POST UTME AAUA 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering investing in a new market. The company's management team has identified the following factors as potential risks: political instability, economic downturn, and cultural differences. Which of the following risk management strategies would be most appropriate for this company?
A. Diversification
B. Hedging
C. Risk avoidance
D. Risk transfer
Question 2
A company is considering entering a new market. The company's management team has identified the following factors as potential opportunities: growing demand, increasing competition, and changing consumer preferences. Which of the following market research techniques would be most appropriate for this company?
A. SWOT analysis
B. PESTEL analysis
C. Porter's five forces analysis
D. Market segmentation analysis
Question 3
A bank offers a 5-year fixed deposit account with an interest rate of 10% per annum compounded annually. If the initial deposit is ₦100,000, what will be the future value of the investment after 5 years?
A. ₦163,918.62
B. ₦164,918.62
C. ₦165,918.62
D. ₦166,918.62
Question 4
A company's insurance policy covers the following risks: fire, theft, and liability. Which of the following is the most expensive risk to insure?
A. Fire
B. Theft
C. Liability
D. All of the above
Question 5
The ______ of a firm's production function is the rate at which output changes when one input is changed, while holding all other inputs constant.
A. marginal product
B. marginal revenue product
C. marginal cost
D. marginal utility
Question 6
A ______ is a diagram that shows the relationship between two variables, with one variable on the x-axis and the other variable on the y-axis.
A. scatter plot
B. bar chart
C. pie chart
D. histogram
Question 7
A company is considering the purchase of a new machine that costs ₦1,500,000. The machine is expected to last for 5 years and reduce maintenance costs by ₦200,000 per year. What is the net present value (NPV) of the machine, assuming a discount rate of 10%?
A. ₦1,200,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 8
A company's insurance premium is ₦500,000. If the company has a deductible of ₦200,000, what is the company's net insurance premium?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 9
A consumer purchases a product with a list price of ₦10,000. The consumer is offered a 20% discount. What is the final price paid by the consumer?
A. ₦8,000
B. ₦8,500
C. ₦9,000
D. ₦9,500
Question 10
The concept of 'moral hazard' in insurance refers to the situation where
A. A policyholder takes unnecessary risks because they are insured
B. An insurer takes unnecessary risks because they are insured
C. A policyholder takes necessary risks because they are insured
D. An insurer takes necessary risks because they are insured
Question 11
A life insurance policy pays ₦1 million to the beneficiary if the policyholder dies within the next 5 years. The probability of the policyholder dying within the next 5 years is 0.05. What is the expected value of the insurance policy?
A. ₦50,000
B. ₦500,000
C. ₦1 million
D. ₦5 million
Question 12
A sole trader is considering expanding their business by hiring additional staff. What type of business organization would be most suitable for this expansion?
A. Partnership
B. Limited company
C. Sole trader
D. Cooperative
Question 13
What is the primary function of the International Chamber of Commerce (ICC) in facilitating international trade?
A. To provide a platform for governments to negotiate trade agreements
B. To promote the use of international trade standards and practices
C. To facilitate the resolution of trade disputes between countries
D. To provide financing for international trade transactions
Question 14
In a sole trade business, what is the primary advantage of adopting a sole proprietorship structure?
A. Limited liability
B. Easy to establish
C. Flexibility in decision-making
D. Tax benefits
Question 15
The diagram below shows a typical example of a
A. Photosynthesis process
B. Respiration process
C. Transpiration process
D. Osmosis process

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