POST UTME PAN-ATLANTIC UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%
Question 2
A sole trader's business is exposed to a risk of loss due to a fire in the premises. The insurance company offers a policy with a premium of ₦120,000 and a deductible of ₦50,000. If the business suffers a loss of ₦200,000, what is the maximum amount the business will have to pay?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 3
A company'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 revenue function is R(x) = 2x^2 + 5x - 3 and the cost function is C(x) = 2x^2 + 5x - 3, what is the profit when x = 10?
A. 0
B. 10
C. 20
D. 30
Question 4
A company's supply chain involves the movement of goods, services, and information from raw materials to end customers. Which of the following is a type of supply chain risk?
A. Operational risk
B. Financial risk
C. Strategic risk
D. Environmental risk
Question 5
A firm's production function is given by Q = 3L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm is currently producing 27 units of output with 9 units of labor and 9 units of capital, what is the marginal product of labor?
A. 3
B. 6
C. 9
D. 12
Question 6
The concept of 'caveat emptor' in consumer protection means
A. let the buyer beware
B. let the seller beware
C. let the consumer beware
D. let the government beware
Question 7
A company'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 revenue function is R(x) = 2x^2 + 5x - 3 and the cost function is C(x) = 2x^2 + 5x - 3, what is the profit when x = 10?
A. 0
B. 10
C. 20
D. 30
Question 8
A company's articles of association can be amended by
A. a simple majority vote
B. a two-thirds majority vote
C. a unanimous vote
D. a vote by the board of directors
Question 9
A company is considering two different marketing strategies: a high-low pricing strategy and a penetration pricing strategy. Which strategy is more likely to increase market share in the short run?
A. High-Low Pricing
B. Penetration Pricing
C. Both strategies are equally effective
D. Neither strategy is effective
Question 10
A company's financial statements show that its revenue increased by 15% and its expenses decreased by 10% compared to the previous year. What is the percentage increase in net profit?
A. 5%
B. 10%
C. 15%
D. 20%
Question 11
A company's articles of association can be amended by
A. a simple majority vote
B. a two-thirds majority vote
C. a unanimous vote
D. a vote by the board of directors
Question 12
A firm's cost of capital is the minimum return that investors demand for their investment in the firm. Which of the following is NOT a component of a firm's cost of capital?
A. Debt financing
B. Equity financing
C. Preferred stock financing
D. Government grants
Question 13
A consumer has purchased a product on hire-purchase terms. Which of the following is a key right of the consumer under the Hire-Purchase Act?
A. The right to terminate the agreement
B. The right to assign the agreement
C. The right to receive a refund of the deposit
D. The right to claim damages for breach of contract
Question 14
A bank offers a loan of ₦1,000,000 at an interest rate of 12% per annum compounded annually. If the loan is repaid after 5 years, what is the total amount paid by the borrower?
A. ₦1,625,937.42
B. ₦1,628,937.42
C. ₦1,631,937.42
D. ₦1,634,937.42
Question 15
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%

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