POST UTME FUTO 2017 Commerce | Objective

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Question 1 View Details
A firm's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. What is the primary benefit of a USP?
A. Increased market share
B. Improved brand recognition
Correct C. Enhanced customer loyalty
D. Reduced production costs

Correct Answer: C

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Question 2 View Details
A company is considering exporting its product to a foreign market. What is the primary advantage of exporting?
A. Increased market share
B. Improved brand recognition
C. Reduced production costs
Correct D. Access to new markets and customers

Correct Answer: D

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Question 3 View Details
A firm's financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP). What is the primary purpose of GAAP?
Correct A. To provide a framework for financial reporting
B. To ensure compliance with tax laws
C. To reduce the cost of financial reporting
D. To increase the complexity of financial reporting

Correct Answer: A

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Question 4 View Details
A company is considering investing in a new project. What is the primary benefit of using the Net Present Value (NPV) method to evaluate the project?
A. To determine the project's internal rate of return
B. To calculate the project's payback period
Correct C. To evaluate the project's cash flows over time
D. To determine the project's sensitivity to changes in variables

Correct Answer: C

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Question 5 View Details
A firm's marketing mix involves the 4 Ps: product, price, promotion, and place. What is the primary benefit of using the 4 Ps framework?
A. To increase market share
B. To improve brand recognition
C. To enhance customer loyalty
Correct D. To provide a comprehensive framework for marketing decisions

Correct Answer: D

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Question 6 View Details
The concept of 'just in time' inventory system is most closely related to which of the following principles of inventory management?
A. Economic Order Quantity (EOQ)
Correct B. Just in Time (JIT)
C. Materials Requirements Planning (MRP)
D. Vendor Managed Inventory (VMI)

Correct Answer: B

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Question 7 View Details
A company's foreign exchange exposure can be managed through which of the following methods?
Correct A. Hedging
B. Speculation
C. Diversification
D. Risk Aversion

Correct Answer: A

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Question 8 View Details
The concept of 'moral hazard' is most closely related to which of the following principles of insurance?
A. Adverse Selection
Correct B. Moral Hazard
C. Risk Aversion
D. Diversification

Correct Answer: B

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Question 9 View Details
A company's break-even point can be calculated using which of the following formulas?
Correct A. ( ext{Break-Even Point} = rac{ ext{Fixed Costs}}{ ext{Selling Price} - ext{Variable Costs}} )
B. ( ext{Break-Even Point} = rac{ ext{Selling Price} - ext{Variable Costs}}{ ext{Fixed Costs}} )
C. ( ext{Break-Even Point} = rac{ ext{Fixed Costs} + ext{Variable Costs}}{ ext{Selling Price}} )
D. ( ext{Break-Even Point} = rac{ ext{Selling Price} + ext{Variable Costs}}{ ext{Fixed Costs}} )

Correct Answer: A

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Question 10 View Details
A company's cash flow statement can be prepared using which of the following formats?
A. Direct Method
Correct B. Indirect Method
C. Cash Basis
D. Accrual Basis

Correct Answer: B

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Question 11 View Details
A bank's liquidity ratio is calculated as the ratio of liquid assets to total deposits. If a bank has ₦1,500,000 in liquid assets and ₦2,500,000 in total deposits, what is its liquidity ratio?
Correct A. 0.6
B. 0.7
C. 0.8
D. 0.9

Correct Answer: A

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Question 12 View Details
A company's marketing strategy involves a mix of advertising, sales promotion, and public relations. Which of the following is NOT a characteristic of a successful marketing strategy?
A. It is customer-focused
B. It is cost-effective
Correct C. It is environmentally friendly
D. It is competitive

Correct Answer: C

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Question 13 View Details
A consumer protection law requires that all goods sold in a market must be accompanied by a warranty. Which of the following is a type of warranty?
Correct A. Express warranty
B. Implied warranty
C. Service warranty
D. Extended warranty

Correct Answer: A

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Question 14 View Details
A bank's risk management strategy involves diversification of assets to minimize risk. Which of the following is a type of diversification?
Correct A. Horizontal diversification
B. Vertical diversification
C. Concentration risk
D. Liquidity risk

Correct Answer: A

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Question 15 View Details
A company's marketing mix involves a combination of product, price, promotion, and place. Which of the following is NOT a characteristic of a successful marketing mix?
A. It is customer-focused
B. It is cost-effective
Correct C. It is environmentally friendly
D. It is competitive

Correct Answer: C

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Question 16 View Details
In a perfectly competitive market, the supply curve is upward-sloping because
Correct A. Firms are willing to supply more at a higher price
B. Firms are willing to supply less at a lower price
C. Firms are willing to supply more at a lower price
D. Firms are willing to supply less at a higher price

Correct Answer: A

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Question 17 View Details
A firm's production function is given by Q = 2L + 3K. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, the opportunity cost of one unit of labor is
A. ₦50
B. ₦100
Correct C. ₦150
D. ₦200

Correct Answer: C

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Question 18 View Details
A firm is considering two investment projects. Project A has a 10% chance of earning ₦100,000 and a 90% chance of earning ₦0. Project B has a 20% chance of earning ₦50,000 and an 80% chance of earning ₦0. Which project has a higher expected return?
Correct A. Project A
B. Project B
C. Project A and Project B are equal
D. Neither project has a higher expected return

Correct Answer: A

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Question 19 View Details
A firm's demand function is given by Q = 100 - 2P. If the price of the good is ₦50, the quantity demanded is
A. 50
Correct B. 75
C. 100
D. 125

Correct Answer: B

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Question 20 View Details
A firm's production function is given by Q = 2L + 3K. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, the opportunity cost of one unit of capital is
A. ₦50
Correct B. ₦100
C. ₦150
D. ₦200

Correct Answer: B

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Question 21 View Details
A sole trader's business is registered under the Companies and Allied Matters Act 2020. Which of the following is a characteristic of a sole trader?
A. Limited liability
Correct B. Unlimited liability
C. Separate legal entity
D. No partnership

Correct Answer: B

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Question 22 View Details
A company is registered under the Companies and Allied Matters Act 2020. Which of the following is a characteristic of a company?
A. Unlimited liability
B. Limited liability
Correct C. Separate legal entity
D. No partnership

Correct Answer: C

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Question 23 View Details
A consumer purchases a product from a retailer. Which of the following is a type of consumer protection?
Correct A. Consumer rights
B. Consumer education
C. Consumer safety
D. Consumer welfare

Correct Answer: A

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Question 24 View Details
A business uses a marketing strategy to promote its products. Which of the following is a type of marketing strategy?
A. Product marketing
B. Price marketing
Correct C. Promotion marketing
D. Place marketing

Correct Answer: C

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Question 25 View Details
A company uses a transport system to deliver its products. Which of the following is a type of transport system?
Correct A. Road transport
B. Rail transport
C. Air transport
D. Sea transport

Correct Answer: A

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