POST UTME ACHIEVERS UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering exporting its products to a foreign market. What are the benefits of exporting?
A. Increased revenue, improved competitiveness
B. Reduced costs, improved market share
C. Improved brand recognition, increased customer loyalty
D. Reduced risk, improved cash flow
Question 2
Under the Consumer Protection Act of 1999, what is the primary responsibility of a consumer in a contract?
A. To ensure the product meets the manufacturer's specifications
B. To inspect the product before purchase
C. To report any defects or issues to the manufacturer
D. To negotiate the price of the product
Question 3
A company is considering the use of a logistics provider to manage its supply chain. What are the benefits of using a logistics provider?
A. Improved delivery times, reduced costs
B. Increased inventory levels, improved customer service
C. Improved forecasting, reduced waste
D. Reduced transportation costs, improved supplier relationships
Question 4
A ship's cargo capacity is 500 tons. If the ship is carrying a cargo of 300 tons of wheat and 200 tons of rice, what is the remaining capacity?
A. 0 tons
B. 100 tons
C. 200 tons
D. 300 tons
Question 5
The diagram below shows the demand and supply curves for a perfectly competitive market. What is the equilibrium price?
A. ₦10
B. ₦20
C. ₦30
D. ₦40
Question 6
In a sole trade business, what is the primary advantage of using a sole trader structure?
A. Limited liability
B. Easy to set up
C. Flexibility in decision-making
D. No tax benefits
Question 7
A company is considering launching a new product line. The marketing manager has identified three potential target markets: young adults, middle-aged adults, and seniors. The product development team has estimated the production costs and potential revenue for each target market. Which of the following marketing strategies would be most effective for the company?
A. Segmentation, targeting, and positioning (STP)
B. Market penetration, market development, and market diversification (3Cs)
C. Product differentiation and market expansion
D. Brand extension and market segmentation
Question 8
A consumer purchases a product with a price of ₦5,000 and pays a 5% sales tax. What is the amount of sales tax paid?
A. ₦200
B. ₦250
C. ₦300
D. ₦350
Question 9
A company is considering outsourcing its logistics to a third-party provider. What are the potential risks of this decision?
A. Loss of control, increased costs, and reduced flexibility
B. Increased efficiency, reduced costs, and improved customer satisfaction
C. No risks, high benefits, and good risk management
D. No risks, low benefits, and poor risk management
Question 10
A bank's liquidity ratio is calculated as the ratio of its liquid assets to its total deposits. If a bank has liquid assets worth ₦1.2 billion and total deposits of ₦2.5 billion, what is its liquidity ratio?
A. 0.48
B. 0.48
C. 0.48
D. 0.48
Question 11
A company is launching a new product and wants to create a marketing campaign. What type of advertising is most effective for new product launches?
A. Print advertising
B. Television advertising
C. Digital advertising
D. Event marketing
Question 12
A life insurance policy has a premium of ₦50,000 per annum. If the policyholder pays the premium for 5 years, what is the total premium paid?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 13
A firm is considering two production technologies: one that requires a high initial investment but results in lower production costs over time, and another that requires a low initial investment but results in higher production costs over time. Which of the following statements best describes the relationship between the two technologies?
A. The high initial investment technology is more capital-intensive than the low initial investment technology.
B. The low initial investment technology is more labor-intensive than the high initial investment technology.
C. The high initial investment technology has a higher marginal cost than the low initial investment technology.
D. The low initial investment technology has a higher fixed cost than the high initial investment technology.
Question 14
A company is considering launching a new product line. The marketing manager has identified three potential target markets: young adults, middle-aged adults, and seniors. The product development team has estimated the production costs and potential revenue for each target market. Which of the following marketing strategies would be most effective for the company?
A. Segmentation, targeting, and positioning (STP)
B. Market penetration, market development, and market diversification (3Cs)
C. Product differentiation and market expansion
D. Brand extension and market segmentation
Question 15
In a perfectly competitive market, the supply curve is upward-sloping because
A. Firms are willing to supply more of a good as its price increases.
B. Firms are willing to supply less of a good as its price increases.
C. Firms are willing to supply more of a good as its price decreases.
D. Firms are willing to supply less of a good as its price decreases.

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