POST UTME EKSU 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer has the right to request a refund or replacement for a defective product under the Consumer Protection Act. Which of the following is a condition for making such a request?
A. The product must be within its warranty period
B. The consumer must have purchased the product from the manufacturer
C. The product must be defective due to a manufacturing fault
D. The consumer must have used the product for its intended purpose
Question 2
A bank's financial statement shows a decrease in cash and cash equivalents. Which of the following is a likely explanation?
A. Increased cash outflows
B. Decreased cash inflows
C. Investment in securities
D. Acquisition of assets
Question 3
A company's marketing mix involves a product with a unique feature. Which of the following is a key benefit?
A. Increased brand loyalty
B. Improved customer satisfaction
C. Enhanced product differentiation
D. Better market share
Question 4
A company's marketing strategy involves creating a perceived value for its products through advertising and branding. This approach is an example of which of the following?
A. Product differentiation
B. Market segmentation
C. Positioning
D. Branding
Question 5
A warehouse's inventory management system uses the First-In-First-Out (FIFO) method to track stock levels. What is the primary advantage of using FIFO?
A. It ensures that the oldest stock is sold first
B. It minimizes stock obsolescence
C. It maximizes stock turnover
D. It reduces stock holding costs
Question 6
A consumer protection law requires businesses to provide clear and accurate information about their products. What is the primary purpose of this law?
A. To protect consumers from false advertising
B. To ensure that businesses comply with product safety standards
C. To promote fair competition among businesses
D. To regulate business practices
Question 7
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is a key benefit of using a mix of these strategies?
A. Increased brand awareness
B. Improved customer loyalty
C. Enhanced product differentiation
D. Better market share
Question 8
A firm is considering two different production technologies: one that uses a lot of labor and another that uses a lot of capital. Which technology would be more suitable for a firm that has a large supply of labor but limited capital?
A. The technology that uses a lot of labor.
B. The technology that uses a lot of capital.
C. Both technologies are equally suitable.
D. Neither technology is suitable.
Question 9
A firm is considering the introduction of a new product. The product will require an initial investment of ₦400 million and will generate annual revenues of ₦1.1 billion for the next 3 years. The firm's cost of capital is 12% per annum. What is the net present value (NPV) of the product?
A. ₦2.5 billion
B. ₦3.5 billion
C. ₦4.5 billion
D. ₦5.5 billion
Question 10
A company is considering outsourcing its logistics operations to a third-party provider. What is the primary benefit of outsourcing logistics?
A. Reduced transportation costs
B. Improved delivery times
C. Enhanced supply chain visibility
D. Increased flexibility
Question 11
A firm is considering two different distribution channels: one that uses a direct sales force and another that uses a indirect sales force. Which channel would be more suitable for a firm that has a large geographic area to cover?
A. The channel that uses a direct sales force.
B. The channel that uses an indirect sales force.
C. Both channels are equally suitable.
D. Neither channel is suitable.
Question 12
A sole trader is considering expanding their business by taking on a partner. What is the primary advantage of forming a partnership?
A. Increased financial resources
B. Improved decision-making
C. Enhanced reputation
D. Reduced personal liability
Question 13
A company is considering two different pricing strategies: one that uses a high price and another that uses a low price. Which strategy would be more suitable for a company that wants to maximize its profits?
A. The strategy that uses a high price.
B. The strategy that uses a low price.
C. Both strategies are equally suitable.
D. Neither strategy is suitable.
Question 14
A company is considering the introduction of a new product line. The product line will require an initial investment of ₦500 million and will generate annual revenues of ₦1.2 billion for the next 5 years. The company's cost of capital is 10% per annum. What is the net present value (NPV) of the product line?
A. ₦2.5 billion
B. ₦3.5 billion
C. ₦4.5 billion
D. ₦5.5 billion
Question 15
A business organization is considering the use of electronic data interchange (EDI) to improve its supply chain management. What is the primary benefit of EDI?
A. Improved communication between trading partners
B. Increased efficiency in data processing
C. Reduced costs associated with paper-based transactions
D. Enhanced security of data transmission

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