POST UTME FUTA 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering a new production process that will increase its output by 20% but also increase its costs by 15%. What is the expected change in the company's profit?
A. Increase by 5%
B. Decrease by 5%
C. Increase by 10%
D. Decrease by 10%
Question 2
A company is considering outsourcing its production to a foreign country. What is the primary benefit of outsourcing?
A. Reduced labor costs
B. Increased market share
C. Improved quality control
D. Enhanced brand reputation
Question 3
A firm's cost of capital is the minimum rate of return that investors require in exchange for
A. equity and debt financing
B. equity financing only
C. debt financing only
D. operating expenses
Question 4
A company is considering entering into a contract with a supplier. The contract specifies that the supplier will deliver a certain quantity of goods to the company within a specified timeframe. What is the primary factor that the company should consider when deciding whether to enter into the contract?
A. The price of the goods
B. The quality of the goods
C. The reliability of the supplier
D. The delivery timeframe
Question 5
A firm is producing a product with the following demand function: Q = 100 - 2P. If the firm's cost function is C(x) = 2x^2 + 100x + 5000, what is the optimal price to charge to maximize profit?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 6
The diagram below shows the production possibilities frontier for a country. Which of the following statements is true?
A. The country is currently producing at point A
B. The country is currently producing at point B
C. The country is currently producing at point C
D. The country is not producing at any point on the frontier
Question 7
A consumer protection law requires businesses to provide a 30-day cooling-off period for customers to return goods. What is the primary purpose of this law?
A. To protect consumers from faulty goods.
B. To protect businesses from fraudulent customers.
C. To provide consumers with a chance to review goods before purchasing.
D. To promote competition among businesses.
Question 8
A company's marketing strategy involves a 20% discount on all products for the first 100 customers. If the company sells 200 units of a product at the discounted price, and each unit sells for ₦1,000, what is the total revenue generated?
A. ₦180,000
B. ₦200,000
C. ₦220,000
D. ₦240,000
Question 9
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases its labor input from 100 to 121 units, and its capital input from 100 to 121 units, by how much will the quantity produced increase?
A. 10%
B. 20%
C. 30%
D. 40%
Question 10
A sole trader's business is affected by the following factors: market demand, competition, and government regulations. Which of the following business units is most likely to be affected by these factors?
A. Sole Trader
B. Partnership
C. Limited Liability Company
D. Cooperative Society
Question 11
A company's insurance policy covers the following risks: fire, theft, and liability. Which of the following types of insurance is most likely to cover these risks?
A. Fire Insurance
B. Theft Insurance
C. Liability Insurance
D. All Risk Insurance
Question 12
A company is considering entering a new market. What type of risk is the company most likely to encounter?
A. Financial risk
B. Operational risk
C. Market risk
D. Strategic risk
Question 13
In a sole trade business, the owner's personal assets are not protected from business liabilities. What is the primary reason for this?
A. The business is not registered as a separate legal entity.
B. The owner has not obtained necessary licenses and permits.
C. The business is not insured against liabilities.
D. The owner has not separated personal and business finances.
Question 14
A sole trader is considering hiring an employee. What is the primary advantage of hiring an employee?
A. Increased profit
B. Reduced workload
C. Improved productivity
D. Enhanced reputation
Question 15
A company's marketing strategy involves creating a brand identity that appeals to a specific demographic. Which of the following marketing tools is most likely to be used in this strategy?
A. Social Media Advertising
B. Influencer Marketing
C. Content Marketing
D. Event Marketing

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