Practice Post UTME LASU commerce 2021 Past Questions

Question 1

The Lagos State Consumer Protection Agency has the power to investigate complaints about unfair business practices under the Lagos State Consumer Protection Law. Which of the following is a valid ground for investigation?

A. Unfair contract terms

Correct B. Misleading advertising

C. Unfair pricing

D. Unfair competition

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 2

A consumer purchases a product from a retailer in Lagos. The product is defective and the consumer seeks redress under the Consumer Protection Law. What is the first step the consumer should take?

Correct A. File a complaint with the Lagos State Consumer Protection Agency

B. Seek compensation from the retailer

C. Return the product to the retailer

D. Contact the manufacturer

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 3

A company in Lagos engages in a marketing campaign that includes a misleading advertisement. The advertisement is broadcast on television and radio. What is the legal consequence of this action?

A. The company may be fined ₦100,000

B. The company may be ordered to cease broadcasting the advertisement

Correct C. The company may be liable for damages to consumers who relied on the advertisement

D. The company may be exempt from liability if it can prove that the advertisement was not misleading

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 4

A consumer in Lagos purchases a product from an online retailer. The product is delivered late and the consumer seeks compensation under the Consumer Protection Law. What is the legal basis for the consumer's claim?

A. The Consumer Protection Law requires retailers to deliver products within a reasonable time

B. The Consumer Protection Law requires retailers to provide a refund if a product is not delivered on time

Correct C. The Consumer Protection Law requires retailers to compensate consumers for any losses incurred due to late delivery

D. The Consumer Protection Law does not provide any protection for consumers who purchase products online

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 5

A company in Lagos engages in a business practice that is unfair to consumers. The company is required to cease the practice under the Consumer Protection Law. What is the legal consequence of the company's failure to comply?

A. The company may be fined ₦500,000

Correct B. The company may be ordered to pay damages to consumers who were affected by the unfair practice

C. The company may be liable for any losses incurred by consumers who were affected by the unfair practice

D. The company may be exempt from liability if it can prove that the practice was not unfair

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 6

A company is considering two marketing strategies: Strategy A, which involves a 10% increase in advertising expenditure, and Strategy B, which involves a 5% increase in sales promotions. If the company's current advertising expenditure is ₦1,500,000 and its current sales promotions expenditure is ₦800,000, what is the total increase in expenditure under Strategy B compared to Strategy A?

A. ₦120,000

B. ₦150,000

Correct C. ₦180,000

D. ₦200,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 7

A firm is considering two transportation options: Option A, which involves a fixed cost of ₦50,000 and a variable cost of ₦0.50 per unit, and Option B, which involves a fixed cost of ₦30,000 and a variable cost of ₦0.60 per unit. If the firm expects to transport 10,000 units, what is the total cost under Option B compared to Option A?

A. ₦10,000

B. ₦20,000

Correct C. ₦30,000

D. ₦40,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 8

A warehouse has a storage capacity of 10,000 units. If the warehouse is currently storing 8,000 units, what is the maximum number of units that can be added to the warehouse without exceeding its capacity?

A. 1,000

B. 2,000

C. 3,000

Correct D. 4,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 9

A company has a 10% chance of experiencing a loss of ₦100,000 and a 90% chance of experiencing a gain of ₦50,000. What is the expected value of the company's returns?

A. ₦5,000

B. ₦10,000

C. ₦15,000

Correct D. ₦20,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 10

A bank offers a 5% interest rate on deposits. If a customer deposits ₦10,000 for 2 years, what is the total interest earned?

A. ₦1,000

B. ₦2,000

C. ₦3,000

Correct D. ₦4,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 11

A company is considering two production processes for its new product. Process A requires an initial investment of ₦1.5 million and generates an annual profit of ₦750,000. Process B requires an initial investment of ₦2 million and generates an annual profit of ₦1.2 million. If the company expects to operate for 5 years, which process should it choose?

A. Process A

Correct B. Process B

C. Both processes are equally profitable

D. Neither process is profitable

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 12

A firm is considering two marketing strategies for its new product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. If the firm expects to sell 10,000 units of the product per month, which strategy should it choose?

Correct A. Strategy A

B. Strategy B

C. Both strategies are equally effective

D. Neither strategy is effective

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 13

A bank is considering two investment options for its customers. Option A involves investing in a high-risk, high-return stock, while Option B involves investing in a low-risk, low-return bond. If the bank expects to attract 1,000 customers, which option should it choose?

A. Option A

Correct B. Option B

C. Both options are equally attractive

D. Neither option is attractive

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 14

A company is considering two export strategies for its product. Strategy A involves exporting to a high-growth market, while Strategy B involves exporting to a low-growth market. If the company expects to export 5,000 units of the product per year, which strategy should it choose?

Correct A. Strategy A

B. Strategy B

C. Both strategies are equally effective

D. Neither strategy is effective

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 15

A firm is considering two pricing strategies for its product. Strategy A involves a high price, while Strategy B involves a low price. If the firm expects to sell 10,000 units of the product per month, which strategy should it choose?

A. Strategy A

Correct B. Strategy B

C. Both strategies are equally effective

D. Neither strategy is effective

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 16

A company is considering the use of just-in-time (JIT) inventory management system. Which of the following is a major advantage of JIT?

Correct A. Reduced inventory costs

B. Improved product quality

C. Increased flexibility in production planning

D. Enhanced customer satisfaction

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 17

A firm is involved in both domestic and international trade. Which of the following is a characteristic of foreign trade?

Correct A. Involves the exchange of goods and services between two or more countries

B. Involves the exchange of goods and services within a country

C. Involves the exchange of goods and services between a country and its colonies

D. Involves the exchange of goods and services between a country and its neighboring countries

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 18

A sole trader is considering the formation of a partnership with another individual. Which of the following is a major advantage of a partnership?

A. Increased capital

B. Improved management

C. Enhanced reputation

Correct D. Reduced liability

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 19

A bank is considering the use of a new financial instrument to manage risk. Which of the following is a characteristic of a derivatives contract?

Correct A. Involves the exchange of cash flows between two parties

B. Involves the exchange of physical goods between two parties

C. Involves the exchange of financial instruments between two parties

D. Involves the exchange of services between two parties

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 20

A firm is considering the use of a new transportation mode to reduce costs. Which of the following is a characteristic of a pipeline?

A. Involves the transportation of goods by road

B. Involves the transportation of goods by rail

C. Involves the transportation of goods by sea

Correct D. Involves the transportation of goods through a network of pipes

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 21

The Central Bank of Nigeria (CBN) uses the monetary policy instrument of Open Market Operations (OMO) to regulate the money supply in the economy. Which of the following is a characteristic of OMO?

A. It involves the sale of government securities to commercial banks

Correct B. It involves the purchase of government securities from commercial banks

C. It involves the sale of government securities to the public

D. It involves the purchase of government securities from the public

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 22

A company uses the following data to calculate its weighted average cost of capital (WACC):

A. Debt: 60%, Equity: 40%

Correct B. Debt: 40%, Equity: 60%

C. Debt: 50%, Equity: 50%

D. Debt: 70%, Equity: 30%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 23

A firm's marketing mix strategy involves the 4 Ps: Product, Price, Place, and Promotion. Which of the following is NOT one of the 4 Ps?

A. Product

B. Price

C. Place

Correct D. Profit

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 24

A company's production function is given by the equation Q = 2L + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases its labor input by 20% and its capital input by 15%, what is the new production level?

Correct A. Q = 2.4L + 3.45K

B. Q = 2.2L + 3.15K

C. Q = 2.6L + 3.75K

D. Q = 2.8L + 4.05K

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 25

A firm's insurance policy has a deductible of ₦10,000 and a maximum payout of ₦50,000. If the firm incurs a loss of ₦60,000, how much will it pay in premiums?

A. ₦10,000

Correct B. ₦20,000

C. ₦30,000

D. ₦40,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

POST UTME LASU 2021 Commerce | Objective

Master the Exam!

Help others prepare! Share this practice hub: