POST UTME FUTA 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The concept of 'caveat emptor' is a fundamental principle in consumer protection. What does this Latin phrase mean, and how does it relate to the rights of consumers in Nigeria?
A. Let the buyer beware, and it implies that consumers have no rights in Nigeria.
B. Let the buyer beware, and it implies that consumers have limited rights in Nigeria.
C. Let the seller beware, and it implies that consumers have full rights in Nigeria.
D. Let the consumer beware, and it implies that consumers have no rights in Nigeria.
Question 2
A firm's financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP). Which of the following financial statements is used to show the firm's financial position at a specific point in time?
A. Balance Sheet
B. Income Statement
C. Cash Flow Statement
D. Statement of Changes in Equity
Question 3
A company is considering the introduction of a new product line. The marketing manager has identified three target markets: A, B, and C. Which of the following marketing strategies would be most effective in reaching market A?
A. Direct mail marketing
B. Social media advertising
C. Influencer marketing
D. Trade show participation
Question 4
A warehouse manager wants to store 500 boxes of goods in a warehouse with a capacity of 2,000 boxes. The warehouse has a storage area of 10m x 5m. What is the maximum number of boxes that can be stored per square meter?
A. 10 boxes/m²
B. 20 boxes/m²
C. 30 boxes/m²
D. 40 boxes/m²
Question 5
In a perfectly competitive market, the supply curve is perfectly elastic. What is the implication of this on the price elasticity of demand?
A. The price elasticity of demand is perfectly inelastic.
B. The price elasticity of demand is perfectly elastic.
C. The price elasticity of demand is unit elastic.
D. The price elasticity of demand is not affected.
Question 6
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing
A. diminishing marginal opportunity cost
B. increasing marginal opportunity cost
C. diminishing marginal product
D. increasing marginal product
Question 7
A company is considering two different production methods for its new product. Method A involves a higher initial investment but results in lower production costs per unit. Method B involves a lower initial investment but results in higher production costs per unit. If the company expects to produce 10,000 units in the first year, which method should it choose if it wants to minimize its total production costs?
A. Method A
B. Method B
C. Both methods are equally cost-effective
D. More information is needed to make a decision
Question 8
A company has a warehouse with a capacity of 10,000 units. The company receives a shipment of 5,000 units and wants to store them in the warehouse. If the warehouse is already 75% full, what is the maximum number of additional units that the company can store in the warehouse?
A. 1,250 units
B. 2,500 units
C. 3,750 units
D. 5,000 units
Question 9
A company has a production cost of ₦5,000,000 and a selling price of ₦7,000,000. What is the profit margin?
A. 25%
B. 30%
C. 35%
D. 40%
Question 10
A sole trader is considering the incorporation of a new business. What are the primary advantages of incorporation?
A. Limited liability, ease of transfer of ownership, and increased credibility
B. Increased tax liability, reduced flexibility, and decreased credibility
C. Reduced liability, increased flexibility, and decreased credibility
D. Increased liability, reduced flexibility, and increased credibility
Question 11
A company in Nigeria is considering exporting its products to the United States. What are the potential advantages and disadvantages of exporting to the US market?
A. Advantages: increased revenue, reduced competition; Disadvantages: high transportation costs, cultural differences.
B. Advantages: increased revenue, reduced competition; Disadvantages: high transportation costs, cultural differences, and language barriers.
C. Advantages: increased revenue, reduced competition; Disadvantages: high transportation costs, cultural differences, and language barriers, and regulatory hurdles.
D. Advantages: increased revenue, reduced competition; Disadvantages: high transportation costs, cultural differences, and language barriers, and regulatory hurdles, and exchange rate risks.
Question 12
A firm's foreign exchange risk arises from fluctuations in the exchange rate between the naira and the US dollar. Which of the following hedging strategies is most effective in managing this risk?
A. Forward Contract
B. Futures Contract
C. Options Contract
D. Swap Contract
Question 13
A company's marketing strategy involves creating a new product to target a specific segment of the market. Which of the following marketing mix elements is most relevant to this strategy?
A. Product
B. Price
C. Promotion
D. Place
Question 14
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm wants to produce 16 units of output, how many units of labor are required if K = 4?
A. 4
B. 8
C. 16
D. 32
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, what is the marginal product of capital?
A. 1.5
B. 2
C. 3
D. 4

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