Practice Post UTME OAU commerce 2022 Past Questions

Question 1

A firm's production function is given by Q = 2L^0.4K^0.3, where Q is output, L is labor, and K is capital. If the firm wants to increase output by 20% while keeping labor constant, how much should it increase its capital?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 2

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?

Correct 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

Correct Answer: A

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Question 3

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

Correct B. 20 units

C. 30 units

D. 40 units

Correct Answer: B

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Question 4

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

Correct B. Transportation system

C. Either investment is equally good

D. Neither investment is good

Correct Answer: B

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Question 5

A firm's production function is given by Q = 2L^0.4K^0.3, where Q is output, L is labor, and K is capital. If the firm wants to increase output by 20% while keeping labor constant, how much should it increase its capital?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 6

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

Correct 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

Correct Answer: B

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Question 7

A company's marketing strategy involves creating a new product line to target a specific demographic. Which of the following is a correct description of this strategy?

A. Product differentiation

Correct B. Market segmentation

C. Target marketing

D. Positioning

Correct Answer: B

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Question 8

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

Correct B. A business owned and operated by one person

C. A corporation with multiple shareholders

D. A cooperative owned by its members

Correct Answer: B

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Question 9

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

Correct B. Property insurance

C. Casualty insurance

D. Workers' compensation insurance

Correct Answer: B

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Question 10

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?

Correct A. A bilateral trade agreement

B. A multilateral trade agreement

C. A free trade agreement

D. A protectionist trade agreement

Correct Answer: A

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Question 11

A bank's cash reserve ratio is 20%. If the bank has a cash reserve of ₦1,000,000, what is the maximum amount it can lend to its customers?

Correct A. ₦4,000,000

B. ₦5,000,000

C. ₦6,000,000

D. ₦7,000,000

Correct Answer: A

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Question 12

A company's sole trader has a profit of ₦500,000. If the company's tax rate is 25%, what is the amount of tax the sole trader must pay?

Correct A. ₦125,000

B. ₦150,000

C. ₦175,000

D. ₦200,000

Correct Answer: A

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Question 13

A warehouse has a storage capacity of 10,000 units. If the warehouse is currently storing 8,000 units, what is the maximum number of units that can be added to the warehouse?

A. 1,000

B. 2,000

C. 3,000

Correct D. 4,000

Correct Answer: D

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Question 14

A company has a foreign trade agreement with a country that has a currency exchange rate of 1 USD = 360 Naira. If the company imports goods worth 10,000, what is the total cost in Naira?

Correct A. ₦3,600,000

B. ₦3,600,000

C. ₦3,600,000

D. ₦3,600,000

Correct Answer: A

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Question 15

A bank's interest rate is 10% per annum. If a customer deposits ₦100,000 for 2 years, what is the total interest earned?

A. ₦20,000

B. ₦21,000

Correct C. ₦22,000

D. ₦23,000

Correct Answer: C

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Question 16

A company's foreign trade involves exporting goods worth ₦500 million to a foreign country. If the exchange rate is 1 USD = ₦400, what is the value of the exported goods in USD?

Correct A. 1,250,000

B. 1,000,000

C. 1,500,000

D. 2,000,000

Correct Answer: A

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Question 17

A warehouse has a storage capacity of 10,000 cubic meters. If the warehouse is currently storing goods with a volume of 5,000 cubic meters, what is the remaining storage capacity?

Correct A. 2,000

B. 5,000

C. 10,000

D. 20,000

Correct Answer: A

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Question 18

A company has a policy of paying its employees a 10% bonus on their annual salary. If an employee's annual salary is ₦500,000, what is the value of the bonus?

Correct A. 50,000

B. 60,000

C. 70,000

D. 80,000

Correct Answer: A

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Question 19

A bank offers a 5% interest rate on deposits. If a customer deposits ₦100,000, what is the interest earned after 1 year?

Correct A. 5,000

B. 10,000

C. 15,000

D. 20,000

Correct Answer: A

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Question 20

A company's insurance policy has a deductible of ₦50,000. If the company incurs a loss of ₦200,000, what is the amount paid by the insurance company?

Correct A. 150,000

B. 150,000

C. 200,000

D. 250,000

Correct Answer: A

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Question 21

In a warehouse with a capacity of 10,000 units, the stock level is currently at 8,000 units. The warehouse manager wants to maintain a safety stock of 20% of the total capacity. What is the minimum number of units that should be ordered to maintain the desired safety stock?

A. 1,600

B. 2,000

Correct C. 2,400

D. 3,200

Correct Answer: C

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Question 22

A company is considering two different insurance policies to cover its business risks. Policy A has a premium of ₦10,000 and a deductible of ₦5,000. Policy B has a premium of ₦15,000 and a deductible of ₦2,000. If the company expects to incur a loss of ₦20,000, which policy would be more cost-effective?

Correct A. Policy A

B. Policy B

C. Both policies are equally cost-effective

D. Neither policy is cost-effective

Correct Answer: A

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Question 23

A consumer protection agency is investigating a complaint about a company that has been selling defective products. The company has a policy of replacing defective products within 30 days of purchase. However, the consumer claims that the company has been refusing to replace the defective products. What is the likely outcome of the investigation?

A. The company will be fined ₦100,000

Correct B. The company will be ordered to replace the defective products

C. The consumer will be required to pay for the replacement

D. The investigation will be dropped

Correct Answer: B

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Question 24

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?

Correct A. ₦80,000

B. ₦90,000

C. ₦100,000

D. ₦110,000

Correct Answer: A

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Question 25

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

Correct B. The court will rule in favor of the client

C. The case will be dismissed

D. The case will be adjourned

Correct Answer: B

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