POST UTME COVENANT UNIVERSITY 2023 Commerce | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm is considering two different production processes. Process A requires an initial investment of ₦100,000 and generates a profit of ₦20,000 per year for 5 years. Process B requires an initial investment of ₦150,000 and generates a profit of ₦30,000 per year for 5 years. Which process has a higher net present value?
Question 2
A company's marketing strategy involves a 20% discount on all products for the first 3 months of the year. If the original price of a product is ₦1,000, what is the new price after the discount?
Question 3
A consumer has a budget constraint of 100, and the prices of two goods are 5 and 10, respectively. If the consumer's indifference curve is tangent to the budget line, what is the consumer's optimal bundle?
Question 4
A consumer has a credit card with a balance of ₦50,000 and an interest rate of 20% per annum. What is the interest charged for the first year?
Question 5
A sole trader has a business that generates an annual profit of ₦500,000. If the sole trader's tax rate is 25%, how much tax will the sole trader pay?
Question 6
A company is considering exporting its products to a foreign market. Which of the following is a major advantage of exporting?
Question 7
A bank's reserve requirement is 10%. If the bank has ₦1,000,000 in deposits, how much must it keep in reserve?
Question 8
A company is considering investing in a new business venture. Which of the following is a key consideration in the investment decision?
Question 9
A firm is considering two investment projects. Project A has a 10% chance of returning 100, a 60% chance of returning 50, and a 30% chance of returning 0. Project B has a 20% chance of returning 120, a 40% chance of returning 60, and a 40% chance of returning 0. Which project has a higher expected return?
Question 10
A company has a production function 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 11
A bank offers a 5-year fixed deposit account with an interest rate of 8% per annum compounded annually. If a customer deposits ₦100,000 at the beginning of the first year, how much will the customer have at the end of the fifth year?
Question 12
A firm is considering investing in a new marketing campaign to promote its product. The campaign will cost ₦10 million to implement and is expected to generate ₦20 million in revenue over the next 2 years. What is the payback period of the investment?
Question 13
A firm's revenue function is given by R = 100Q - 2Q^2, where Q is output. If the firm wants to maximize revenue, what is the optimal level of output?
Question 14
A company has a marketing budget of ₦500,000 and wants to allocate it among three advertising channels: TV, Radio, and Print. If the company wants to allocate 30% of the budget to TV, 20% to Radio, and 50% to Print, what is the total number of units sold if the company sells 100 units for every ₦10,000 spent on advertising?
Question 15
A company is considering launching a new product. Which of the following is a key consideration in the product development process?
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