POST UTME EKSU 2019 Commerce | Objective
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Question 1
A sole trader, Mr. B, has a business that generates an annual revenue of ₦1.8 million and an annual expense of ₦1.5 million. If Mr. B's business is taxed at a rate of 20%, calculate the amount of tax payable by Mr. B.
Question 2
A bank's reserve requirement is 10% of its total deposits. If the bank has ₦10,000,000 in total deposits, how much must it keep in reserve?
Question 3
A company's insurance policy has a deductible of ₦5,000. If the company incurs a loss of ₦20,000, how much will they pay in premiums?
Question 4
A firm's profit function is given by P(x) = R(x) - C(x), where R(x) is the revenue function and C(x) is the cost function. If the firm produces 50 units, what is the profit?
Question 5
A company's financial statement shows a net profit of ₦1.5 million. If the company's tax rate is 25%, what is the amount of tax the company will pay?
Question 6
A firm's production function is given by the equation Q = 2L^0.5 + 3K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm increases its labor input from 4 to 9, what is the percentage change in the quantity produced?
Question 7
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 price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the minimum cost of production?
Question 8
A company is considering the introduction of a new marketing strategy. The strategy is expected to generate additional revenue of ₦1 billion in the first year, ₦1.2 billion in the second year, and ₦1.5 billion in the third year. However, the company also expects to incur additional costs of ₦500 million in the first year, ₦600 million in the second year, and ₦700 million in the third year. If the company's cost of capital is 12%, calculate the internal rate of return (IRR) of the new marketing strategy.
Question 9
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company wants to increase its production by 20% while keeping labor input constant, what percentage increase in capital input is required?
Question 10
A sole trader's business is considered a separate legal entity from its owner. What is the implication of this separation?
Question 11
A consumer protection law states that a company must provide a 30-day cooling-off period for customers to return products. If a customer purchases a product on January 1st, what is the latest date they can return the product?
Question 12
The concept of specialization in commerce refers to the process by which a firm focuses on producing a specific product or service, thereby increasing its efficiency and reducing costs. Which of the following is a benefit of specialization in commerce?
Question 13
A life insurance policy has a premium of ₦150,000 per annum. The policy pays a benefit of ₦5 million if the policyholder dies within the first 5 years of the policy. What is the probability that the policyholder will die within the first 5 years of the policy?
Question 14
A consumer protection agency has received a complaint from a customer who purchased a product online. The customer alleges that the product was not as described and was of poor quality. The agency has obtained evidence that the seller had made false claims about the product. What should the agency do?
Question 15
A bank's balance sheet is given by the equation Assets = Liabilities + Equity. If the bank's assets increase by 10% and its liabilities increase by 5%, what is the percentage change in its equity?
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