Practice Post UTME OSUSTECH commerce 2022 Past Questions

Question 1

In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing costs. What is the primary reason for this upward-sloping supply curve?

Correct A. Increasing marginal costs

B. Decreasing marginal revenue

C. Increasing fixed costs

D. Decreasing variable costs

Correct Answer: A

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Question 2

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?

A. 5% increase

Correct B. 10% increase

C. 15% increase

D. 20% increase

Correct Answer: B

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Question 3

A bank's balance sheet is given by Assets = Liabilities + Equity. If the bank's assets increase by 10% and its liabilities decrease by 5%, what is the percentage change in its equity?

A. 5% increase

B. 10% increase

Correct C. 15% increase

D. 20% increase

Correct Answer: C

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Question 4

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

Correct D. 20% decrease

Correct Answer: D

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Question 5

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?

A. 5% increase

Correct B. 10% increase

C. 15% increase

D. 20% increase

Correct Answer: B

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Question 6

A company uses the following transportation modes: road, rail, air, and sea. If the company's total transportation cost is ₦1,500,000, and the cost of using road is ₦300,000, while the cost of using rail is ₦200,000, what is the total cost of using air and sea transportation?

A. ₦1,000,000

Correct B. ₦1,200,000

C. ₦1,500,000

D. ₦1,800,000

Correct Answer: B

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Question 7

A firm's marketing strategy involves creating a brand image that is perceived as unique and memorable. Which of the following marketing tools is most likely to achieve this goal?

Correct A. Packaging

B. Advertising

C. Promotion

D. Public Relations

Correct Answer: A

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Question 8

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

Correct D. 7,000

Correct Answer: D

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Question 9

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?

Correct A. ₦50,000

B. ₦100,000

C. ₦150,000

D. ₦200,000

Correct Answer: A

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Question 10

A company uses the following inventory management system: first-in, first-out (FIFO). If the company has 100 units of a product with a cost of ₦100 per unit, and the company sells 50 units, what is the total cost of the units sold?

A. ₦5,000

Correct B. ₦10,000

C. ₦15,000

D. ₦20,000

Correct Answer: B

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Question 11

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

Correct D. ₦20,000,000

Correct Answer: D

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Question 12

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?

Correct A. Strategy A

B. Strategy B

C. Both strategies are equally viable

D. Neither strategy is viable

Correct Answer: A

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Question 13

A bank has a loan portfolio of ₦10,000,000,000 with an average interest rate of 10%. If the bank decides to increase the interest rate by 2%, what will be the new total value of the loan portfolio?

A. ₦11,000,000,000

Correct B. ₦11,200,000,000

C. ₦11,400,000,000

D. ₦11,600,000,000

Correct Answer: B

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Question 14

A company has a production capacity of 10,000 units per day. If the company operates for 20 days, what will be the total production?

A. 200,000 units

B. 250,000 units

Correct C. 300,000 units

D. 400,000 units

Correct Answer: C

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Question 15

A firm is considering two different production strategies for its new product. Strategy A involves a high fixed cost of ₦5,000,000, but a low variable cost of ₦1,000 per unit. Strategy B involves a low fixed cost of ₦1,000,000, but a high variable cost of ₦5,000 per unit. Which strategy should the firm choose?

Correct A. Strategy A

B. Strategy B

C. Both strategies are equally viable

D. Neither strategy is viable

Correct Answer: A

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Question 16

A sole trader's business is considered a separate legal entity from its owner. However, this separation is not absolute. Discuss the implications of this separation on the sole trader's liability and taxation.

A. The sole trader's liability is limited to the business's assets.

Correct B. The sole trader's liability is unlimited, and they can be held personally responsible for business debts.

C. The sole trader's liability is limited to the business's profits.

D. The sole trader's liability is unlimited, but they can claim business expenses as deductions.

Correct Answer: B

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Question 17

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.

Correct D. The memorandum of association is a document that outlines the company's objectives and powers, and it is binding on the company.

Correct Answer: D

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Question 18

A company's articles of association are a document that outlines the company's internal management and governance. Discuss the importance of this document in the company's operations and its role in protecting the rights of shareholders.

A. The articles of association are a public document that outlines the company's internal management and governance.

B. The articles of association are a private document that outlines the company's internal management and governance.

C. The articles of association are a document that outlines the company's internal management and governance, but it is not binding on the company.

Correct D. The articles of association are a document that outlines the company's internal management and governance, and it is binding on the company.

Correct Answer: D

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Question 19

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 differences between these two documents and their roles in the company's operations.

A. The memorandum of association outlines the company's objectives and powers, while the articles of association outline the company's internal management.

B. The memorandum of association outlines the company's internal management, while the articles of association outline the company's objectives and powers.

C. The memorandum of association and articles of association are interchangeable terms that refer to the same document.

Correct D. The memorandum of association and articles of association are two separate documents that outline the company's objectives, powers, and internal management.

Correct Answer: D

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Question 20

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.

Correct 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.

Correct Answer: D

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Question 21

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

Correct A. To create awareness about the company's products

B. To build brand loyalty

C. To increase sales volume

D. To reduce production costs

Correct Answer: A

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Question 22

A sole trader's business is registered with the Corporate Affairs Commission (CAC). What is the primary advantage of this registration?

A. Limited liability

Correct B. Separate legal entity

C. Increased credibility

D. Reduced tax liability

Correct Answer: B

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Question 23

A bank's cash reserve ratio is 10%. If the bank has a cash reserve of ₦1,000,000, what is the maximum amount of loans it can give to customers?

Correct A. ₦9,000,000

B. ₦10,000,000

C. ₦11,000,000

D. ₦12,000,000

Correct Answer: A

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Question 24

A company's marketing mix involves a product with a unique selling proposition (USP). Which of the following is a characteristic of a USP?

A. It is a product feature that is available in the market

Correct B. It is a product feature that differentiates the product from competitors

C. It is a product feature that is not available in the market

D. It is a product feature that is not relevant to customers

Correct Answer: B

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Question 25

A sole trader's business is not registered with the Corporate Affairs Commission (CAC). What is the primary disadvantage of this?

Correct A. Limited liability

B. Separate legal entity

C. Increased credibility

D. Reduced tax liability

Correct Answer: A

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