POST UTME AAUA 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering two different marketing strategies for its new product. Strategy A involves a high upfront investment in advertising, while Strategy B involves a lower upfront investment but higher ongoing costs. Which strategy would you recommend, and why?
A. Strategy A is the better choice because it provides a higher return on investment.
B. Strategy B is the better choice because it provides a lower upfront cost.
C. Both strategies are equally effective and the choice depends on the company's specific circumstances.
D. Neither strategy is effective and the company should consider a different approach.
Question 2
The _______ of a firm refers to the process of creating and communicating value to customers.
A. marketing
B. advertising
C. public relations
D. sales
Question 3
In a sole trade business, what is the primary advantage of using a sole trader structure?
A. Limited liability
B. Unlimited liability
C. Easy to set up
D. Flexibility in decision-making
Question 4
A commercial bank's primary objective is to maximize shareholder value, but this may conflict with its social responsibility to provide financial services to the community. Which of the following is a potential consequence of prioritizing shareholder value over social responsibility?
A. Increased profits for the bank
B. Reduced access to financial services for low-income households
C. Improved reputation for the bank
D. Increased competition from other banks
Question 5
A company's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. This approach is an example of which of the following marketing concepts?
A. Product Differentiation
B. Segmentation
C. Target Marketing
D. Positioning
Question 6
A company produces two products, A and B, using two inputs, labor and capital. The production function for product A is given by Q_A = 2L^0.5K^0.5, while the production function for product B is given by Q_B = 3L^0.7K^0.3. If the company has 100 units of labor and 50 units of capital available, how many units of product A and product B should it produce to maximize profits?
A. Q_A = 20, Q_B = 30
B. Q_A = 30, Q_B = 20
C. Q_A = 25, Q_B = 25
D. Q_A = 15, Q_B = 35
Question 7
A company has a production cost of ₦1,000 per unit and a selling price of ₦1,200 per unit. If the company produces 1,000 units, what is the profit?
A. ₦100000
B. ₦200000
C. ₦300000
D. ₦400000
Question 8
A company is considering entering a new market. Which of the following is a key consideration in the market selection process?
A. Size of the market
B. Growth rate of the market
C. Level of competition in the market
D. All of the above
Question 9
The concept of risk management in insurance is closely related to the idea of diversification. Explain how diversification can help reduce risk in an insurance portfolio.
A. Diversification can help reduce risk by spreading investments across different asset classes, reducing exposure to any one particular risk.
B. Diversification can increase risk by concentrating investments in a single asset class, increasing exposure to potential losses.
C. Diversification has no impact on risk in an insurance portfolio.
D. Diversification can only be applied to investment portfolios, not insurance portfolios.
Question 10
A company is considering launching a new product in a foreign market. The company has estimated that the product will generate annual sales of ₦5 million for the next 3 years. If the company's cost of capital is 12%, what is the present value of the expected cash flows?
A. ₦12,000,000
B. ₦15,000,000
C. ₦18,000,000
D. ₦20,000,000
Question 11
A firm is considering investing in a new marketing campaign. The campaign will require an initial investment of ₦3 million and will generate annual returns of ₦1.5 million for the next 2 years. If the firm's cost of capital is 8%, what is the net present value of the investment?
A. ₦2,000,000
B. ₦3,000,000
C. ₦4,000,000
D. ₦5,000,000
Question 12
A sole trader's business is affected by a natural disaster that destroys a significant portion of its inventory. The sole trader has insurance coverage for such events. Which of the following is a characteristic of this type of insurance?
A. Contingent Liability
B. Uninsurable Risk
C. Specified Peril
D. Uninsurable Loss
Question 13
A company is considering launching a new product in a foreign market. The company has conducted market research and determined that the demand for the product is elastic. What is the implication of this finding for the company's pricing strategy?
A. The company should set a high price for the product to maximize profits.
B. The company should set a low price for the product to maximize market share.
C. The company should set a price that is close to the average price of competing products.
D. The company should not launch the product in the foreign market.
Question 14
A producer specializes in producing two goods, X and Y. The production function for good X is given by Qx = 2L + 3K, where L is labor and K is capital. The production function for good Y is given by Qy = 4L + 2K. If the producer has 10 units of labor and 5 units of capital, what is the total output of the producer?
A. 20 units
B. 25 units
C. 30 units
D. 35 units
Question 15
A company has 100,000 shares issued and outstanding. If 80% of the shares are held by the public, how many shares are held by the public?
A. 80000
B. 90000
C. 100000
D. 120000

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