POST UTME NILE UNIVERSITY 2019 Commerce | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company has a production capacity of 10,000 units per month. It sells 8,000 units at ₦200 per unit and 2,000 units at ₦300 per unit. Calculate the total revenue.
Question 2
A business organization is considering the use of a risk management strategy that involves transferring risk to a third party. What is the purpose of this strategy?
Question 3
A company has a market share of 30% in the industry. If the company wants to increase its market share by 5%, what is the new market share?
Question 4
A sole trader, Mr. Ade, sells goods worth ₦250,000 in a month. His expenses are 20% of the sales value. Calculate the profit made by Mr. Ade.
Question 5
A firm is considering the purchase of a new machine that costs ₦3 million. The machine is expected to last for 5 years and generate annual savings of ₦800,000. The firm's cost of capital is 12% per annum. What is the payback period of the new machine?
Question 6
A consumer purchases a product with a recommended retail price of ₦5,000. If the consumer is offered a discount of 10% and a cashback of 5%, what is the final amount paid by the consumer?
Question 7
A company is considering two different marketing strategies for its new product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. Which of the following is a potential advantage of Strategy A?
Question 8
A company's sole trader has a business income of ₦500,000 and expenses of ₦380,000. Calculate the sole trader's profit before tax.
Question 9
A company is considering the introduction of a new product line. The product line requires an initial investment of ₦6 million and is expected to generate annual profits of ₦2.5 million for the next 6 years. The company's cost of capital is 12% per annum. What is the payback period of the new product line?
Question 10
A company's sole trader has a business income of ₦400,000 and expenses of ₦280,000. Calculate the sole trader's profit before tax.
Question 11
A sole trader operates a business with an annual turnover of ₦500,000. The business has a profit of ₦150,000. If the sole trader's drawings are ₦100,000, what is the business's net profit?
Question 12
A company is considering the introduction of a new product line. The product line requires an initial investment of ₦5 million and is expected to generate annual profits of ₦2 million for the next 5 years. The company's cost of capital is 10% per annum. What is the net present value (NPV) of the new product line?
Question 13
A company has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. If the company issues 20,000 shares at a premium of ₦5 per share, what is the total amount received from the issue of shares?
Question 14
In a production system, the Law of Diminishing Returns states that as the quantity of a variable input increases, the marginal product of that input will eventually decrease. However, this law does not apply to all production systems. Which of the following production systems is an exception to the Law of Diminishing Returns?
Question 15
A business organization is considering the use of a just-in-time inventory system. What are the benefits of this system?
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