POST UTME OAU 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A commercial bank's primary function is to act as a "warehouse" for the economy by providing a safe place for people to store their money. Which of the following is a correct description of this function?
A. To provide loans to customers
B. To act as a safe place for people to store their money
C. To facilitate the exchange of goods and services
D. To manage the risk of investments
Question 2
A firm's cost of production includes both fixed and variable costs. If the fixed cost is ₦5000 and the variable cost is ₦10 per unit, what is the total cost of producing 500 units?
A. ₦6000
B. ₦55000
C. ₦5000
D. ₦10000
Question 3
A company is considering exporting its products to a foreign market. The company has identified a potential customer who is interested in purchasing 1,000 units of the product. However, the customer is requesting a 30% discount on the price. What is the minimum price that the company can offer to the customer?
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 4
A company uses a just-in-time (JIT) inventory system. What is the primary advantage of using a JIT system?
A. It reduces inventory costs
B. It improves product quality
C. It increases production efficiency
D. It reduces lead times
Question 5
In a sole trade business, the owner's personal assets are not protected from business liabilities. Which of the following is a characteristic of a sole trade business?
A. Separate legal entity
B. Unlimited liability
C. Partnership
D. Limited liability
Question 6
A firm's revenue function is given by R = 100x - 2x^2, where x is the number of units sold. If the firm wants to maximize its revenue, how many units should it sell?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 7
A company's insurance policy covers losses due to natural disasters. Which of the following is a correct description of this type of insurance?
A. Liability insurance
B. Property insurance
C. Casualty insurance
D. Workers' compensation insurance
Question 8
A bank offers a 5% interest rate on deposits. If a customer deposits ₦100,000, what is the interest earned after 1 year?
A. 5,000
B. 10,000
C. 15,000
D. 20,000
Question 9
A sole trader's business is considered a "sole proprietorship" because it is owned and operated by one person. Which of the following is a correct description of this type of business?
A. A partnership between two or more people
B. A business owned and operated by one person
C. A corporation with multiple shareholders
D. A cooperative owned by its members
Question 10
A company uses a marketing strategy that involves creating a sense of urgency to encourage customers to make a purchase. What type of marketing strategy is this?
A. Scarcity marketing
B. Loss aversion marketing
C. Social proof marketing
D. Urgency marketing
Question 11
A business law firm is representing a client who is suing a company for breach of contract. The company has argued that the contract was void ab initio due to a lack of consideration. What is the likely outcome of the case?
A. The court will rule in favor of the company
B. The court will rule in favor of the client
C. The case will be dismissed
D. The case will be adjourned
Question 12
A foreign trade agreement between two countries involves the exchange of goods and services. Which of the following is a correct description of this type of agreement?
A. A bilateral trade agreement
B. A multilateral trade agreement
C. A free trade agreement
D. A protectionist trade agreement
Question 13
A company has two warehouses, A and B, with capacities of 1000 and 500 units, respectively. Warehouse A has 800 units of stock, while Warehouse B has 200 units. If the company wants to transfer 200 units from Warehouse A to Warehouse B, what will be the new stock levels in each warehouse?
A. Warehouse A: 600 units, Warehouse B: 400 units
B. Warehouse A: 700 units, Warehouse B: 300 units
C. Warehouse A: 800 units, Warehouse B: 200 units
D. Warehouse A: 900 units, Warehouse B: 100 units
Question 14
A company has a budget of ₦100,000 to invest in either a warehouse or a transportation system. The warehouse costs ₦80,000 and has a return on investment of 10%, while the transportation system costs ₦60,000 and has a return on investment of 15%. Which investment should the company choose?
A. Warehouse
B. Transportation system
C. Either investment is equally good
D. Neither investment is good
Question 15
A company exports goods to a foreign country and receives payment in a foreign currency. What type of trade is this?
A. Import
B. Export
C. Domestic trade
D. International trade

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