POST UTME LAUTECH 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm has the following data on the cost of production: Labor: ₦100,000, Capital: ₦200,000, Total Cost: ₦300,000. What is the marginal cost of production?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 2
A company is considering the implementation of a warehouse management system. What is the primary benefit of such a system?
A. Improved inventory accuracy
B. Enhanced supply chain visibility
C. Increased warehouse productivity
D. Reduced labor costs
Question 3
A company uses a production planning system that allocates 30% of its production capacity to product A and 70% to product B. If the company produces 10,000 units of product A and 20,000 units of product B, what is the total production capacity of the company?
A. 30,000 units
B. 40,000 units
C. 50,000 units
D. 60,000 units
Question 4
A company is considering two different marketing strategies: a push strategy and a pull strategy. Which strategy is more likely to be effective in a market with a high level of consumer awareness and a strong brand identity?
A. Push strategy
B. Pull strategy
C. Both strategies are equally effective
D. Neither strategy is effective
Question 5
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. If the price of a good increases, what will happen to the quantity supplied and the quantity demanded?
A. Quantity supplied increases and quantity demanded decreases
B. Quantity supplied decreases and quantity demanded increases
C. Quantity supplied and quantity demanded both increase
D. Quantity supplied and quantity demanded both decrease
Question 6
A company has two business units: A and B. Unit A has a profit of ₦120,000 and a total revenue of ₦500,000, while unit B has a profit of ₦80,000 and a total revenue of ₦300,000. What is the ratio of the profit of unit A to the profit of unit B?
A. 1.5
B. 2
C. 3
D. 4
Question 7
A firm is considering two different business units: a sole trader and a company. The sole trader has an initial investment of ₦100,000 and expects to earn a profit of ₦50,000 per year. The company has an initial investment of ₦500,000 and expects to earn a profit of ₦200,000 per year. Which business unit should the firm choose?
A. Sole trader
B. Company
C. Either sole trader or company
D. Neither sole trader nor company
Question 8
A firm is considering investing in a new project with a high level of uncertainty. Which of the following risk management techniques would be most appropriate for this project?
A. Diversification
B. Hedging
C. Risk avoidance
D. Risk taking
Question 9
A company has a warehouse with a capacity of 1000 units. The company receives a shipment of 500 units and wants to store them in the warehouse. If the warehouse is already 75% full, how many more units can the company store?
A. 250
B. 500
C. 750
D. 1000
Question 10
A consumer protection agency has the following data on the number of complaints received per month: January: 120, February: 150, March: 180, April: 200, May: 220. What is the median number of complaints received per month?
A. 180
B. 190
C. 200
D. 210
Question 11
A country is experiencing a trade deficit due to a high level of imports and a low level of exports. Which of the following policies would be most effective in reducing the trade deficit?
A. Increasing tariffs on imports
B. Decreasing taxes on exports
C. Increasing government spending
D. Decreasing government spending
Question 12
A bank that offers a loan with an interest rate of 10% per annum and a repayment period of 5 years is an example of a
A. Fixed-rate loan
B. Floating-rate loan
C. Variable-rate loan
D. Compound interest loan
Question 13
A company's articles of association state that the company must hold an annual general meeting (AGM) within 15 months of its incorporation. If the company is incorporated on January 1st and the AGM is held on June 15th, is the company in compliance with its articles of association?
A. Yes, the company is in compliance.
B. No, the company is not in compliance.
C. The company is in compliance, but the AGM should be held within 12 months.
D. The company is not in compliance, but the AGM should be held within 18 months.
Question 14
A company is considering the implementation of a transportation management system. What is the primary benefit of such a system?
A. Improved route optimization
B. Enhanced transportation visibility
C. Increased transportation productivity
D. Reduced transportation costs
Question 15
A firm uses the following cost function: C = 2L + 3K, where C is the total cost, L is the number of labor units, and K is the number of capital units. If the firm has 3 labor units and 6 capital units, what is the total cost?
A. ₦30
B. ₦60
C. ₦90
D. ₦120

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