POST UTME LAUTECH 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). What is the implication of this on the business?
A. The business is not liable for its debts.
B. The business is not entitled to limited liability.
C. The business is not required to file annual returns.
D. The business is not entitled to issue share certificates.
Question 2
A company produces a product that is subject to a patent. The patent holder grants a license to the company to manufacture and sell the product. However, the company fails to pay the required royalties to the patent holder. What is the primary consequence of the company's actions?
A. The patent holder can revoke the license
B. The company can be sued for patent infringement
C. The company must pay a fine to the patent holder
D. The patent holder can terminate the license
Question 3
A transportation company offers a door-to-door delivery service. What is the primary benefit of this service for customers?
A. Increased delivery speed
B. Improved customer service
C. Enhanced product security
D. Reduced transportation costs
Question 4
A company specializes in producing a single product, which is a type of electronic component. The production process involves several stages, including design, prototyping, testing, and manufacturing. The company uses a just-in-time (JIT) inventory system to manage its inventory levels. What is the primary advantage of using a JIT inventory system in this scenario?
A. Reduced inventory costs
B. Improved product quality
C. Increased production efficiency
D. Enhanced customer satisfaction
Question 5
A firm's cost function is given by C = 2L + 3H, where C is cost, L is labor, and H is capital. If the firm increases labor from 4 to 9 units, and capital from 9 to 16 units, by how much does the cost increase?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 6
A firm is considering investing in a new project. The project has a cost of ₦1,000,000 and a benefit of ₦1,200,000. What is the net present value (NPV) of the project?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 7
A company's marketing strategy involves a mix of advertising and personal selling. Which of the following best describes the primary goal of this strategy?
A. To increase brand awareness
B. To generate leads
C. To build customer relationships
D. To increase sales revenue
Question 8
A firm specializes in producing only one product. Which of the following is a disadvantage of specialization?
A. Higher production costs
B. Lower production costs
C. Increased market share
D. Reduced competition
Question 9
A company's marketing mix involves a product with a unique feature, a price that is slightly higher than the competition, a place that is easily accessible, and a promotion that is targeted at a specific audience. Which of the following best describes the primary goal of this marketing mix?
A. To increase brand awareness
B. To generate leads
C. To build customer relationships
D. To increase sales revenue
Question 10
A bank's interest rate on a loan is 12% per annum. If the loan amount is ₦100,000, how much interest will be paid after 2 years?
A. ₦24,000
B. ₦24,500
C. ₦25,000
D. ₦25,500
Question 11
A company uses the concept of economies of scale to justify its production decisions. What is the primary benefit of economies of scale?
A. Reduced production costs
B. Increased market share
C. Improved product quality
D. Enhanced customer service
Question 12
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm increases labor from 4 to 9 units, and capital from 9 to 16 units, by how much does output increase?
A. 10%
B. 20%
C. 30%
D. 40%
Question 13
A firm specializes in producing a single product, which is a type of commodity. The firm's production function is given by Q = 100L^0.5, where Q is the quantity produced and L is the labor input. If the firm's labor input increases by 25%, what is the percentage change in the quantity produced?
A. 6.25%
B. 12.5%
C. 25%
D. 50%
Question 14
A warehouse's inventory management system relies on a first-in, first-out (FIFO) method. What is the primary advantage of this approach?
A. Reduced storage costs
B. Improved inventory turnover
C. Enhanced product quality
D. Increased customer satisfaction
Question 15
A foreign trade agreement between two countries aims to reduce tariffs and increase trade volumes. What is the primary economic benefit of this agreement for the participating countries?
A. Increased economic growth
B. Improved trade balance
C. Enhanced competitiveness
D. Reduced unemployment

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