POST UTME PAN-ATLANTIC UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a total of 100,000 shares outstanding, with a par value of ₦10 per share. If the company issues 20,000 new shares at a premium of ₦50 per share, what is the total amount of additional capital raised?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 2
A firm is considering the introduction of a new product line. The product requires a significant investment in new equipment and training for employees. However, the company expects the product to generate a high profit margin. Which of the following is the most appropriate decision-making approach for the company?
A. Cost-benefit analysis
B. Break-even analysis
C. Decision tree analysis
D. Sensitivity analysis
Question 3
A consumer protection agency receives a complaint about a company's unfair business practices. The agency's primary goal in investigating the complaint is to determine whether the company has engaged in:
A. False advertising
B. Unfair competition
C. Deceptive business practices
D. Price fixing
Question 4
A firm is considering the introduction of a new product line. The product requires a significant investment in new equipment and training for employees. However, the company expects the product to generate a high profit margin. Which of the following is the most appropriate decision-making approach for the company?
A. Cost-benefit analysis
B. Break-even analysis
C. Decision tree analysis
D. Sensitivity analysis
Question 5
A company is considering the introduction of a new product line. The product requires a significant investment in new equipment and training for employees. However, the company expects the product to generate a high profit margin. Which of the following is the most appropriate decision-making approach for the company?
A. Cost-benefit analysis
B. Break-even analysis
C. Decision tree analysis
D. Sensitivity analysis
Question 6
A company is considering investing in a new project that has a projected return on investment (ROI) of 15%. If the company's cost of capital is 10%, what is the net present value (NPV) of the project?
A. ₦1 million
B. ₦2 million
C. ₦3 million
D. ₦4 million
Question 7
A firm is considering entering a new market with a new product. The firm's marketing manager has estimated that the product will have a market share of 20% in the first year, with the market share increasing by 5% each subsequent year. If the firm expects to produce 50,000 units in the first year, how many units will it produce in the fifth year?
A. 25,000
B. 50,000
C. 75,000
D. 100,000
Question 8
A company's financial statements show that it has a net worth of ₦50 million and a total liability of ₦30 million. What is the company's equity?
A. ₦20 million
B. ₦30 million
C. ₦40 million
D. ₦50 million
Question 9
A firm's demand function is given by P = 100 - 2Q, where P is the price and Q is the quantity demanded. If the firm wants to maximize its profit, what is the optimal quantity to produce?
A. 20
B. 30
C. 40
D. 50
Question 10
A firm's revenue function is given by R = 100Q - 2Q^2, where R is the total revenue and Q is the quantity sold. If the firm sells 20 units of output, what is the total revenue?
A. 1400
B. 1600
C. 1800
D. 2000
Question 11
A bank's financial statements show a decrease in cash reserves due to an increase in customer deposits. However, the bank's liquidity ratio has also decreased. What is the likely reason for this decrease?
A. Increased lending activities
B. Higher interest rates
C. Reduced customer deposits
D. Increased cash reserves
Question 12
A firm is considering the introduction of a new product line. The product requires a significant investment in new equipment and training for employees. However, the company expects the product to generate a high profit margin. Which of the following is the most appropriate decision-making approach for the company?
A. Cost-benefit analysis
B. Break-even analysis
C. Decision tree analysis
D. Sensitivity analysis
Question 13
A company's sole trader is considering expanding its operations to include a new product line. However, this expansion will require an initial investment of ₦5 million. If the company's current profit margin is 20%, and it expects to sell the new product line at a price that will yield a 30% profit margin, what is the minimum amount of additional capital the company needs to raise to break even on the new product line?
A. ₦1.25 million
B. ₦2.5 million
C. ₦3.75 million
D. ₦5 million
Question 14
A sole trader's business is owned and operated by a single individual. Which of the following is a characteristic of a sole trader's business?
A. It is a partnership
B. It is a limited company
C. It is owned and operated by a single individual
D. It is a cooperative
Question 15
A company is considering two different production processes for its product. Process A has a higher fixed cost but a lower variable cost per unit, while Process B has a lower fixed cost but a higher variable cost per unit. Which process should the company choose if it expects to produce 10,000 units?
A. Process A
B. Process B
C. It depends on the expected price of the product
D. Neither process is suitable

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