ICAN Business, Management and Finance 2020
Past Questions

Harbour Bank Plc has a deeply embedded set of unwritten norms where employees are rewarded primarily for seniority rather than performance, and whistleblowers are informally ostracised. According to C…

Apex Telecoms Nigeria Plc is considering decentralising its decision-making authority to regional managers across its six geopolitical zone offices. Which of the following is the MOST significant orga…

The board of Crescent Insurance Company Limited, a public interest entity regulated by the National Insurance Commission (NAICOM), is debating whether to adopt a unitary (one-tier) or a two-tier board…

Tunde Adeyemi manages a team of 12 software engineers at SystemSpecs Limited in Lagos. He believes his engineers are inherently self-motivated, creative, and capable of self-direction when committed t…

An organisation uses the '360-degree appraisal' method to evaluate employee performance. Which of the following CORRECTLY describes this method?

A retail company in Abuja sells a product for ₦15,000 per unit. Variable cost per unit is ₦9,000 and fixed marketing costs total ₦3,600,000 per annum. What is the marketing break-even quantity (in uni…

Under the Value Added Tax Act Cap V1, LFN 2004 (as amended by the Finance Act 2020), which of the following marketing-related services supplied by a Nigerian advertising agency to a foreign client qua…

Alhaji Musa purchased a 182-day Nigerian Treasury Bill with a face value of ₦5,000,000 at a discount rate of 12% per annum. What is the purchase price of the Treasury Bill?

The Nigerian Exchange Group (NGX) operates a T+3 settlement cycle for equities transactions. If an investor sells shares on Monday, 5 June 2023, on which date would the transaction be expected to sett…

Zenith Capital Ltd is evaluating two financing options for a ₦500,000,000 project. Option I is 100% equity financing at a cost of 18%. Option II is 60% debt at 14% pre-tax and 40% equity at 18%. The c…

Zenith Capital Ltd is evaluating a financing option for a ₦500,000,000 project using 60% debt at a pre-tax cost of 14% and 40% equity at a cost of 18%. The company's effective income tax rate is 30%. …

Which of the following best describes a 'rights issue' as a source of finance for a quoted public company in Nigeria?

Enugu Farms Ltd, a small company, obtains invoice discounting on a ₦12,000,000 receivable. The finance house charges a 3% service fee and advances 80% of the invoice value immediately. What is the imm…

Under the provisions of the Companies and Allied Matters Act (CAMA) 2020, which of the following best describes the primary obligation of a company's directors regarding the management of working capi…

Kano Textiles Limited has annual sales of ₦120,000,000 (all on credit). Its current receivables collection period is 75 days. The company is considering offering a 1.5% early settlement discount to re…

Under IAS 7 (Statement of Cash Flows) as adopted by the Financial Reporting Council of Nigeria (FRCN), an increase in trade receivables during a reporting period is treated as which of the following i…

Port Harcourt Chemicals Plc uses the Economic Order Quantity (EOQ) model to manage its raw material inventory. Annual demand is 36,000 units, ordering cost is ₦2,500 per order, and the holding cost is…

Under the Financial Reporting Council of Nigeria (FRCN) Act 2011, which body is primarily responsible for promoting and enforcing ethical standards in financial reporting for public interest entities …

Under Section 394 of CAMA 2020, a public company is required to include a statement of corporate governance in its annual report. Which of the following is NOT a mandatory disclosure element under thi…

Gamma Oil Services Limited, a Nigerian company, pays ₦6,000,000 as a facilitation payment to a government official to expedite a routine export permit. The company argues this is a 'facilitation payme…

QUESTION 3 Federal Capital Territory Water Board (FCTWB) is a public sector entity responsible for water supply and distribution across the FCT. The Board employs approximately 1,200 staff and is org…

QUESTION 1 Adekunle Bello recently assumed the position of Managing Director of Greenfield Agro-Processing Limited, a medium-sized food manufacturing company headquartered in Kano. On resumption, he …

QUESTION 2 The Lagos State Government recently established the Lagos Urban Renewal Agency (LURA), a public sector entity charged with coordinating infrastructure development across Lagos metropolis. …

QUESTION 2 Oluwaseun Agro-Allied Limited (OAL) is a private limited liability company incorporated in Lagos, Nigeria. The company processes and exports cassava starch and earns revenues partly in USD…

QUESTION 1 Adekunle & Sons Limited is a Lagos-based manufacturing company that produces plastic packaging materials. In recent years, the company has come under public scrutiny for allegedly dumping …