POST UTME OAU 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's articles of association state that the company's business is to be carried on for the benefit of its members. Which of the following is a characteristic of this type of company?
A. The company is a public company
B. The company is a private company
C. The company is a limited liability partnership
D. The company is a sole trader
Question 2
A company's marketing budget is ₦1,000,000. If the company allocates 30% of the budget to advertising and 20% to promotion, what is the amount allocated to advertising?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 3
A consumer purchases a product from a retailer, but the product is defective. The consumer returns the product to the retailer, who refuses to accept it. Which of the following is the consumer's best course of action?
A. To sue the retailer for breach of contract
B. To return the product to the manufacturer
C. To seek a refund from the retailer
D. To report the incident to the consumer protection agency
Question 4
A bank is considering the establishment of a new branch in a rural area. What is the primary consideration for the bank?
A. The bank's profitability.
B. The bank's risk exposure.
C. The bank's social responsibility.
D. The bank's market share.
Question 5
A firm's foreign trade involves exporting goods to a country with a different currency. Which of the following is a risk associated with this type of trade?
A. Exchange rate risk
B. Country risk
C. Product risk
D. All of the above
Question 6
A firm is considering two different investment options. Option A has a expected return of 15% per annum and a standard deviation of 10%. Option B has a expected return of 12% per annum and a standard deviation of 8%. Which option is riskier?
A. Option A
B. Option B
C. Both options are equally risky
D. Neither option is risky
Question 7
A sole trader is considering two different business options. Option A involves starting a small retail business, while Option B involves starting a large manufacturing business. Which option is more likely to result in a higher profit?
A. Option A
B. Option B
C. Both options are equally likely to result in a higher profit
D. Neither option is likely to result in a higher profit
Question 8
A company is considering investing in a new project that has a expected return of 12% per annum. The company's cost of capital is 8% per annum. What is the expected internal rate of return of the project?
A. 8%
B. 10%
C. 12%
D. 15%
Question 9
A sole trader has a business income of ₦500,000 and expenses of ₦200,000. What is the profit before tax?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 10
A company's marketing strategy involves a 20% discount on all products for the first week of a new product launch. If the original price of the product is ₦10,000, what is the discounted price?
A. ₦8,000
B. ₦9,000
C. ₦10,000
D. ₦12,000
Question 11
A bank is considering two different loan options for a customer. Option A has a fixed interest rate of 10% per annum and a repayment period of 5 years. Option B has a variable interest rate of 15% per annum and a repayment period of 3 years. Which option is more favorable to the customer?
A. Option A
B. Option B
C. Both options are equally favorable
D. Neither option is favorable
Question 12
A company's foreign trade involves exporting goods to a country with a different currency. What is the primary consideration in this transaction?
A. Exchange rate fluctuations
B. Tariffs and duties
C. Cultural differences
D. Language barriers
Question 13
A consumer purchases a product from a retailer, but the product is defective. The consumer returns the product to the retailer, who refuses to accept it. Which of the following is the consumer's best course of action?
A. To sue the retailer for breach of contract
B. To return the product to the manufacturer
C. To seek a refund from the retailer
D. To report the incident to the consumer protection agency
Question 14
A company is considering two different marketing strategies for a new product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. Which strategy is more likely to result in a higher sales revenue?
A. Strategy A
B. Strategy B
C. Both strategies are equally likely to result in a higher sales revenue
D. Neither strategy is likely to result in a higher sales revenue
Question 15
A business is considering a new marketing strategy. Which of the following is a key consideration in this decision?
A. Target market analysis
B. Competitor analysis
C. Product life cycle
D. Supply chain management

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