POST UTME MADONNA UNIVERSITY 2018 Commerce | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the units of labor, and K is the units of capital. If the company wants to increase its production by 20% while keeping labor constant, what percentage increase in capital is required?
Question 2
A company has a production process with a fixed cost of ₦500,000 and a variable cost of ₦100 per unit. If the selling price is ₦150 per unit, what is the break-even point?
Question 3
A sole trader is considering the purchase of a new business premises. The premises is currently occupied by a tenant who has a 5-year lease remaining. What type of risk is the sole trader exposed to?
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If labor and capital are increased by 20% and 15% respectively, calculate the percentage change in output.
Question 5
The concept of 'caveat emptor' is most closely associated with which of the following?
Question 6
A firm is considering the purchase of a new machine. The machine costs ₦3,000,000 and has a useful life of 8 years. The firm expects to earn an annual revenue of ₦1,200,000 from the machine. The firm's tax rate is 30%. What is the present value of the future cash flows from the machine, using a discount rate of 12%?
Question 7
A company's sole trader is considering the purchase of a new vehicle. The vehicle costs ₦2,500,000 and has a useful life of 5 years. The company expects to earn an annual revenue of ₦900,000 from the vehicle. The company's tax rate is 20%. What is the present value of the future cash flows from the vehicle, using a discount rate of 15%?
Question 8
A company's marketing strategy involves creating a brand identity that is consistent across all channels. What is the primary goal of this strategy?
Question 9
A company's marketing strategy involves a 30% increase in advertising expenditure. If the initial advertising expenditure was ₦1,500,000, calculate the new advertising expenditure.
Question 10
A consumer protection agency receives a complaint about a company's misleading advertising. What is the primary action the agency should take?
Question 11
A company has a capital structure consisting of 60% debt and 40% equity. The cost of debt is 8%, and the cost of equity is 12%. What is the weighted average cost of capital (WACC)?
Question 12
A company is considering the purchase of an insurance policy to protect against potential losses due to natural disasters. Which of the following types of insurance would be most suitable for this purpose?
Question 13
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's revenue is given by R = PQ, find the price at which the firm's revenue is maximized.
Question 14
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity of the product?
Question 15
A consumer has a budget of ₦1,000,000 and a utility function given by U(x,y) = 2x + 3y. The prices of x and y are ₦500 and ₦200, respectively. What is the optimal bundle of x and y that maximizes utility?
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