POST UTME LEAD CITY UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm specializes in producing only one product. This specialization allows the firm to focus on a specific market segment and develop expertise in that area. What is the primary benefit of specialization for the firm?
A. Increased efficiency
B. Reduced costs
C. Improved product quality
D. Enhanced customer satisfaction
Question 2
A company's marketing strategy involves a mix of product, price, place, and promotion. If the company decides to launch a new product, what is the likely outcome?
A. Increased market share
B. Improved brand recognition
C. Reduced production costs
D. Enhanced customer loyalty
Question 3
The concept of 'moral hazard' in insurance is closely related to which of the following?
A. Adverse selection
B. Moral hazard
C. Risk aversion
D. Diversification
Question 4
A company has a warehouse with a capacity of 1000 units. The warehouse is currently 75% full. If 150 units are added to the warehouse, what percentage of the warehouse is now full?
A. 80
B. 85
C. 90
D. 95
Question 5
A consumer protection agency has the power to investigate complaints against businesses. Which of the following is a valid reason for the agency to investigate a complaint?
A. The business has a history of violating consumer rights
B. The consumer has filed a complaint against the business
C. The business has not provided adequate customer service
D. The consumer has not paid for a product
Question 6
A company's sole trader is considering expanding its operations to a new market. Which of the following business units would be most suitable for this expansion?
A. Sole Trader
B. Limited Liability Partnership
C. Private Limited Company
D. Public Limited Company
Question 7
A sole trader's business is affected by the Sole Trader's Act of 1993. Which of the following is a key provision of this Act?
A. Liability for business debts
B. Taxation of business profits
C. Registration of business
D. Protection of business assets
Question 8
A marketing manager is developing a marketing strategy for a new product. Which of the following is a valid marketing objective?
A. To increase sales revenue
B. To reduce production costs
C. To improve brand awareness
D. To decrease market share
Question 9
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 16 units and the number of workers (L) is 4, how many machines (K) are required?
A. 4
B. 6
C. 8
D. 10
Question 10
A company's insurance policy covers losses due to fire, theft, and natural disasters. If the company experiences a fire that destroys its warehouse, what is the likely outcome?
A. The company will receive a full payout
B. The company will receive a partial payout
C. The company will not receive any payout
D. The company will be required to pay a deductible
Question 11
A company's insurance policy has a deductible of ₦50,000. If the company suffers a loss of ₦200,000, how much will it pay in premiums?
A. ₦150,000
B. ₦175,000
C. ₦200,000
D. ₦225,000
Question 12
A company's warehousing and stock control system is designed to minimize stockouts and overstocking. Which of the following inventory management techniques would be most effective in achieving this goal?
A. Just-In-Time Inventory System
B. Economic Order Quantity (EOQ) System
C. ABC Analysis
D. Vendor-Managed Inventory (VMI) System
Question 13
A firm is considering implementing a just-in-time (JIT) inventory system. What is the primary benefit of JIT for the firm?
A. Reduced inventory costs
B. Improved product quality
C. Increased efficiency
D. Enhanced customer satisfaction
Question 14
A company's warehouse is experiencing stockouts due to inadequate inventory management. Which of the following is a key performance indicator (KPI) that can help the company improve its inventory management?
A. Inventory turnover ratio
B. Days inventory outstanding
C. Gross margin ratio
D. Return on assets
Question 15
A company's marketing strategy is focused on increasing brand awareness. Which of the following advertising techniques would be most effective in achieving this goal?
A. Print Advertising
B. Television Advertising
C. Radio Advertising
D. Digital Advertising

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