POST UTME UNILAG 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company exports 100 units of goods to a foreign country. The cost of transportation is ₦5,000 per unit. If the exchange rate is 1 USD = ₦200, and the company earns a profit of 20% on the sale of each unit, what is the total profit in USD?
A. 1,000
B. 1,200
C. 1,500
D. 2,000
Question 2
A company's marketing strategy is most likely to be influenced by which of the following factors?
A. The company's target market
B. The company's production costs
C. The company's distribution channels
D. The company's financial resources
Question 3
A consumer's right to a refund or replacement is most likely to be protected by which of the following laws?
A. The Consumer Protection Act
B. The Sales of Goods Act
C. The Hire Purchase Act
D. The Consumer Credit Act
Question 4
A company is considering implementing a total quality management (TQM) system. What are the potential benefits and drawbacks of this decision?
A. Benefits: improved quality, increased customer satisfaction; Drawbacks: higher costs, potential cultural differences
B. Benefits: improved efficiency, reduced waste; Drawbacks: higher transportation costs, potential quality issues
C. Benefits: increased flexibility, improved innovation; Drawbacks: higher costs, potential quality issues
D. Benefits: improved supply chain management, reduced risk; Drawbacks: loss of control, potential quality issues
Question 5
A company has a stock of 500 units of goods, with a selling price of ₦10,000 per unit. If the company wants to maintain a stock level of 70% of its capacity, what is the minimum number of units that must be sold?
A. 200 units
B. 250 units
C. 300 units
D. 350 units
Question 6
The concept of 'marginal analysis' is most relevant in the context of
A. perfect competition
B. monopoly
C. monopolistic competition
D. oligopoly
Question 7
A company's marketing strategy involves a mix of push and pull strategies. Which of the following best describes the primary goal of a pull strategy?
A. To increase the company's market share
B. To create awareness about the product among the target audience
C. To encourage the target audience to make a purchase
D. To reduce the company's production costs
Question 8
A consumer's decision to purchase a product is most likely to be influenced by which of the following factors?
A. The product's price
B. The product's quality
C. The product's brand image
D. The product's packaging
Question 9
The concept of risk management in insurance involves identifying and assessing potential risks, then developing strategies to mitigate or transfer them. Which of the following is NOT a type of risk management strategy?
A. Avoidance
B. Transfer
C. Mitigation
D. Acceptance
Question 10
A company is considering expanding its operations into a new market. The company's management team has identified several potential locations, but they are unsure which one to choose. What is the primary factor that the management team should consider when making this decision?
A. The size of the potential market
B. The level of competition in the market
C. The cost of entry into the market
D. The potential for growth in the market
Question 11
A company has a sole proprietorship business structure. What are the disadvantages of this structure?
A. Easy to set up and maintain, unlimited personal liability, and passivity
B. Easy to set up and maintain, unlimited personal liability, and flexibility
C. Easy to set up and maintain, limited personal liability, and passivity
D. Easy to set up and maintain, limited personal liability, and flexibility
Question 12
A company has a warehouse with a capacity of 10,000 units. It receives an order for 8,000 units. If the warehouse is currently 70% full, what is the new percentage of capacity after fulfilling the order?
A. 60%
B. 65%
C. 70%
D. 75%
Question 13
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. What is the opportunity cost of producing a good?
A. The value of the good in terms of other goods that could be produced with the same resources
B. The cost of producing the good in terms of labor and capital
C. The price of the good in the market
D. The quantity of the good produced
Question 14
A company has a sole proprietorship business structure. What are the advantages of this structure?
A. Easy to set up and maintain, unlimited personal liability, and passivity
B. Easy to set up and maintain, unlimited personal liability, and flexibility
C. Easy to set up and maintain, limited personal liability, and passivity
D. Easy to set up and maintain, limited personal liability, and flexibility
Question 15
A company is considering outsourcing its production to a foreign country. What are the potential benefits and drawbacks of this decision?
A. Benefits: lower labor costs, increased efficiency; Drawbacks: loss of control, potential quality issues
B. Benefits: increased market share, improved brand image; Drawbacks: higher transportation costs, potential cultural differences
C. Benefits: improved supply chain management, reduced risk; Drawbacks: loss of jobs, potential trade barriers
D. Benefits: increased flexibility, improved innovation; Drawbacks: higher costs, potential quality issues

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