POST UTME LEAD CITY UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering a new supply chain management strategy that involves outsourcing its logistics operations to a third-party provider. The company is concerned about the potential risks associated with this strategy, including the risk of supply chain disruptions and the potential for the provider to compromise the company's intellectual property. Which of the following is the most appropriate way for the company to mitigate these risks?
A. Conducting a thorough risk assessment of the provider
B. Requiring the provider to implement robust security measures
C. Limiting the scope of the outsourcing agreement to specific logistics operations
D. Negotiating a contract that includes a termination clause
Question 2
A company's liability for a product defect is governed by the principles of
A. strict liability
B. negligence
C. breach of contract
D. unfair trade practices
Question 3
The 'principle of indemnity' is relevant to
A. insurance contracts
B. sales of goods
C. services
D. employment contracts
Question 4
A company purchases an insurance policy to cover against business interruption losses. The policy has a deductible of ₦500,000. What is the primary purpose of the deductible?
A. To reduce the premium payable
B. To increase the policy's coverage
C. To limit the insurer's liability
D. To enhance the company's cash flow
Question 5
The sole trader's business is a
A. sole proprietorship
B. partnership
C. limited liability company
D. cooperative society
Question 6
In a perfectly competitive market, the supply curve is typically represented by the marginal cost curve. What is the main reason for this?
A. The firm's production costs are constant and do not change with output.
B. The firm's production costs are variable and increase with output.
C. The firm's production costs are fixed and do not change with output.
D. The firm's production costs are a combination of fixed and variable costs.
Question 7
The 'principle of utmost good faith' is relevant to
A. insurance contracts
B. sales of goods
C. services
D. employment contracts
Question 8
A consumer is considering purchasing a product from a company that has a history of producing high-quality products. However, the consumer is concerned about the potential risks associated with the product, including the risk of product failure and the potential for the company to compromise the consumer's personal data. Which of the following is the most appropriate way for the consumer to mitigate these risks?
A. Reading online reviews of the product
B. Checking the company's website for product information
C. Contacting the company's customer service department
D. Purchasing a product from a different company
Question 9
A firm has the following production function: Q = 2L^0.5K^0.5 Where Q is output, L is labor, and K is capital. If the firm wants to produce 100 units of output, how many units of labor should it hire?
A. 10
B. 20
C. 30
D. 40
Question 10
A company is considering a new marketing strategy that involves partnering with a popular social media influencer. The influencer has a large following and is known for promoting products that align with the company's brand values. However, the company is concerned about the potential risks associated with partnering with an influencer, including the risk of negative publicity and the potential for the influencer to promote competing products. Which of the following is the most appropriate way for the company to mitigate these risks?
A. Negotiating a contract that includes a non-compete clause
B. Conducting a thorough background check on the influencer
C. Requiring the influencer to disclose any potential conflicts of interest
D. Limiting the scope of the partnership to a specific product or service
Question 11
The concept of 'caveat emptor' is relevant to
A. sales of goods
B. services
C. insurance contracts
D. employment contracts
Question 12
A consumer has the right to
A. claim damages for breach of contract
B. seek an injunction to prevent a breach
C. terminate a contract due to non-performance
D. withdraw from a contract within 7 days
Question 13
A warehouse manager uses a first-in-first-out (FIFO) inventory management system. What is the primary advantage of this system?
A. Reduced inventory costs
B. Improved inventory turnover
C. Enhanced customer service
D. Increased inventory accuracy
Question 14
A consumer has the right to
A. withdraw from a contract within 7 days
B. claim damages for breach of contract
C. seek an injunction to prevent a breach
D. terminate a contract due to non-performance
Question 15
A company's articles of association specify that the company's shares can be issued in the form of scrip. What is the primary purpose of this provision?
A. To facilitate the transfer of shares
B. To provide flexibility in share issuance
C. To increase the company's capital base
D. To reduce the company's administrative costs

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