POST UTME OSUSTECH 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's insurance policy covers losses due to fire, theft, and natural disasters. However, the policy has a deductible clause that requires the company to pay the first ₦100,000 of any loss. Using the concept of insurance and risk management, determine the most appropriate course of action for the company in the event of a loss.
A. Pay the first ₦100,000 of the loss and claim the remaining amount from the insurance company
B. Pay the entire loss and claim no amount from the insurance company
C. Increase the deductible clause to ₦200,000
D. Discontinue the insurance policy
Question 2
A company's foreign trade involves importing goods from a country with a different currency. Which of the following is a risk associated with this transaction?
A. Exchange rate risk
B. Country risk
C. Political risk
D. All of the above
Question 3
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm wants to increase revenue by 10%, what percentage increase in price is required?
A. 5% increase in price
B. 10% increase in price
C. 15% increase in price
D. 20% increase in price
Question 4
A firm's foreign trade involves exporting goods to a country with a different currency. Which of the following is a risk associated with this transaction?
A. Exchange rate risk
B. Country risk
C. Political risk
D. All of the above
Question 5
A company has a share capital of ₦10,000,000, divided into 1,000,000 ordinary shares of ₦10 each. What is the company's authorized share capital?
A. ₦10,000,000
B. ₦20,000,000
C. ₦50,000,000
D. ₦100,000,000
Question 6
A company's risk management strategy involves identifying, assessing, and mitigating risks. Which of the following is a type of risk?
A. Financial Risk
B. Operational Risk
C. Strategic Risk
D. All of the above
Question 7
A sole trader has a business income of ₦500,000 and a business expense of ₦200,000. What is the sole trader's business profit?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 8
A company has a share capital of ₦10,000,000, divided into 1,000,000 ordinary shares of ₦10 each. What is the company's authorized share capital?
A. ₦10,000,000
B. ₦20,000,000
C. ₦30,000,000
D. ₦40,000,000
Question 9
The sole trader's business is not registered under the Companies and Allied Matters Act, 2020. What is the implication of this on the sole trader's liability?
A. The sole trader's liability is unlimited.
B. The sole trader's liability is limited to the amount of capital invested.
C. The sole trader's liability is limited to the amount of debt owed to creditors.
D. The sole trader's liability is not affected by the registration status.
Question 10
A company's risk management strategy involves identifying and mitigating risks. Which of the following is a type of risk that can be mitigated through diversification?
A. Market Risk
B. Credit Risk
C. Liquidity Risk
D. Operational Risk
Question 11
A company has a share capital of ₦20,000,000, divided into 2,000,000 ordinary shares of ₦10 each. What is the company's authorized share capital?
A. ₦20,000,000
B. ₦30,000,000
C. ₦40,000,000
D. ₦50,000,000
Question 12
A firm is considering the introduction of a new product line. Which of the following marketing strategies would be most appropriate for a new product launch?
A. Product differentiation
B. Market penetration
C. Market development
D. Diversification
Question 13
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm wants to increase revenue by 10%, what percentage increase in price is required?
A. 5% increase in price
B. 10% increase in price
C. 15% increase in price
D. 20% increase in price
Question 14
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is NOT a key objective of advertising in this context?
A. To create awareness about the company's products
B. To build brand loyalty
C. To increase sales revenue
D. To reduce production costs
Question 15
A consumer has a budget constraint of 100 units of currency and a preference for two goods, X and Y. The prices of X and Y are 5 units and 10 units, respectively. If the consumer spends all of their budget on good X, what is the maximum amount of good Y that they can purchase?
A. 5 units of good Y
B. 10 units of good Y
C. 15 units of good Y
D. 20 units of good Y

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