POST UTME LAUTECH 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering two different 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. The company's marketing manager has estimated the following costs for each strategy: Strategy A: ₦100,000 per month, Strategy B: ₦50,000 per month. If the company's sales revenue is ₦500,000 per month, which strategy should the company choose?
A. Strategy A
B. Strategy B
C. Both strategies are equally profitable
D. Neither strategy is profitable
Question 2
A consumer has purchased a product from a retailer, but the product has a packaging defect. Which of the following is the consumer's right under the Consumer Protection Act?
A. To return the product for a full refund
B. To exchange the product for a similar one
C. To claim damages from the manufacturer
D. To seek compensation from the retailer
Question 3
A firm has a production capacity of 10,000 units per month. The firm sells its products at a price of ₦2,500 per unit. If the fixed costs are ₦150,000 and the variable costs are ₦1,500 per unit, what is the firm's total revenue per month?
A. ₦25,000,000
B. ₦30,000,000
C. ₦35,000,000
D. ₦40,000,000
Question 4
A consumer has purchased a product from a retailer, but the product has a manufacturing defect. Which of the following is the consumer's right under the Consumer Protection Act?
A. To return the product for a full refund
B. To exchange the product for a similar one
C. To claim damages from the manufacturer
D. To seek compensation from the retailer
Question 5
The process of creating and communicating value to customers is known as?
A. Marketing
B. Advertising
C. Promotion
D. Sales
Question 6
A company is registered under the Companies and Allied Matters Act in Nigeria. What is the primary advantage of registering a company under this Act?
A. Limited liability for shareholders
B. Easy transfer of ownership
C. Flexibility in management structure
D. Tax benefits
Question 7
A firm is considering two different types of insurance policies for its employees: life insurance and health insurance. The firm's HR manager has estimated the following costs for each policy: Life insurance: ₦10,000 per employee per year, Health insurance: ₦5,000 per employee per year. If the firm has 100 employees, what is the total cost of each policy?
A. Life insurance: ₦1,000,000, Health insurance: ₦500,000
B. Life insurance: ₦500,000, Health insurance: ₦1,000,000
C. Life insurance: ₦1,500,000, Health insurance: ₦1,500,000
D. Life insurance: ₦2,000,000, Health insurance: ₦2,000,000
Question 8
A company in Nigeria is planning to expand its operations into a new market. What is the primary consideration for the company when deciding on the new market?
A. Market size and growth potential
B. Competitor analysis
C. Regulatory environment
D. Supply chain logistics
Question 9
A bank's cash reserve ratio is 20%. If the bank has ₦100 million in cash reserves, what is the total amount of deposits it can make?
A. ₦500 million
B. ₦400 million
C. ₦300 million
D. ₦200 million
Question 10
A company has two production plants, A and B. Plant A produces 60% of the company's output, and plant B produces the remaining 40%. If the total output is 10,000 units, what is the total fixed cost of the company?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 11
The Consumer Protection Act of 1999 provides for the protection of consumers from unfair trade practices. Which of the following is a key provision of the Act?
A. Prohibition of false or misleading advertisements
B. Establishment of the Consumer Protection Council
C. Compensation for consumers who suffer loss or injury due to unfair trade practices
D. Regulation of prices of goods and services
Question 12
A company has a monopoly in the market for a particular product. Which of the following is a potential consequence of the company's market power?
A. The company will have to reduce its prices to compete with other firms
B. The company will have to increase its production capacity to meet demand
C. The company will be able to set prices above the equilibrium price
D. The company will be able to produce at a lower cost than other firms
Question 13
A company is considering the use of a new transportation mode to deliver its products. The mode involves the use of drones to transport goods. What is the primary advantage of using drones as a transportation mode?
A. Increased speed of delivery
B. Improved safety of delivery
C. Enhanced customer satisfaction
D. All of the above
Question 14
A company's insurance policy has a deductible of ₦10,000. If the company pays ₦50,000 for a claim, and the insurance company pays ₦40,000, what is the total amount the company paid?
A. ₦40,000
B. ₦30,000
C. ₦20,000
D. ₦10,000
Question 15
A consumer has purchased a product from a retailer, but the product has a packaging defect. Which of the following is the consumer's right under the Consumer Protection Act?
A. To return the product for a full refund
B. To exchange the product for a similar one
C. To claim damages from the manufacturer
D. To seek compensation from the retailer

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