POST UTME AAUA 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering the use of a new marketing channel. The company has a limited budget and wants to reach a large number of customers. Which of the following marketing channels is most appropriate?
A. Social media
B. Email marketing
C. Television advertising
D. Print advertising
Question 2
A consumer is considering purchasing a product with a price of ₦1,500. The consumer has a budget of ₦2,000. What is the consumer's willingness to pay?
A. ₦1,000
B. ₦1,200
C. ₦1,500
D. ₦2,000
Question 3
A consumer is considering purchasing a product that has a price of ₦1,000. The consumer has a budget of ₦2,000 and is willing to spend up to 50% of their budget on the product. Calculate the maximum amount the consumer is willing to pay for the product.
A. ₦1,000
B. ₦1,000
C. ₦1,000
D. ₦1,000
Question 4
A firm's decision to outsource its logistics to a third-party logistics provider is an example of which type of risk management strategy?
A. Hedging
B. Diversification
C. Outsourcing
D. Vertical integration
Question 5
A company is considering two different marketing strategies: a push strategy and a pull strategy. Explain the key differences between these two strategies and provide an example of each.
A. A push strategy involves promoting a product to intermediaries, such as wholesalers and retailers, who then sell the product to consumers. A pull strategy involves promoting a product directly to consumers, who then demand the product from intermediaries.
B. A push strategy involves promoting a product directly to consumers, who then demand the product from intermediaries. A pull strategy involves promoting a product to intermediaries, such as wholesalers and retailers, who then sell the product to consumers.
C. A push strategy has no impact on the marketing mix.
D. A pull strategy involves promoting a product to both intermediaries and consumers.
Question 6
A company has a capital structure consisting of 60% debt and 40% equity. If the cost of debt is 8% and the cost of equity is 12%, what is the weighted average cost of capital (WACC)?
A. 9.6%
B. 10.4%
C. 11.2%
D. 12.0%
Question 7
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is 20, what is the firm's current quantity demanded?
A. 60
B. 80
C. 100
D. 120
Question 8
A firm is considering two different modes of communication: email and phone. The cost of sending an email is ₦5 per unit, while the cost of making a phone call is ₦10 per unit. If the firm expects to send 100 emails and make 50 phone calls, what is the total cost of communication?
A. ₦500
B. ₦1,000
C. ₦1,500
D. ₦2,000
Question 9
A consumer has a budget constraint of 100 and a preference for two goods, A and B. The prices of A and B are 10 and 20 respectively. If the consumer's indifference curve is tangent to the budget line, what is the consumer's optimal consumption bundle?
A. A = 5, B = 2.5
B. A = 2.5, B = 5
C. A = 10, B = 0
D. A = 0, B = 10
Question 10
A firm's cost of capital is 12%. If it invests ₦1,000,000 at this rate, what will be its expected return?
A. ₦120,000
B. ₦180,000
C. ₦240,000
D. ₦300,000
Question 11
A company has a cash balance of ₦100,000 and a bank overdraft of ₦50,000. What is the company's net cash position?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 12
A consumer is considering purchasing a product that has a price of ₦1,500. The consumer has a budget of ₦2,000 and is willing to spend up to 75% of their budget on the product. Calculate the maximum amount the consumer is willing to pay for the product.
A. ₦1,500
B. ₦1,500
C. ₦1,500
D. ₦1,500
Question 13
A firm is considering exporting its product to a foreign country. The firm has conducted market research and has determined that the product will be in high demand in the foreign country. However, the firm is concerned about the risks associated with exporting the product, including the risk of non-payment by the foreign buyer. What should the firm do to mitigate these risks?
A. Use a letter of credit to secure payment from the foreign buyer
B. Use a bank guarantee to secure payment from the foreign buyer
C. Do not use any risk mitigation measures and rely on the foreign buyer to pay
D. Use a combination of letter of credit and bank guarantee to secure payment
Question 14
The concept of 'Gross Domestic Product' (GDP) is a measure of the total value of all final goods and services produced within a country's borders over a specific time period. Which of the following is NOT a component of GDP?
A. Imports
B. Exports
C. Government Consumption
D. Investment
Question 15
The concept of 'Supply and Demand' is a fundamental principle of economics. Which of the following is a characteristic of a demand curve?
A. It slopes upward to the right
B. It slopes downward to the left
C. It is a vertical line
D. It is a horizontal line

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