POST UTME UNILAG 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's insurance policy covers losses due to 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 ₦2,000,000 due to a natural disaster, what is the amount that the insurance company will pay?
A. ₦1,500,000
B. ₦2,000,000
C. ₦3,500,000
D. ₦4,500,000
Question 2
A company uses a just-in-time (JIT) inventory system to manage its inventory levels. Which of the following is a key benefit of JIT?
A. Reduced inventory costs
B. Improved quality control
C. Increased flexibility
D. Enhanced customer service
Question 3
A company is considering two different production processes: a traditional process and a modern process. The traditional process is less expensive, but it also has a higher level of waste. Which process is more likely to result in a higher profit margin?
A. Traditional process
B. Modern process
C. Both processes are equally profitable
D. It depends on the market conditions
Question 4
In a competitive market, a firm's demand curve is downward sloping. What is the likely effect of an increase in the firm's price on its revenue?
A. Increase in revenue
B. Decrease in revenue
C. No change in revenue
D. Uncertain effect on revenue
Question 5
A firm is considering a new product launch. The product has a high level of demand, but it also has a high level of competition. What is the likely effect of the firm's marketing strategy on the product's success?
A. The marketing strategy will increase the product's success
B. The marketing strategy will decrease the product's success
C. The marketing strategy will have no effect on the product's success
D. It depends on the market conditions
Question 6
A firm is considering two different production processes for its product. Process A involves a higher upfront cost of ₦20 million but is expected to produce 1000 units per day. Process B involves a lower upfront cost of ₦10 million but is expected to produce 500 units per day. Which process has a higher total output over the next 5 years if the production rate is constant?
A. Process A
B. Process B
C. Both processes have the same total output
D. Neither process has a higher total output
Question 7
A sole trader's business is exposed to various risks, including market risk, credit risk, and operational risk. Which of the following is a way to manage operational risk?
A. Diversification
B. Hedging
C. Risk transfer
D. Contingency planning
Question 8
A company's marketing strategy involves a mix of advertising, sales promotion, and public relations. Which of the following is a key benefit of using public relations in a marketing strategy?
A. Increased brand awareness
B. Improved customer loyalty
C. Enhanced reputation
D. Increased sales revenue
Question 9
A company's sole trader has a warehouse with a capacity of 1000 units. The company's inventory management system uses a last-in-first-out (LIFO) method. If the company receives a new shipment of 500 units, what is the probability that the oldest unit in the warehouse will be sold before the new shipment is sold?
A. 0.25
B. 0.5
C. 0.75
D. 0.33
Question 10
A bank's return on equity (ROE) is calculated as net income divided by total equity. If a bank has a net income of ₦100,000 and total equity of ₦500,000, what is its ROE?
A. 0.20
B. 0.30
C. 0.40
D. 0.50
Question 11
A firm's production function is given by Q = 3L^0.7K^0.3, where Q is the quantity produced, L is labor, and K is capital. If the prices of labor and capital are 15 and 30 respectively, and the firm produces 9 units of the product, what is the total cost of production?
A. ₦675
B. ₦900
C. ₦1125
D. ₦1350
Question 12
A company's marketing strategy involves a mix of advertising, sales promotion, and public relations. Which of the following is a key tool used in public relations?
A. Press release
B. Media kit
C. Speech
D. Brochure
Question 13
A company is considering two different marketing strategies for its new product. Strategy A involves a high upfront cost of ₦10 million but is expected to generate ₦50 million in revenue over the next 5 years. Strategy B involves a lower upfront cost of ₦5 million but is expected to generate ₦30 million in revenue over the next 5 years. Which strategy has a higher net present value (NPV) if the discount rate is 10%?
A. Strategy A
B. Strategy B
C. Both strategies have the same NPV
D. Neither strategy has a positive NPV
Question 14
A company's marketing strategy involves a 30% discount on all products for the first week of a new product launch. If the original price of the product is ₦10,000, what is the discounted price?
A. ₦7,000
B. ₦8,000
C. ₦9,000
D. ₦10,500
Question 15
A warehouse has a storage capacity of 10,000 units. If 8,000 units are already stored, what is the remaining storage capacity?
A. 2,000
B. 5,000
C. 8,000
D. 10,000

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