POST UTME COVENANT UNIVERSITY 2024 Commerce | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company has a production function given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor input, and K is the capital input. If the company wants to produce 100 units of output, how many units of labor should it hire?
Question 2
A company is considering the implementation of a just-in-time (JIT) inventory system. Which of the following is a key benefit of JIT?
Question 3
A company uses the following transportation modes: road, rail, air. The cost of road transportation is ₦500 per kilometer, rail transportation is ₦300 per kilometer, and air transportation is ₦1,000 per kilometer. If the company travels 200 kilometers by road, 300 kilometers by rail, and 100 kilometers by air, what is the total transportation cost?
Question 4
A bank offers a loan with an interest rate of 12% per annum compounded annually. If the loan amount is ₦500,000 and the loan is repaid after 5 years, what is the total amount paid by the borrower?
Question 5
A firm is considering exporting its products to a foreign market. Which of the following is a key factor to consider when evaluating the feasibility of this decision?
Question 6
A company is considering a new investment opportunity in a foreign market. The investment requires an initial outlay of ₦500 million and is expected to generate a return of 15% per annum. However, there is a 20% chance that the investment will fail and result in a loss of ₦200 million. What is the expected return on investment?
Question 7
A consumer is considering purchasing a product with a warranty. Which of the following is a key aspect of the warranty that the consumer should be aware of?
Question 8
A company has a fleet of 10 vehicles, each with a capacity of 5 tons. If the company is transporting goods that weigh an average of 2 tons per vehicle, what is the total weight of goods being transported?
Question 9
A firm is considering the use of a letter of credit to facilitate an international trade transaction. Which of the following is a key benefit of this arrangement?
Question 10
A company's warehouse is experiencing a high rate of stock loss due to inadequate storage facilities. Which of the following warehousing techniques would be most effective in reducing stock loss?
Question 11
A company purchases a liability insurance policy to protect against potential lawsuits. The policy has a deductible of ₦100,000 and a premium of ₦500,000. If the company is sued for ₦750,000, what is the total cost of the insurance policy?
Question 12
A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300 respectively. The consumer's indifference curves are given by the equation ( U = 2A + 3B ). Find the consumer's optimal consumption bundle.
Question 13
A firm is considering the introduction of a new product. The product has a market size of 100,000 units and a market growth rate of 10% per annum. The firm's marketing budget is ₦500,000. What is the minimum price that the firm should charge for the product to ensure a profit?
Question 14
A sole trader's business is given by the equation R = 2,000 + 50Q - 0.5Q^2, where R is the revenue and Q is the quantity sold. If the sole trader wants to maximize revenue, what is the optimal quantity to sell?
Question 15
A consumer has purchased a product for ₦10,000 and has been charged a 5% sales tax. If the consumer has paid ₦11,000, how much of the payment is tax?
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