Practice Post UTME OSUSTECH commerce 2018 Past Questions

Question 1

A consumer protection agency is considering a new regulation to protect consumers from unfair business practices. Discuss the potential impact of the regulation on businesses and consumers.

A. The regulation will increase the costs of businesses, but it will also increase consumer confidence and trust in businesses.

B. The regulation will decrease the costs of businesses, but it will also decrease consumer confidence and trust in businesses.

C. The regulation will have no impact on businesses or consumers because it is simply a matter of enforcing existing laws.

D. The regulation will increase consumer confidence and trust in businesses, but it will also decrease the competitiveness of businesses.

Question 2

A company imports goods from a foreign country and sells them in Nigeria. What type of trade is this?

A. Export

B. Import

C. Domestic trade

D. International trade

Question 3

A bank is considering a new loan product to offer to its customers. Discuss the potential risks and benefits of the loan product.

A. The loan product will increase the risk of default by customers, but it will also increase the potential returns for the bank.

B. The loan product will decrease the risk of default by customers, but it will also decrease the potential returns for the bank.

C. The loan product will have no impact on the risk of default or the potential returns for the bank because it is simply a matter of offering a new product.

D. The loan product will increase the potential returns for the bank, but it will also increase the risk of default by customers.

Question 4

The Consumer Protection Act of 1999 provides for the establishment of the National Consumer Protection Agency. What is the primary function of this agency?

A. To investigate complaints from consumers

B. To regulate the activities of businesses

C. To provide education and awareness to consumers

D. To enforce consumer protection laws

Question 5

A bank offers a loan of ₦1,000,000 at an interest rate of 12% per annum. How much will the borrower pay after one year?

A. ₦1,120,000

B. ₦1,100,000

C. ₦1,080,000

D. ₦1,060,000

Question 6

The concept of specialization in production is closely related to the idea of comparative advantage. Discuss how specialization can lead to increased efficiency and productivity in a country's economy.

A. Specialization leads to increased efficiency and productivity because it allows countries to focus on producing goods and services in which they have a comparative advantage.

B. Specialization leads to decreased efficiency and productivity because it limits the variety of goods and services produced by a country.

C. Specialization has no impact on efficiency and productivity because it is simply a matter of producing more of the same goods and services.

D. Specialization leads to increased efficiency and productivity because it allows countries to take advantage of economies of scale.

Question 7

A company's business model involves selling products online through its website. The company's marketing strategy involves creating a sense of community among its customers. Which of the following is a likely benefit of this marketing strategy?

A. Increased customer loyalty

B. Increased sales

C. Improved brand image

D. Reduced marketing costs

Question 8

A firm's revenue is given by the equation R = 2x^2 + 5x - 3, where x is the number of units sold. If the firm sells 10 units, what is the revenue?

A. ₦23

B. ₦25

C. ₦27

D. ₦29

Question 9

A firm's revenue function is given by R = 100P - 2P^2. If the firm's price is 20, what is the firm's revenue?

A. 300

B. 400

C. 500

D. 600

Question 10

A firm is considering a new product launch. The product's expected sales are 10,000 units per year, with a price of ₦100 per unit. The variable cost per unit is ₦50, and the fixed cost is ₦500,000. What is the firm's expected profit?

A. ₦1,000,000

B. ₦1,500,000

C. ₦2,000,000

D. ₦2,500,000

Question 11

A company has a warehouse with a capacity of 10,000 units. If it receives a shipment of 5,000 units, what is the new capacity?

A. 10,000

B. 15,000

C. 20,000

D. 5,000

Question 12

The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost compared to other countries. Which of the following is a correct example of comparative advantage?

A. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.

B. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth, but Country A has a lower opportunity cost of producing cloth.

C. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth, but Country B has a lower opportunity cost of producing wheat.

D. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth, but both countries have the same opportunity cost of producing both goods.

Question 13

A company is considering a new business strategy to increase its market share. Discuss the potential impact of the strategy on the company's profits and competitiveness.

A. The strategy will increase the company's profits and competitiveness because it will allow the company to take advantage of new market opportunities.

B. The strategy will decrease the company's profits and competitiveness because it will increase the costs of the company.

C. The strategy will have no impact on the company's profits and competitiveness because it is simply a matter of adjusting the company's marketing efforts.

D. The strategy will increase the company's competitiveness, but it will also decrease its profits.

Question 14

A company has a portfolio of stocks and bonds with a total value of ₦10,000,000. The stocks have a beta of 1.2 and the bonds have a beta of 0.5. If the market risk premium is 8%, what is the expected return on the portfolio?

A. 12%

B. 10%

C. 8%

D. 6%

Question 15

A company is considering two different modes of transport for its goods: road transport and rail transport. Discuss the advantages and disadvantages of each mode of transport.

A. Road transport is more expensive than rail transport, but it is faster and more flexible.

B. Rail transport is more expensive than road transport, but it is safer and more environmentally friendly.

C. Road transport is safer than rail transport, but it is slower and less environmentally friendly.

D. Rail transport is faster than road transport, but it is more expensive and less flexible.

POST UTME OSUSTECH 2018 Commerce | Objective

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