POST UTME COVENANT UNIVERSITY 2024 Commerce | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A bank's balance sheet is given by Assets = Liabilities + Equity. If the bank's assets are worth ₦1,000,000, its liabilities are ₦500,000, and its equity is ₦200,000, what is the bank's return on equity (ROE)?
Question 2
A firm specializes in producing a single product, and its production function is given by Q = 100L^0.5K^0.25. If the firm's current labor and capital inputs are L = 16 and K = 25, respectively, what is the firm's current output level?
Question 3
A company has a fleet of 10 vehicles, each with a capacity of 5 tons. If the company is transporting goods that weigh an average of 2 tons per vehicle, what is the total weight of goods being transported?
Question 4
A bank has a minimum balance requirement of ₦5,000 for its savings account. If a customer has a balance of ₦3,000, what is the minimum amount the customer must deposit to meet the requirement?
Question 5
A firm is considering the use of a letter of credit to facilitate an international trade transaction. Which of the following is a key benefit of this arrangement?
Question 6
A company's warehouse is experiencing a high rate of stock loss due to inadequate storage facilities. Which of the following warehousing techniques would be most effective in reducing stock loss?
Question 7
A firm is considering two different investment options. Option A has a 60% chance of success and will generate a return of ₦100 million if successful. Option B has a 40% chance of success and will generate a return of ₦150 million if successful. What is the expected return on investment for each option?
Question 8
In a perfectly competitive market, the demand curve for a firm's product is its?
Question 9
A company is considering a new investment opportunity in a foreign market. The investment requires an initial outlay of ₦400 million and is expected to generate a return of 18% per annum. However, there is a 25% chance that the investment will fail and result in a loss of ₦200 million. What is the expected return on investment?
Question 10
A company uses a just-in-time (JIT) inventory system to manage its stock levels. Which of the following is a key benefit of JIT?
Question 11
A consumer is considering purchasing a product with a warranty. Which of the following is a key aspect of the warranty that the consumer should be aware of?
Question 12
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. The consumer's indifference curves are given by the equation ( U = 2A + 3B ). Find the consumer's optimal consumption bundle.
Question 13
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the wage rate is ₦100 per hour, and the rental rate of capital is ₦200 per hour, what is the minimum cost of production?
Question 14
A company has a production function given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor input, and K is the capital input. If the company wants to produce 100 units of output, how many units of labor should it hire?
Question 15
A company is considering two different production processes to manufacture a product. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit. Process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the selling price of the product is ₦80 per unit, which process should the company choose?
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