POST UTME LASU 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's break-even point is the point at which its total revenue equals its total fixed costs. What is the name of the formula used to calculate the break-even point?
A. Break-even point = Fixed costs / (Selling price - Variable costs)
B. Break-even point = Fixed costs / (Selling price + Variable costs)
C. Break-even point = Fixed costs / (Selling price - Variable costs) x (1 + Tc)
D. Break-even point = Fixed costs / (Selling price + Variable costs) x (1 - Tc)
Question 2
A firm is considering two different warehouse layouts for a new product. Layout A involves a high level of automation, but it requires a significant upfront investment in machinery and equipment. Layout B involves a lower level of automation, but it requires less upfront investment. However, Layout B also requires more labor and has a higher labor cost. Which of the following is a potential disadvantage of Layout B?
A. Higher upfront investment
B. Lower labor costs
C. Increased labor requirements
D. Improved product quality
Question 3
A company is considering investing in a new warehouse to increase its storage capacity. The company has the following options: to build a new warehouse, to lease a warehouse, or to outsource its storage needs to a third-party logistics provider. Which of the following is a key advantage of outsourcing storage needs?
A. Reduced capital expenditure
B. Increased storage capacity
C. Improved supply chain efficiency
D. Reduced transportation costs
Question 4
A company is considering outsourcing its logistics operations to a third-party provider. Which of the following benefits would be most relevant in justifying the decision to outsource?
A. Reduced costs
B. Improved efficiency
C. Enhanced customer service
D. Increased flexibility
Question 5
A diagram showing the relationship between the price of a commodity and the quantity demanded is known as
A. Demand curve
B. Supply curve
C. Equilibrium curve
D. Market demand curve
Question 6
In a perfectly competitive market, the supply curve is typically represented by a
A. Horizontal Line
B. U-Shaped Curve
C. Inclined Plane
D. Vertical Line
Question 7
A consumer protection law that prohibits false or misleading advertising is known as
A. Deceptive Advertising Act
B. Truth-in-Advertising Act
C. Consumer Protection Act
D. Fair Trade Act
Question 8
A company is sued for violating the Consumer Protection Act. The company's defense is that the consumer was aware of the risks associated with the product. However, the consumer claims that the company failed to provide adequate warnings. Which of the following is the most likely outcome?
A. The court will rule in favor of the company.
B. The court will rule in favor of the consumer.
C. The case will be dismissed due to lack of evidence.
D. The case will be sent back to the lower court for re-trial.
Question 9
A warehouse manager wants to store 500 boxes of goods. The warehouse has a capacity of 2000 square feet. Each box occupies 0.5 square feet. What is the maximum number of boxes that can be stored in the warehouse?
A. 1000
B. 2000
C. 5000
D. 10000
Question 10
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing marginal opportunity costs. However, this is not the case in a market with a single firm. What is the name of this phenomenon?
A. Economies of scale
B. Increasing marginal opportunity costs
C. Diminishing marginal returns
D. Monopoly power
Question 11
A consumer protection agency has received a complaint about a company's unfair business practices. The agency has the power to investigate the company and impose penalties if necessary. Which of the following is a key function of the consumer protection agency?
A. To promote fair competition
B. To protect consumers from unfair business practices
C. To regulate the use of consumer data
D. To provide consumer education
Question 12
A company is considering two different marketing strategies for a new product. Strategy A involves a high level of advertising and promotion, but it requires a significant upfront investment. Strategy B involves a lower level of advertising and promotion, but it requires less upfront investment. However, Strategy B also requires more time to generate sales. Which of the following is a potential advantage of Strategy A?
A. Reduced upfront investment
B. Improved product quality
C. Increased sales in a shorter period
D. Enhanced customer satisfaction
Question 13
A company's marketing strategy involves creating a brand identity that is consistent across all channels. Which of the following is a key element of a brand identity?
A. Product features
B. Packaging design
C. Brand positioning
D. Price strategy
Question 14
A firm's cost of production includes all the expenses incurred in producing a good or service. Which of the following is NOT a cost of production?
A. Fixed costs
B. Variable costs
C. Opportunity costs
D. Sunk costs
Question 15
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. decrease
B. increase
C. remain constant
D. be unaffected

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