Practice Post UTME OAU commerce 2023 Past Questions

Question 1 View Details

A company's production function is given by the equation ( Q = 100L^0.5K^0.25 ), where Q is the quantity produced, L is the number of labor hours, and K is the capital invested. If the company wants to increase its production by 20% while keeping the capital invested constant, what percentage increase in labor hours is required?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 2 View Details

A sole trader, Mr. A, has a business that generates an annual revenue of ₦1,500,000. His fixed costs are ₦200,000, and his variable costs are ₦300,000. What is his break-even point in terms of the number of units sold, assuming each unit sells for ₦5,000?

A. 1000

Correct B. 1500

C. 2000

D. 2500

Correct Answer: B

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Question 3 View Details

A company has a warehouse with a capacity to store 10,000 units. The warehouse is currently 70% full, with 7,000 units stored. If the company receives an order for 1,500 units, what is the probability that the warehouse will be full after fulfilling the order?

A. 0.2

B. 0.3

C. 0.4

Correct D. 0.5

Correct Answer: D

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Question 4 View Details

A company has a production process that involves two stages: Stage 1 and Stage 2. The probability of success in Stage 1 is 0.8, and the probability of success in Stage 2 is 0.9, given that Stage 1 is successful. What is the probability that the production process will be successful?

A. 0.7

B. 0.8

C. 0.9

Correct D. 0.95

Correct Answer: D

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Question 5 View Details

A company has a marketing budget of ₦500,000. It plans to allocate 30% of the budget to advertising and 20% to promotion. What is the amount allocated to promotion?

A. ₦80,000

Correct B. ₦100,000

C. ₦120,000

D. ₦150,000

Correct Answer: B

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Question 6 View Details

A company's foreign trade policy is influenced by the following factors: political, economic, social, and technological. Which of the following is NOT a factor that affects a company's foreign trade policy?

Correct A. Environmental

B. Political

C. Economic

D. Social

Correct Answer: A

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Question 7 View Details

A firm's decision to export goods is influenced by the following factors: market demand, production costs, transportation costs, and exchange rates. Which of the following is NOT a factor that affects a firm's decision to export goods?

A. Market demand

B. Production costs

C. Transportation costs

Correct D. Government regulations

Correct Answer: D

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Question 8 View Details

A company's foreign trade policy is influenced by the following factors: political, economic, social, and technological. Which of the following is a factor that affects a company's foreign trade policy?

A. Environmental

Correct B. Political

C. Economic

D. Social

Correct Answer: B

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Question 9 View Details

A firm's decision to import goods is influenced by the following factors: market demand, production costs, transportation costs, and exchange rates. Which of the following is a factor that affects a firm's decision to import goods?

A. Market demand

B. Production costs

Correct C. Transportation costs

D. Government regulations

Correct Answer: C

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Question 10 View Details

A company's foreign trade policy is influenced by the following factors: political, economic, social, and technological. Which of the following is a factor that affects a company's foreign trade policy?

A. Environmental

B. Political

Correct C. Economic

D. Social

Correct Answer: C

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Question 11 View Details

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

B. Consistency

C. Relevance

Correct D. Unpredictability

Correct Answer: D

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Question 12 View Details

A firm's break-even point is the point at which its total revenue equals its total fixed costs. Which of the following is a factor that affects a firm's break-even point?

A. Selling price

B. Fixed costs

C. Variable costs

Correct D. All of the above

Correct Answer: D

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Question 13 View Details

A company's financial statement shows a net income of ₦1,500,000. Which of the following is a possible reason for this net income?

A. High sales revenue

B. Low operating expenses

C. High interest income

Correct D. All of the above

Correct Answer: D

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Question 14 View Details

A firm's marketing mix involves a combination of product, price, promotion, and place. Which of the following is NOT a characteristic of a successful marketing mix?

A. Relevance

B. Consistency

C. Flexibility

Correct D. Unpredictability

Correct Answer: D

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Question 15 View Details

A company's financial statement shows a net loss of ₦500,000. Which of the following is a possible reason for this net loss?

A. High operating expenses

B. Low sales revenue

C. High interest expense

Correct D. All of the above

Correct Answer: D

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Question 16 View Details

A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is NOT a primary goal of advertising in this context?

A. To inform customers about the company's products

B. To persuade customers to buy the company's products

Correct C. To entertain customers with the company's products

D. To educate customers about the company's products

Correct Answer: C

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Question 17 View Details

A firm's cost of capital is 10% per annum. If it invests in a project with a net present value (NPV) of ₦1,500,000, what is the expected rate of return on the investment?

A. 10%

Correct B. 12%

C. 15%

D. 18%

Correct Answer: B

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Question 18 View Details

A consumer protection agency has received complaints about a company's unfair business practices. Which of the following is a possible remedy for the consumers?

A. Compensation for damages suffered

B. Restoration of the status quo ante

C. Injunction to stop the unfair practice

Correct D. All of the above

Correct Answer: D

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Question 19 View Details

A firm's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is a primary goal of public relations in this context?

A. To inform customers about the company's products

B. To persuade customers to buy the company's products

Correct C. To build goodwill and reputation for the company

D. To entertain customers with the company's products

Correct Answer: C

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Question 20 View Details

A firm's cost of capital is 12% per annum. If it invests in a project with a net present value (NPV) of ₦2,000,000, what is the expected rate of return on the investment?

Correct A. 12%

B. 15%

C. 18%

D. 20%

Correct Answer: A

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Question 21 View Details

Under the Consumer Protection Act, what is the primary responsibility of a consumer in a contract?

A. To ensure the product is of satisfactory quality

Correct B. To ensure the product is fit for purpose

C. To ensure the product is as described

D. To ensure the product is delivered on time

Correct Answer: B

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Question 22 View Details

A company has a warehouse with a capacity of 10,000 units. If 8,000 units are already stored, what is the remaining capacity?

Correct A. 1000

B. 2000

C. 5000

D. 8000

Correct Answer: A

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Question 23 View Details

A business has a profit of ₦500,000. If it has a tax rate of 20%, how much will it pay in taxes?

A. ₦100000

Correct B. ₦200000

C. ₦300000

D. ₦400000

Correct Answer: B

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Question 24 View Details

A company uses the following marketing mix: product, price, promotion, and place. What is the primary goal of this mix?

A. To increase sales

B. To reduce costs

C. To improve customer satisfaction

Correct D. To increase market share

Correct Answer: D

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Question 25 View Details

A bank has a reserve requirement of 10%. If it has a deposit of ₦1,000,000, how much must it reserve?

Correct A. ₦100000

B. ₦200000

C. ₦300000

D. ₦400000

Correct Answer: A

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