POST UTME OSUSTECH 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering exporting its products to a foreign market. What is the first step it should take?
A. Conduct market research to identify potential customers
B. Develop a marketing strategy to promote its products
C. Establish a distribution network to deliver its products
D. Obtain necessary export licenses and permits
Question 2
A company exports goods to a foreign country using the Incoterms 2020 rules. Which of the following Incoterms would be most suitable for this transaction?
A. EXW (Ex Works)
B. FCA (Free Carrier)
C. CPT (Carriage Paid To)
D. DAP (Delivered At Place)
Question 3
A company uses a third-party logistics provider to manage its supply chain. What is the primary benefit of this arrangement?
A. Reduced transportation costs
B. Improved inventory management
C. Enhanced customer service
D. Increased flexibility in responding to changes in demand
Question 4
A firm is considering two different production processes for a product. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit. Process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the firm produces 1,000 units of the product, which process will result in lower total cost?
A. Process A
B. Process B
C. Both processes will result in the same total cost
D. Neither process will result in a lower total cost
Question 5
A company is considering entering into a contract with a supplier. The supplier has a reputation for delivering goods late. What type of risk is the company taking on?
A. Commercial risk
B. Operational risk
C. Reputational risk
D. Strategic risk
Question 6
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is the quantity produced, L is the number of laborers, and H is the number of machines. If the firm wants to produce 16 units of output, and it has 4 laborers, how many machines (H) should it hire?
A. 2
B. 4
C. 8
D. 16
Question 7
A consumer purchases a product from a retailer, but the product is not as described. What is the consumer's remedy?
A. The consumer can sue the retailer for damages
B. The consumer can return the product to the retailer
C. The consumer can seek a refund from the retailer
D. The consumer can cancel the contract
Question 8
A company is considering investing in a new warehouse to store its inventory. What is the primary factor it should consider?
A. The cost of construction
B. The location of the warehouse
C. The size of the warehouse
D. The security features of the warehouse
Question 9
A bank has a loan of ₦1,000,000 at an interest rate of 12% per annum. If the loan is compounded annually, what is the amount after 5 years?
A. ₦1,917,918
B. ₦1,849,849
C. ₦1,800,000
D. ₦1,700,000
Question 10
A company is considering the use of a new transportation method to reduce its costs. The company is evaluating the following options: rail, road, and sea. Which of the following factors is most likely to influence the company's decision?
A. Fuel costs
B. Environmental impact
C. Infrastructure costs
D. Safety record
Question 11
A company is considering two different marketing strategies for its new product. Strategy A involves a high initial investment in advertising, but the company expects a high return on investment (ROI) in the long run. Strategy B involves a lower initial investment in advertising, but the company expects a lower ROI. Which strategy is more likely to be adopted by a company that is risk-averse?
A. Strategy A
B. Strategy B
C. Both strategies are equally likely to be adopted
D. Neither strategy is likely to be adopted
Question 12
A company is considering the introduction of a new product line. The product requires a significant investment in research and development, but it is expected to generate substantial revenue. Which of the following business units is most likely to be responsible for making this decision?
A. Sole Trader
B. Limited Liability Company
C. Joint Venture
D. Partnership
Question 13
A company has a 10% chance of losing a lawsuit, and a 20% chance of winning a lawsuit. What is the expected value of the lawsuit?
A. ₦100
B. ₦200
C. ₦0
D. ₦500
Question 14
A company is considering the introduction of a new product line. The product requires a significant investment in research and development, but it is expected to generate substantial revenue. Which of the following business units is most likely to be responsible for making this decision?
A. Sole Trader
B. Limited Liability Company
C. Joint Venture
D. Partnership
Question 15
A company is considering exporting goods to a foreign country. What type of risk is the company taking on?
A. Commercial risk
B. Operational risk
C. Reputational risk
D. Strategic risk

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