POST UTME PAN-ATLANTIC UNIVERSITY 2020 Commerce | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company is considering forming a partnership with another company to expand its operations. The partnership agreement will be governed by the Partnership Act. Which of the following provisions of the Partnership Act is most relevant to this situation?
Question 2
A firm's production function is given by Q = 10L^0.5K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
Question 3
In a sole trade business, what is the primary advantage of using a sole proprietorship structure?
Question 4
A bank offers a loan with a 5-year term and an annual interest rate of 10%. If the borrower pays ₦100,000 as the principal amount, how much will the borrower pay in total at the end of the 5-year term?
Question 5
A company uses a just-in-time (JIT) inventory system to manage its inventory. Which of the following is a key benefit of a JIT inventory system?
Question 6
A firm's revenue function is given by R = 100Q - 2Q^2. Find the firm's marginal revenue function.
Question 7
A company's foreign exchange risk can be hedged using a forward contract. If the company expects to receive 100,000 in 6 months and the spot exchange rate is 1 = ₦200, what is the value of the forward contract?
Question 8
A company's sole trader has a warehouse with a capacity of 10,000 units. If the company's stock control system is based on a first-in-first-out (FIFO) method, and the current stock level is 8,000 units, what is the maximum number of units that can be added to the warehouse without exceeding its capacity?
Question 9
In a perfectly competitive market, the law of one price dictates that the price of a commodity will be the same everywhere, ceteris paribus. However, in reality, prices may differ due to various factors. What is the primary reason for this price disparity?
Question 10
A company uses a just-in-time (JIT) inventory system to manage its inventory. Which of the following is a potential consequence of a JIT inventory system?
Question 11
In a just-in-time (JIT) inventory system, the primary goal is to maintain a low level of inventory to minimize holding costs. However, this approach can lead to stockouts, which can result in lost sales and damage to customer relationships. Which of the following is a potential consequence of a JIT inventory system?
Question 12
A company uses the weighted average cost of capital (WACC) method to calculate its cost of capital. If the company's cost of debt is 8% and its cost of equity is 12%, and the company has a tax rate of 25%, what is its WACC?
Question 13
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. Using the budget constraint, find the consumer's optimal consumption bundle.
Question 14
A firm is considering two different marketing strategies: A and B. Strategy A has a probability of success of 0.7 and a probability of failure of 0.3. Strategy B has a probability of success of 0.8 and a probability of failure of 0.2. If the firm's objective is to maximize expected profit, which strategy should it choose?
Question 15
A firm's production function is given by the following equation: Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
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