POST UTME NILE UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a revenue function R = 200Q - 2Q^2, where Q is the quantity sold. What is the maximum revenue?
A. ₦4000
B. ₦5000
C. ₦6000
D. ₦7000
Question 2
A company's sole trader has a business income of ₦300,000 and expenses of ₦220,000. Calculate the sole trader's profit before tax.
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 3
A sole trader, Mr. Ade, sells goods worth ₦250,000 in a month. His expenses are 20% of the sales value. Calculate the profit made by Mr. Ade.
A. ₦50,000
B. ₦60,000
C. ₦62,500
D. ₦65,000
Question 4
A company's sole trader has a business income of ₦500,000 and expenses of ₦380,000. Calculate the sole trader's profit before tax.
A. ₦120,000
B. ₦130,000
C. ₦140,000
D. ₦150,000
Question 5
A bank is considering two different investment options for its clients. Option A involves a high-risk, high-return investment, while Option B involves a low-risk, low-return investment. Which of the following is a potential advantage of Option A?
A. Increased potential returns
B. Decreased risk
C. Improved liquidity
D. Increased regulatory compliance
Question 6
A company is considering two different insurance options for its employees. Option A involves a high level of coverage, while Option B involves a low level of coverage. Which of the following is a potential advantage of Option A?
A. Increased employee satisfaction
B. Decreased employee turnover
C. Improved employee productivity
D. Increased regulatory compliance
Question 7
The Consumer Protection Act of 1999 provides for the establishment of the Consumer Protection Council. What is the primary function of the Consumer Protection Council?
A. To promote consumer awareness and education
B. To regulate consumer transactions and protect consumers from unfair business practices
C. To provide a forum for consumers to resolve disputes with businesses
D. To conduct research on consumer behavior and preferences
Question 8
A business organization is considering the use of a just-in-time inventory system. What are the benefits of this system?
A. Reduced inventory costs, improved product quality, and increased customer satisfaction
B. Increased inventory costs, reduced product quality, and decreased customer satisfaction
C. No change in inventory costs, product quality, or customer satisfaction
D. Reduced inventory costs, decreased product quality, and decreased customer satisfaction
Question 9
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,500,000, and the total cost of goods sold is ₦1,200,000. Calculate the cost of goods sold using the weighted average method.
A. ₦1,100,000
B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000
Question 10
A consumer purchases a product with a recommended retail price of ₦5,000. If the consumer is offered a discount of 10% and a cashback of 5%, what is the final amount paid by the consumer?
A. ₦4,250
B. ₦4,375
C. ₦4,500
D. ₦4,625
Question 11
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?
A. ₦100, 100 units
B. ₦120, 80 units
C. ₦150, 60 units
D. ₦180, 40 units
Question 12
A company is considering the introduction of a new product line. The product line requires an initial investment of ₦4 million and is expected to generate annual profits of ₦1.5 million for the next 4 years. The company's cost of capital is 8% per annum. What is the internal rate of return (IRR) of the new product line?
A. 12%
B. 15%
C. 18%
D. 20%
Question 13
A company is considering the introduction of a new product line. The product line requires an initial investment of ₦6 million and is expected to generate annual profits of ₦2.5 million for the next 6 years. The company's cost of capital is 12% per annum. What is the payback period of the new product line?
A. 4 years
B. 5 years
C. 6 years
D. 7 years
Question 14
A company has a market share of 30% in the industry. If the company wants to increase its market share by 5%, what is the new market share?
A. 35%
B. 40%
C. 45%
D. 50%
Question 15
A company is considering the introduction of a new product line. The product line requires an initial investment of ₦5 million and is expected to generate annual profits of ₦2 million for the next 5 years. The company's cost of capital is 10% per annum. What is the net present value (NPV) of the new product line?
A. ₦8,000,000
B. ₦10,000,000
C. ₦12,000,000
D. ₦15,000,000

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