POST UTME AAUA 2021 Commerce | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company is considering two different production processes for its 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 company produces 10,000 units, which process will result in lower total cost?
Question 2
A bank offers a 10% discount on the first ₦10,000 of a deposit and a 5% discount on the remaining amount. If a customer deposits ₦20,000, how much will the customer pay after the discounts?
Question 3
A company's marketing strategy involves creating a new product line to target a specific demographic. The product line is expected to generate a revenue of ₦1.2 billion in the first year. However, the company's financial analysts have estimated that the production costs will be ₦800 million. If the company's profit margin is 25%, what is the expected profit from the new product line?
Question 4
A sole trader, Mr. A, has a business that generates an annual revenue of ₦5 million. His business expenses include rent (₦1.2 million), salaries (₦1.5 million), and miscellaneous expenses (₦800,000). If Mr. A's business is taxed at a rate of 20%, what is his taxable income?
Question 5
In a perfectly competitive market, the supply curve is downward sloping because of the law of increasing opportunity costs. However, if the market is subject to increasing returns to scale, the supply curve will be upward sloping. Which of the following statements is correct regarding the supply curve in a market with increasing returns to scale?
Question 6
A firm's demand curve is given by the equation Qd = 100 - 2P. If the price of the good is 10, what is the quantity demanded?
Question 7
A sole trader, Mr. A, has a business that generates an annual revenue of ₦5 million. His business expenses include rent (₦1.2 million), salaries (₦1.5 million), and miscellaneous expenses (₦800,000). If Mr. A's business is taxed at a rate of 20%, what is his taxable income?
Question 8
A company exports goods worth ₦5 million to a foreign country. If the exchange rate is 1 USD = ₦420, what is the value of the export in USD?
Question 9
A life insurance policy has a premium of ₦5000 per year. The policy pays a benefit of ₦200,000 if the policyholder dies within the first 5 years. After 5 years, the policy pays a benefit of ₦100,000. What is the present value of the policy if the discount rate is 5%?
Question 10
A company's marketing strategy involves creating a new product line to target a specific demographic. The product line is expected to generate a revenue of ₦1.2 billion in the first year. However, the company's financial analysts have estimated that the production costs will be ₦800 million. If the company's profit margin is 25%, what is the expected profit from the new product line?
Question 11
A company is considering two different warehouse locations for its products. Location A is closer to the customers, but has a higher rent of ₦200,000 per month. Location B is farther from the customers, but has a lower rent of ₦100,000 per month. If the company wants to store 10,000 units, which location will result in lower total cost?
Question 12
A company's insurance policy covers losses due to natural disasters. Which of the following best describes the type of risk that this policy covers?
Question 13
A bank has a loan portfolio with a total value of ₦10,000,000. The bank's risk management policy requires that the loan portfolio be diversified across different industries. If the bank has loans worth ₦3,000,000 in the manufacturing industry, ₦2,000,000 in the services industry, and ₦5,000,000 in the agriculture industry, what is the concentration risk of the loan portfolio?
Question 14
A firm's ability to create a unique selling proposition is best described by which of the following business concepts?
Question 15
A bank's decision to increase interest rates on loans can have a ripple effect on the entire economy. Which of the following best describes the type of risk associated with this decision?
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