Practice Post UTME LASU commerce 2023 Past Questions

Question 1

In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing marginal opportunity costs. What is the primary reason for this upward-sloping supply curve?

A. The law of diminishing marginal returns

Correct B. The law of increasing marginal opportunity costs

C. The law of supply and demand

D. The law of diminishing marginal utility

Correct Answer: B

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Question 2

A company's financial statements show that its current ratio is 2:1. What does this ratio indicate about the company's liquidity?

Correct A. The company has a high level of liquidity

B. The company has a low level of liquidity

C. The company's liquidity is stable

D. The company's liquidity is decreasing

Correct Answer: A

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Question 3

A warehouse has a storage capacity of 1000 units. If 80% of the capacity is occupied, how many units are still available for storage?

A. 800

B. 600

C. 400

Correct D. 200

Correct Answer: D

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Question 4

A company has a policy of paying its suppliers within 30 days. If the company pays its suppliers on the 15th day of each month, what is the average payment period?

A. 15

B. 20

C. 25

Correct D. 30

Correct Answer: D

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Question 5

A company's cash flow statement shows a net increase in cash of ₦1,000,000. What does this indicate about the company's liquidity?

Correct A. The company has a high level of liquidity

B. The company has a low level of liquidity

C. The company's liquidity is stable

D. The company's liquidity is decreasing

Correct Answer: A

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Question 6

A firm specializes in producing a single product, which is a type of commodity. The firm's production function is given by the equation ( Q = 100L^0.5K^0.25 ), where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm wants to produce 100 units of the commodity, and it has 4 units of labor and 16 units of capital available, what is the minimum amount of capital it must have to produce 100 units of the commodity?

A. 8

B. 16

Correct C. 32

D. 64

Correct Answer: C

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Question 7

A company is considering launching a new product in a foreign market. The company's marketing manager has estimated that the demand for the product will be given by the equation ( Q = 1000 - 2P ), where Q is the quantity demanded and P is the price of the product. If the company wants to maximize its profits, what price should it charge for the product?

A. 200

B. 300

Correct C. 400

D. 500

Correct Answer: C

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Question 8

A firm is considering exporting its product to a foreign market. The firm's export manager has estimated that the demand for the product in the foreign market will be given by the equation ( Q = 1000 - 2P ), where Q is the quantity demanded and P is the price of the product. If the firm wants to maximize its profits, what price should it charge for the product?

A. 200

B. 300

Correct C. 400

D. 500

Correct Answer: C

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Question 9

A bank is considering lending money to a firm. The bank's risk manager has estimated that the probability of the firm defaulting on the loan is 0.2. If the bank wants to minimize its risk, what is the maximum amount of money it should lend to the firm?

A. 1000

Correct B. 2000

C. 3000

D. 4000

Correct Answer: B

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Question 10

A company is considering setting up a sole trader business. The company's accountant has estimated that the profit of the business will be given by the equation ( P = 1000L - 200K ), where P is the profit, L is the labor input, and K is the capital input. If the company wants to maximize its profits, what is the minimum amount of capital it must have to produce 100 units of the commodity?

A. 8

B. 16

Correct C. 32

D. 64

Correct Answer: C

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Question 11

The Lagos State Consumer Protection Agency has the power to investigate complaints against businesses that violate the Consumer Protection Law. Which of the following is a valid reason for the agency to investigate a business?

A. The business has been accused of selling expired products.

Correct B. The business has been accused of selling products that are not in compliance with the Lagos State Consumer Protection Law.

C. The business has been accused of selling products that are not in compliance with the Nigerian Consumer Protection Law.

D. The business has been accused of selling products that are not in compliance with the Lagos State Consumer Protection Agency's regulations.

Correct Answer: B

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Question 12

A consumer purchases a product from a business and discovers that the product is defective. The consumer returns the product to the business and demands a refund. The business refuses to refund the consumer. What is the consumer's next course of action?

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

B. Take the business to court.

C. Contact the business's customer service department.

D. Post a negative review on social media.

Correct Answer: A

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Question 13

A business is accused of violating the Consumer Protection Law by selling products that are not in compliance with the law. The Lagos State Consumer Protection Agency investigates the business and finds that the business is guilty of violating the law. What is the agency's next course of action?

A. Fine the business ₦100,000.

B. Order the business to stop selling the products.

Correct C. Order the business to refund all the money it has collected from consumers.

D. Close down the business.

Correct Answer: C

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Question 14

A consumer purchases a product from a business and discovers that the product is not as described. The consumer returns the product to the business and demands a refund. The business refuses to refund the consumer. What is the consumer's next course of action?

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

B. Take the business to court.

C. Contact the business's customer service department.

D. Post a negative review on social media.

Correct Answer: A

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Question 15

A business is accused of violating the Consumer Protection Law by selling products that are not in compliance with the law. The Lagos State Consumer Protection Agency investigates the business and finds that the business is guilty of violating the law. What is the agency's next course of action?

A. Fine the business ₦100,000.

B. Order the business to stop selling the products.

Correct C. Order the business to refund all the money it has collected from consumers.

D. Close down the business.

Correct Answer: C

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Question 16

A consumer purchases a product from a business and discovers that the product is defective. The consumer returns the product to the business and demands a refund. The business refuses to refund the consumer. What is the consumer's next course of action?

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

B. Take the business to court.

C. Contact the business's customer service department.

D. Post a negative review on social media.

Correct Answer: A

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Question 17

A business is accused of violating the Consumer Protection Law by selling products that are not in compliance with the law. The Lagos State Consumer Protection Agency investigates the business and finds that the business is guilty of violating the law. What is the agency's next course of action?

A. Fine the business ₦100,000.

B. Order the business to stop selling the products.

Correct C. Order the business to refund all the money it has collected from consumers.

D. Close down the business.

Correct Answer: C

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Question 18

A consumer purchases a product from a business and discovers that the product is not as described. The consumer returns the product to the business and demands a refund. The business refuses to refund the consumer. What is the consumer's next course of action?

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

B. Take the business to court.

C. Contact the business's customer service department.

D. Post a negative review on social media.

Correct Answer: A

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Question 19

A sole trader's business is considered a separate legal entity from its owner. True or False?

A. True

Correct B. False

C. It depends on the jurisdiction

D. A sole trader's business is not a separate legal entity

Correct Answer: B

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Question 20

A company's articles of association can be amended by a simple majority vote of shareholders. True or False?

A. True

B. False

C. It depends on the company's constitution

Correct D. A company's articles of association can only be amended by a special resolution

Correct Answer: D

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Question 21

A sole trader's business is not required to file accounts with the registrar of companies. True or False?

Correct A. True

B. False

C. It depends on the size of the business

D. A sole trader's business is required to file accounts with the registrar of companies

Correct Answer: A

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Question 22

A company's directors have a fiduciary duty to act in the best interests of the company and its shareholders. True or False?

Correct A. True

B. False

C. It depends on the company's constitution

D. A company's directors have a fiduciary duty to act in the best interests of the company's employees

Correct Answer: A

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Question 23

A sole trader's business is not required to hold an annual general meeting. True or False?

Correct A. True

B. False

C. It depends on the size of the business

D. A sole trader's business is required to hold an annual general meeting

Correct Answer: A

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Question 24

In a perfectly competitive market, the supply curve is downward sloping because of the law of increasing marginal opportunity cost. What is the marginal opportunity cost?

A. Marginal Revenue

Correct B. Marginal Cost

C. Average Variable Cost

D. Average Fixed Cost

Correct Answer: B

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Question 25

A firm's production function is given by Q = 2L^0.5 + 3K^0.5. If the firm's current input levels are L = 4 and K = 9, what is the marginal product of labor?

A. 1.5

Correct B. 2.5

C. 3.5

D. 4.5

Correct Answer: B

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