POST UTME LAUTECH 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In the context of consumer protection, what is the primary purpose of the Consumer Protection Act?
A. To regulate business practices and protect consumers from unfair trade practices
B. To provide a framework for consumer education and awareness
C. To establish a consumer protection agency to handle complaints and disputes
D. To promote competition and fair trade practices in the market
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, and the firm wants to maximize its profit, what is the optimal level of labor (L) and capital (K)?
A. L = 100, K = 100
B. L = 50, K = 50
C. L = 200, K = 200
D. L = 150, K = 150
Question 3
A company has a capital structure consisting of 60% debt and 40% equity. If the company's cost of debt is 8% and its cost of equity is 12%, what is the company's weighted average cost of capital (WACC)?
A. 6%
B. 8%
C. 10%
D. 12%
Question 4
In a sole trade business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Easy to set up
C. Flexibility in decision-making
D. Tax benefits
Question 5
A company's inventory management system uses the Economic Order Quantity (EOQ) model to determine the optimal order quantity. The EOQ model is given by the formula: ( Q = sqrt{ rac{2DS}{h}} ), where Q is the optimal order quantity, D is the demand rate, S is the ordering cost, and h is the holding cost. If the demand rate is 1000 units per month, the ordering cost is ₦1000 per order, and the holding cost is ₦50 per unit per month, what is the optimal order quantity?
A. 500
B. 1000
C. 2000
D. 5000
Question 6
A company has a market share of 30% in the industry. If the company wants to increase its market share by 10%, what is the new market share?
A. 40%
B. 35%
C. 30%
D. 25%
Question 7
A life insurance policy has a premium of ₦10,000 per annum and a benefit of ₦500,000. If the policyholder dies after 5 years, what is the total benefit paid to the beneficiary?
A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000
Question 8
A company's communication system uses the following formula to calculate the optimal transmission rate: ( T = sqrt{ rac{2D}{h}} ), where T is the optimal transmission rate, D is the data transfer rate, and h is the holding cost. If the data transfer rate is 100 Mbps and the holding cost is ₦50 per Mbps per hour, what is the optimal transmission rate?
A. 50 Mbps
B. 100 Mbps
C. 150 Mbps
D. 200 Mbps
Question 9
A firm is considering investing in a new production process. The process requires an initial investment of ₦15 million and is expected to generate ₦12 million in revenue per year for 10 years. The firm's cost of capital is 15%. What is the project's payback period?
A. 5 years
B. 6 years
C. 7 years
D. 8 years
Question 10
A firm is considering two different modes of transportation for its products: road and rail. The cost of transporting a unit of product by road is ₦200, while the cost of transporting a unit of product by rail is ₦150. If the firm wants to minimize its transportation cost, what is the optimal mode of transportation?
A. Road
B. Rail
C. Both
D. Neither
Question 11
A company is considering two different marketing strategies for its new product. Strategy A involves a high upfront cost of ₦5 million, but it is expected to generate ₦20 million in revenue over the next 5 years. Strategy B involves a lower upfront cost of ₦2 million, but it is expected to generate ₦15 million in revenue over the next 5 years. Which strategy has a higher net present value (NPV) if the discount rate is 10%?
A. Strategy A
B. Strategy B
C. Both strategies have the same NPV
D. Neither strategy has a positive NPV
Question 12
A company is considering exporting its products to a foreign market. What are the main advantages and disadvantages of exporting?
A. Advantages: increased revenue, reduced competition; Disadvantages: higher costs, cultural differences
B. Advantages: increased revenue, reduced competition; Disadvantages: higher costs, cultural differences, and language barriers
C. Advantages: increased revenue, reduced competition; Disadvantages: higher costs, cultural differences, and language barriers, and political instability
D. Advantages: increased revenue, reduced competition; Disadvantages: higher costs, cultural differences, and language barriers, and political instability, and lack of market research
Question 13
A company is experiencing difficulties in managing its inventory. What are the key principles of inventory management?
A. Economic order quantity, just-in-time production, and inventory turnover
B. Economic order quantity, just-in-time production, inventory turnover, and ABC analysis
C. Economic order quantity, just-in-time production, inventory turnover, ABC analysis, and vendor-managed inventory
D. Economic order quantity, just-in-time production, inventory turnover, ABC analysis, vendor-managed inventory, and continuous inventory replenishment
Question 14
A company has a marketing budget of ₦1,000,000. The company's marketing manager wants to allocate the budget across three marketing channels: social media, email marketing, and content marketing. If the company wants to allocate 30% of the budget to social media, 20% to email marketing, and 50% to content marketing, what is the total budget allocated to content marketing?
A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000
Question 15
A company has a product liability insurance policy that covers damages up to ₦5 million. If the company is sued for ₦3 million, what is the maximum amount the insurance company will pay?
A. ₦3 million
B. ₦5 million
C. ₦2.5 million
D. ₦1.5 million

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