POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer protection agency has received a complaint about a company's advertisement. The advertisement claims that a product is safe for use by children, but the agency has evidence that the product is not safe. What is the legal basis for the agency's action?
A. Consumer Protection Act
B. Trade Practices Act
C. Advertising Standards Act
D. Product Liability Act
Question 2
A transport company has the following data on its fuel consumption and revenue per trip:
A. ₦500
B. ₦600
C. ₦700
D. ₦800
Question 3
A firm's marketing mix involves a product with a high level of quality, a price that is slightly above average, a promotion that is highly targeted, and a distribution channel that is highly efficient. Which of the following is a characteristic of this marketing mix?
A. Highly focused on a specific target market
B. Involves a mix of advertising, sales promotions, and public relations
C. Emphasizes building long-term relationships with customers
D. Primarily uses social media to reach customers
Question 4
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a benefit of registering under CAMA?
A. Limited liability
B. Easy registration process
C. Access to government contracts
D. Tax benefits
Question 5
A warehouse is storing a large quantity of perishable goods. Which of the following is a key factor to consider when determining the optimal storage conditions?
A. Temperature
B. Humidity
C. Light exposure
D. All of the above
Question 6
A consumer protection agency has been established to regulate the activities of businesses in a particular industry. Which of the following is a key function of this agency?
A. To investigate complaints from consumers
B. To set standards for the industry
C. To provide education and awareness to consumers
D. To impose fines on businesses that violate regulations
Question 7
A company's insurance policy has a deductible of ₦50,000 and a maximum payout of ₦500,000. If the company suffers a loss of ₦750,000, how much will it pay out of pocket?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 8
A firm's profit is calculated as the difference between its
A. total revenue and total cost
B. total revenue and average cost
C. marginal revenue and marginal cost
D. average revenue and average cost
Question 9
A company is considering exporting its products to a foreign market. Which of the following is a key factor to consider when making this decision?
A. The company's production costs
B. The demand for the product in the foreign market
C. The company's marketing strategy
D. The company's financial resources
Question 10
A firm's cost of production is the sum of its
A. fixed costs and variable costs
B. fixed costs and average costs
C. variable costs and average costs
D. fixed costs and marginal costs
Question 11
A company is considering the use of a new production technology. The technology will reduce production costs, but it may also increase the risk of product defects. What is the name of the production concept that the company is considering?
A. Mass Production
B. Batch Production
C. Job Production
D. Flexible Manufacturing System
Question 12
A consumer protection agency has received a complaint about a company's advertisement. The advertisement claims that a product can cure a certain disease, but the agency has evidence that the product is ineffective. What is the legal basis for the agency's action?
A. Consumer Protection Act
B. Trade Practices Act
C. Advertising Standards Act
D. Product Liability Act
Question 13
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is NOT a characteristic of this strategy?
A. Highly focused on a specific target market
B. Involves a mix of advertising, sales promotions, and public relations
C. Emphasizes building long-term relationships with customers
D. Primarily uses social media to reach customers
Question 14
A consumer's budget constraint is given by 2x + 3y = 12, where x is the quantity of good x and y is the quantity of good y. If the consumer's income increases by 20%, how will the budget constraint shift?
A. Shifts inward
B. Shifts outward
C. Remains unchanged
D. Rotates counterclockwise
Question 15
A firm is considering the purchase of a new machine that costs ₦5 million. The machine is expected to generate annual savings of ₦1.2 million for the next 5 years. If the firm's cost of capital is 12% per annum, what is the net present value (NPV) of the investment?
A. ₦1,500,000
B. ₦2,000,000
C. ₦2,500,000
D. ₦3,000,000

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