POST UTME EKSU 2019 Commerce | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm specializes in producing only one product. This specialization allows the firm to achieve economies of scale in production. However, it also means that the firm is vulnerable to fluctuations in demand for that product. What is the name of this phenomenon?
Question 2
A firm'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 firm produces 50 units, what is the profit?
Question 3
A company's insurance policy has a deductible of ₦5,000. If the company incurs a loss of ₦20,000, how much will they pay in premiums?
Question 4
A sole trader's business is considered a separate legal entity from its owner. What is the implication of this separation?
Question 5
A company is considering the introduction of a new marketing strategy. The strategy is expected to generate additional revenue of ₦1 billion in the first year, ₦1.2 billion in the second year, and ₦1.5 billion in the third year. However, the company also expects to incur additional costs of ₦500 million in the first year, ₦600 million in the second year, and ₦700 million in the third year. If the company's cost of capital is 12%, calculate the internal rate of return (IRR) of the new marketing strategy.
Question 6
A firm has a warehouse with a capacity of 10,000 units. The firm receives a shipment of 5,000 units. What is the new level of inventory?
Question 7
A bank's interest rate on a savings account is 5% per annum. If a customer deposits ₦100,000 into the account, how much interest will the customer earn in one year?
Question 8
A sole trader, Mr. B, has a business that generates an annual revenue of ₦1.8 million and an annual expense of ₦1.5 million. If Mr. B's business is taxed at a rate of 20%, calculate the amount of tax payable by Mr. B.
Question 9
A company is considering two different insurance policies to cover its business operations. Policy A has a premium of ₦1,500 per year and a deductible of ₦5,000. Policy B has a premium of ₦2,000 per year and a deductible of ₦2,000. If the company expects to incur an average annual loss of ₦10,000, which policy should it choose?
Question 10
A bank's balance sheet is given by the equation Assets = Liabilities + Equity. If the bank's assets increase by 10% and its liabilities increase by 5%, what is the percentage change in its equity?
Question 11
A company's cost function is given by C(x) = 50x + 20x^2, where x is the number of units produced. If the company produces 100 units, what is the total cost?
Question 12
A company's Memorandum of Association (MOA) is a document that outlines the company's
Question 13
A bank's reserve requirement is 10% of its total deposits. If the bank has ₦10,000,000 in total deposits, how much must it keep in reserve?
Question 14
A company is considering expanding its production capacity to meet increasing demand. The company has two options: Option A, which involves investing in new machinery and hiring additional staff, or Option B, which involves outsourcing production to a third-party supplier. What should the company do?
Question 15
A company has a business that generates an annual revenue of ₦2.5 million and an annual expense of ₦2 million. If the company's business is taxed at a rate of 25%, calculate the amount of tax payable by the company.
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