Practice Post UTME OAU commerce 2019 Past Questions

Question 1

In a warehouse with a capacity of 10,000 units, the inventory level is currently at 8,000 units. If the warehouse receives a shipment of 2,000 units and 1,500 units are sold, what is the new inventory level?

A. 6,000

Correct B. 7,500

C. 8,500

D. 9,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 2

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?

Correct A. ₦8,000

B. ₦9,000

C. ₦10,000

D. ₦12,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 3

A sole trader has a business income of ₦500,000 and expenses of ₦200,000. What is the profit before tax?

Correct A. ₦300,000

B. ₦400,000

C. ₦500,000

D. ₦600,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 4

A company uses the First-In-First-Out (FIFO) inventory method. If the cost of goods sold is ₦1,500,000 and the total inventory value is ₦2,500,000, what is the cost of goods available for sale?

A. ₦3,000,000

B. ₦3,500,000

Correct C. ₦4,000,000

D. ₦4,500,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 5

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

Correct C. ₦300,000

D. ₦350,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 6

In a perfectly competitive market, the supply curve is perfectly elastic. What is the implication of this on the firm's profit-maximizing output?

A. The firm will produce at the minimum point of the average total cost curve.

Correct B. The firm will produce at the point where marginal revenue equals marginal cost.

C. The firm will produce at the point where the demand curve intersects the average revenue curve.

D. The firm will produce at the point where the supply curve intersects the demand curve.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 7

A company has a warehouse with a capacity of 10,000 units. The company receives an order for 8,000 units. What is the most appropriate inventory control method to use in this situation?

A. First-In-First-Out (FIFO)

B. Last-In-First-Out (LIFO)

C. First-Come-First-Served (FCFS)

Correct D. Just-In-Time (JIT)

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 8

A life insurance policy has a premium of ₦10,000 per annum. The policy pays a benefit of ₦500,000 in the event of the policyholder's death. What is the probability of the policyholder dying within the next 10 years?

A. 0.05

Correct B. 0.10

C. 0.15

D. 0.20

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 9

A company is considering launching a new product. The company has estimated that the product will have a market share of 20% within the first year. What is the most appropriate marketing strategy to use in this situation?

A. Product differentiation

Correct B. Market segmentation

C. Positioning

D. Pricing

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 10

A company has a budget of ₦1,000,000 for advertising. The company wants to allocate the budget across three different media channels: television, radio, and print. What is the most appropriate allocation of the budget?

Correct A. Television: 40%, Radio: 30%, Print: 30%

B. Television: 30%, Radio: 40%, Print: 30%

C. Television: 20%, Radio: 40%, Print: 40%

D. Television: 50%, Radio: 20%, Print: 30%

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 11

The Consumer Protection Act of 1999 in Nigeria provides for the protection of consumers from unfair trade practices. Which of the following is a key provision of the Act?

A. The Act provides for the establishment of a Consumer Protection Council.

Correct B. The Act provides for the protection of consumers from unfair trade practices.

C. The Act provides for the establishment of a Consumer Protection Agency.

D. The Act provides for the protection of consumers from false or misleading advertisements.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 12

A company is considering the establishment of a sole trade business. What is the primary advantage of a sole trade business?

Correct A. Sole trade businesses are easier to establish and manage.

B. Sole trade businesses are more profitable than companies.

C. Sole trade businesses are less risky than companies.

D. Sole trade businesses are more flexible than companies.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 13

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.

Correct C. The bank's social responsibility.

D. The bank's market share.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 14

A company is considering the use of just-in-time inventory management system. What is the primary advantage of this system?

A. Reduced inventory costs.

Correct B. Improved inventory turnover.

C. Increased inventory levels.

D. Reduced production costs.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 15

A consumer is considering the purchase of a product from a company. What is the primary consideration for the consumer?

A. The product's price.

Correct B. The product's quality.

C. The company's reputation.

D. The product's packaging.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 16

A sole trader's business is considered a separate legal entity from its owner. What is the primary advantage of this separation?

Correct A. Limited liability

B. Separate taxation

C. Increased credibility

D. Easier business closure

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 17

A company's marketing strategy involves creating a new product line. Which of the following is a key consideration in this decision?

Correct A. Market demand

B. Production costs

C. Competition analysis

D. Supply chain management

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 18

A business is considering outsourcing its production process. What is the primary benefit of this decision?

A. Reduced labor costs

Correct B. Increased flexibility

C. Improved quality control

D. Enhanced brand reputation

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 19

A company's foreign trade involves exporting goods to a country with a different currency. What is the primary consideration in this transaction?

Correct A. Exchange rate fluctuations

B. Tariffs and duties

C. Cultural differences

D. Language barriers

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 20

A business is considering a new marketing strategy. Which of the following is a key consideration in this decision?

Correct A. Target market analysis

B. Competitor analysis

C. Product life cycle

D. Supply chain management

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 21

A company's marketing strategy involves a mix of advertising, sales promotion, and public relations. Which of the following is NOT a characteristic of a successful marketing strategy?

A. Flexibility

Correct B. Focus on a single target market

C. Use of a wide range of marketing tools

D. Long-term orientation

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 22

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 wage rate is 10 per hour, what is the minimum number of workers the firm must hire to produce this output?

A. 4 workers

B. 6 workers

Correct C. 8 workers

D. 10 workers

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 23

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

Correct D. All of the above

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 24

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 wage rate is 10 per hour, what is the minimum number of workers the firm must hire to produce this output?

A. 4 workers

B. 6 workers

Correct C. 8 workers

D. 10 workers

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 25

A firm's marketing strategy involves a mix of advertising, sales promotion, and public relations. Which of the following is a characteristic of a successful marketing strategy?

A. Flexibility

B. Focus on a single target market

Correct C. Use of a wide range of marketing tools

D. Long-term orientation

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

POST UTME OAU 2019 Commerce | Objective

Master the Exam!

Help others prepare! Share this practice hub: