POST UTME COVENANT UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's demand function is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's total revenue is given by the equation TR = PQ, find the price at which the firm's total revenue is maximized.
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 2
A bank's investment portfolio consists of stocks, bonds, and mutual funds. If the bank has a total investment of ₦1,000,000, and the stocks account for 30% of the portfolio, what is the value of the stocks?
A. ₦300,000
B. ₦350,000
C. ₦400,000
D. ₦450,000
Question 3
A company's insurance policy has a premium of ₦50,000 per year. If the company has a deductible of ₦20,000, and the policy pays out ₦30,000 per claim, what is the expected value of the policy?
A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000
Question 4
A company's production function is given by Q = 2L^0.5K^0.5. If the price of labor increases by 20% and the price of capital increases by 15%, what is the new production level?
A. Q = 1.2L^0.5K^0.5
B. Q = 1.15L^0.5K^0.5
C. Q = 1.2L^0.5K^0.5 + 1.15K^0.5
D. Q = 1.2L^0.5K^0.5 - 1.15K^0.5
Question 5
A firm is considering a new product launch. The product's life cycle is given by the following diagram:
A. The product is in the introduction stage
B. The product is in the growth stage
C. The product is in the maturity stage
D. The product is in the decline stage
Question 6
A company has a 10% commission on all sales. If a salesperson makes ₦50,000 in sales, how much commission will they receive?
A. ₦5,000
B. ₦6,000
C. ₦7,000
D. ₦8,000
Question 7
A sole trader's business is considered a separate legal entity from its owner. However, the owner is personally liable for the business's debts. Which of the following best describes the relationship between a sole trader and their business?
A. Separate legal entity with limited liability
B. Separate legal entity with unlimited liability
C. No legal entity with unlimited liability
D. No legal entity with limited liability
Question 8
The concept of 'first-mover advantage' refers to the
A. ability of a firm to enter a market before its competitors
B. ability of a firm to exit a market before its competitors
C. ability of a firm to maintain its market share over time
D. ability of a firm to reduce its costs over time
Question 9
A bank's cash reserve requirement is 10% of its deposits. If the bank has ₦10,000,000 in deposits, how much cash must it hold in reserve?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 10
A sole trader, Mr. A, has a business income of ₦500,000 and business expenses of ₦200,000. If he has a personal income of ₦300,000 and personal expenses of ₦100,000, what is his total tax liability?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 100 units of output, and the price of labor is ₦50 per unit, and the price of capital is ₦100 per unit, what is the minimum cost of production?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 12
A company's revenue function is given by R = 2x^2 - 10x + 5. If the company wants to maximize its revenue, what is the value of x that will give the maximum revenue?
A. 1
B. 2
C. 3
D. 4
Question 13
A company's marketing mix is given by the 4 Ps: Product, Price, Place, and Promotion. If the company wants to increase sales, which of the following actions would be most effective?
A. Increasing the price of the product
B. Decreasing the price of the product
C. Improving the product's quality
D. Increasing the advertising budget
Question 14
A sole trader's business is considered a separate legal entity from its owner. However, the owner is personally liable for the business's debts. Which of the following best describes the relationship between a sole trader and their business?
A. Separate legal entity with limited liability
B. Separate legal entity with unlimited liability
C. No legal entity with unlimited liability
D. No legal entity with limited liability
Question 15
The 'credit risk' is a type of risk associated with
A. borrowing and lending
B. investing in stocks and bonds
C. trading in foreign currencies
D. issuing and redeeming debt securities

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: