1, L1 is labor in Stage 1, and H1 is capital in Stage 1. The production function for Stage 2 is given by Q2 = 2L2^0.5H2^0.5, where Q2 is the output of Stage 2, L2 is labor in Stage 2, and H2 is capital in Stage 2. If the firm wants to increase the output of Stage 1 by 20% while keeping labor constant, what percentage increase in capital is required for Stage 1?
Question 2
A firm is considering two production processes. Process A requires an initial investment of ₦100,000 and generates a profit of ₦20,000 per unit produced. Process B requires an initial investment of ₦150,000 and generates a profit of ₦30,000 per unit produced. If the firm produces 1,000 units per year, which process is more profitable?
Question 3
A company's financial statements show a net profit of ₦1,000,000. If the company's tax rate is 25%, what is the amount of tax the company will pay?
Question 4
A bank's cash reserve ratio is 20%. If the bank has a total deposit of ₦10,000,000, what is the amount of cash the bank must hold in reserve?
Question 5
A company's financial statements show a net income of ₦1.2 million, but the auditor notes that the company has a contingent liability of ₦500,000. What is the correct accounting treatment for this liability?
Question 6
A company is considering two different marketing strategies: a push strategy and a pull strategy. Which strategy is more likely to be effective in a business-to-business market?
Question 7
A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300 respectively. If the consumer spends all of their budget on the two goods, what is the maximum amount of good A that the consumer can buy?
Question 8
A foreign trade agreement between two countries involves the exchange of goods and services between the two countries. What is the name of this type of trade?
Question 9
A bank's financial statements show a decrease in its current ratio over the past two years. What does this indicate?
Question 10
A firm is considering two investment projects. Project A has a 10% chance of generating a return of ₦100,000 and a 90% chance of generating a return of ₦50,000. Project B has a 20% chance of generating a return of ₦120,000 and an 80% chance of generating a return of ₦40,000. Which project has a higher expected return?
Question 11
A company's articles of association state that the company must hold an annual general meeting within six months of the end of its financial year. If the company's financial year ends on 31st December, what is the latest date by which the annual general meeting can be held?
Question 12
A company's insurance policy covers losses due to fire, theft, and natural disasters. What type of insurance policy is this?
Question 13
A firm has a warehouse with a capacity of 1000 units. The firm receives a shipment of 500 units and already has 300 units in stock. If the firm wants to maintain a safety stock of 20% of the warehouse capacity, what is the maximum number of units that the firm can receive without exceeding the warehouse capacity?
Question 14
A company is considering outsourcing its logistics operations to a third-party logistics provider. What is the primary benefit of outsourcing logistics?
Question 15
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing costs. What is the primary reason for this upward-sloping supply curve?
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