POST UTME OSUSTECH 2022 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. The policy has a deductible of ₦500,000 and a maximum payout of ₦5,000,000. If the company suffers a loss of ₦6,000,000 due to a fire, what is the amount that the insurance company will pay?
A. ₦4,500,000
B. ₦5,000,000
C. ₦6,000,000
D. ₦7,500,000
Question 2
A company is considering two different insurance policies to cover its business operations. Policy A has a premium of ₦150,000 and a deductible of ₦50,000. Policy B has a premium of ₦120,000 and a deductible of ₦20,000. If the company expects to incur an average loss of ₦80,000 per year, which policy would be more cost-effective?
A. Policy A
B. Policy B
C. Both policies are equally cost-effective
D. Neither policy is cost-effective
Question 3
A company has a warehouse with a capacity of 10,000 units. If the company receives an order for 5,000 units and has 3,000 units in stock, what is the total number of units that can be shipped to the customer?
A. 2,000
B. 3,000
C. 5,000
D. 7,000
Question 4
A company has a portfolio of 5 stocks with a total value of ₦10,000,000. If the company decides to diversify its portfolio by adding 3 more stocks, each with a value of ₦1,500,000, what will be the new total value of the portfolio?
A. ₦12,500,000
B. ₦15,000,000
C. ₦17,500,000
D. ₦20,000,000
Question 5
A company's memorandum of association and articles of association are two separate documents that outline the company's objectives, powers, and internal management. Discuss the importance of these two documents in the company's operations and their roles in protecting the rights of shareholders.
A. The memorandum of association and articles of association are two separate documents that outline the company's objectives, powers, and internal management.
B. The memorandum of association and articles of association are interchangeable terms that refer to the same document.
C. The memorandum of association and articles of association are two separate documents that outline the company's objectives, powers, and internal management, but they are not binding on the company.
D. The memorandum of association and articles of association are two separate documents that outline the company's objectives, powers, and internal management, and they are binding on the company.
Question 6
A country's balance of payments is a statistical statement that summarizes its international transactions over a specific period. What is the purpose of the current account?
A. To show the country's trade in goods and services
B. To show the country's income and savings
C. To show the country's capital and financial account
D. To show the country's errors and omissions
Question 7
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. Which of the following is an example of a country that has a comparative advantage in producing a good?
A. A country with a large labor force and low wages
B. A country with a small labor force and high wages
C. A country with a large land area and fertile soil
D. A country with a small land area and poor soil
Question 8
A firm's insurance policy has a deductible of ₦50,000. If the firm suffers a loss of ₦200,000, what is the amount that the firm must pay out of pocket?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 9
A company's memorandum of association is a document that outlines the company's objectives and powers. Discuss the importance of this document in the company's operations and its role in protecting the rights of shareholders.
A. The memorandum of association is a public document that outlines the company's objectives and powers.
B. The memorandum of association is a private document that outlines the company's objectives and powers.
C. The memorandum of association is a document that outlines the company's objectives and powers, but it is not binding on the company.
D. The memorandum of association is a document that outlines the company's objectives and powers, and it is binding on the company.
Question 10
A warehouse manager wants to calculate the optimal storage capacity for a new warehouse. The warehouse will store boxes of different sizes, with an average weight of 20 kg per box. The warehouse has a maximum capacity of 5000 kg. What is the maximum number of boxes that can be stored in the warehouse?
A. 250
B. 300
C. 350
D. 400
Question 11
A sole trader's business is registered with the Corporate Affairs Commission (CAC). What is the primary advantage of this registration?
A. Limited liability
B. Separate legal entity
C. Increased credibility
D. Reduced tax liability
Question 12
A company's cost of capital is the minimum return that investors require for their investment. What is the effect of a decrease in the cost of capital on a company's weighted average cost of capital?
A. It increases the weighted average cost of capital
B. It decreases the weighted average cost of capital
C. It has no effect on the weighted average cost of capital
D. It increases the risk of bankruptcy
Question 13
A firm is considering two different marketing strategies for its new product. Strategy A involves a high initial investment of ₦5,000,000, but is expected to generate ₦10,000,000 in revenue. Strategy B involves a low initial investment of ₦1,000,000, but is expected to generate ₦5,000,000 in revenue. Which strategy should the firm choose?
A. Strategy A
B. Strategy B
C. Both strategies are equally viable
D. Neither strategy is viable
Question 14
A firm's demand function is given by Q = 100 - 2P. If the price of the good is increased by 20%, what is the percentage change in quantity demanded?
A. 5% decrease
B. 10% decrease
C. 15% decrease
D. 20% decrease
Question 15
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). What is the primary disadvantage of this?
A. Limited liability
B. Separate legal entity
C. Increased credibility
D. Reduced tax liability

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