POST UTME LASU 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm has a production cost of ₦500,000 per month. If it sells its product for ₦1,000,000 per month, what is its profit margin?
A. 50%
B. 60%
C. 70%
D. 80%
Question 2
A company's Memorandum of Association (MOA) outlines its
A. Objectives and goals
B. Share capital and ownership structure
C. Business operations and management
D. All of the above
Question 3
A company has a market value of ₦2,000,000 and a book value of ₦1,500,000. What is the company's market-to-book ratio?
A. 0.8
B. 1.0
C. 1.2
D. 1.5
Question 4
A company's Board of Directors is responsible for
A. Strategic planning and decision-making
B. Day-to-day business operations and management
C. Financial management and accounting
D. All of the above
Question 5
A company's financial statements include the balance sheet, income statement, and cash flow statement. Which of the following is NOT a component of the balance sheet?
A. Assets
B. Liabilities
C. Equity
D. Revenue
Question 6
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 public relations in a marketing mix?
A. Building brand awareness
B. Increasing sales revenue
C. Improving customer relationships
D. Enhancing product quality
Question 7
A firm's marketing mix involves the use of social media to promote its products. Which of the following is the primary benefit of this strategy?
A. Increased brand awareness
B. Improved customer engagement
C. Enhanced customer loyalty
D. Increased sales
Question 8
A company's insurance policy covers losses due to fire, theft, and natural disasters. Which of the following is the primary purpose of this policy?
A. To reduce the risk of losses
B. To increase the company's assets
C. To provide financial protection
D. To improve the company's reputation
Question 9
In a sole trade business, the owner's personal assets are not protected from business liabilities. What is the primary reason for this?
A. Lack of separate business bank account
B. Insufficient business insurance coverage
C. Personal guarantee of business loans
D. Inadequate business registration
Question 10
A bank offers a credit card with a 0% interest rate for the first 6 months. Which of the following is a key factor that affects the choice of credit card?
A. Interest rate
B. Annual fee
C. Credit limit
D. All of the above
Question 11
A company is considering exporting its products to the European Union. What is the primary advantage of using the Incoterms 2020 rules in international trade?
A. Reduced transportation costs
B. Simplified customs procedures
C. Clearer allocation of risks
D. Increased market access
Question 12
A sole trader's business is not required to file annual accounts with the
A. Companies Registration and Licensing Agency (CRA)
B. Federal Inland Revenue Service (FIRS)
C. National Industrial Court of Nigeria (NICN)
D. Corporate Affairs Commission (CAC)
Question 13
A company's marketing strategy involves which of the following?
A. Product Differentiation
B. Market Segmentation
C. Target Marketing
D. All of the above
Question 14
A foreign trade agreement involves the exchange of goods and services between two or more countries. What is the main purpose of a foreign trade agreement?
A. To promote economic growth
B. To reduce trade barriers
C. To increase competition
D. To protect domestic industries
Question 15
A sole trader's business is registered under the sole trader's name. What is the main advantage of this type of business registration?
A. It is easy to set up
B. It is cheap to maintain
C. It provides limited liability protection
D. It allows for easy transfer of ownership

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