POST UTME OAU 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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
D. 0.95
Question 2
In a foreign trade transaction, a Nigerian exporter sold goods worth ₦5,000,000 to a foreign buyer. The exporter's bank charged a commission of 2% on the transaction value. If the exporter's bank also deducted a bank transfer fee of ₦25,000, what is the total amount received by the exporter?
A. ₦4,900,000
B. ₦4,925,000
C. ₦4,950,000
D. ₦5,000,000
Question 3
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
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
Question 4
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
C. Economic
D. Social
Question 5
In a foreign trade transaction, a Nigerian exporter sells a consignment of goods to a buyer in the United States. The exporter is paid in US dollars, but the exporter's bank charges a commission of 2% on the transaction value. If the transaction value is 10,000, what is the amount of commission paid to the exporter's bank?
A. ₦20,000
B. ₦200
C. ₦20
D. ₦2,000
Question 6
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
D. All of the above
Question 7
A consumer protection agency has the power to investigate complaints against businesses and to impose penalties for non-compliance with consumer protection laws. If a business is found to have engaged in unfair trade practices, what is the maximum penalty that the agency can impose?
A. ₦1 million
B. ₦5 million
C. ₦10 million
D. ₦50 million
Question 8
A company's marketing strategy involves a 10% discount on all products sold during a promotional period. If a customer purchases a product worth ₦10,000, what is the amount paid by the customer?
A. ₦9,000
B. ₦9,500
C. ₦10,000
D. ₦10,500
Question 9
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%
B. 20%
C. 30%
D. 40%
Question 10
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
D. All of the above
Question 11
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
D. Government regulations
Question 12
A company has a warehouse with a capacity of 10,000 units. If 8,000 units are already stored, what is the remaining capacity?
A. 1000
B. 2000
C. 5000
D. 8000
Question 13
A consumer protection agency has the power to investigate complaints against businesses and to impose penalties for non-compliance with consumer protection laws. If a business is found to have engaged in unfair trade practices, what is the first step that the agency should take?
A. Send a warning letter to the business
B. Conduct an investigation into the business's practices
C. Impose a penalty on the business
D. Close down the business
Question 14
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
D. Unpredictability
Question 15
A consumer protection agency received a complaint from a customer who purchased a defective product worth ₦20,000. The customer was offered a replacement product, but the agency discovered that the manufacturer had a history of producing defective products. What action should the agency take?
A. Order the manufacturer to recall all defective products
B. Compensate the customer with ₦25,000
C. Impose a fine on the manufacturer
D. Close the case

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