POST UTME ACHIEVERS UNIVERSITY 2020 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 are the benefits of exporting?
A. Increased revenue, improved competitiveness
B. Reduced costs, improved market share
C. Improved brand recognition, increased customer loyalty
D. Reduced risk, improved cash flow
Question 2
A life insurance policy has a premium of ₦50,000 per annum. If the policyholder pays the premium for 5 years, what is the total premium paid?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 3
The diagram below shows the demand and supply curves for a perfectly competitive market. What is the equilibrium price?
A. ₦10
B. ₦20
C. ₦30
D. ₦40
Question 4
A company has purchased a liability insurance policy to protect against potential lawsuits. The policy has a deductible of ₦100,000 and a policy limit of ₦500,000. If the company is sued for ₦750,000, how much will the company have to pay out of pocket?
A. ₦250,000
B. ₦350,000
C. ₦450,000
D. ₦550,000
Question 5
A company is considering exporting its products to a foreign market. The company has identified several potential trade barriers, including tariffs, quotas, and non-tariff barriers. Which of the following trade agreements would be most effective in reducing these barriers?
A. World Trade Organization (WTO)
B. General Agreement on Tariffs and Trade (GATT)
C. North American Free Trade Agreement (NAFTA)
D. Association of Southeast Asian Nations (ASEAN)
Question 6
A company is considering setting up a joint venture with a foreign partner. What are the potential benefits of this decision?
A. Access to new markets, technology, and expertise
B. Increased competition, reduced profits, and poor risk management
C. No benefits, high costs, and poor risk management
D. No benefits, low costs, and good risk management
Question 7
Under the Consumer Protection Act of 1999, what is the primary responsibility of a consumer in a contract?
A. To ensure the product meets the manufacturer's specifications
B. To inspect the product before purchase
C. To report any defects or issues to the manufacturer
D. To negotiate the price of the product
Question 8
A company is considering launching a new product line. The marketing manager has identified three potential target markets: young adults, middle-aged adults, and seniors. The product development team has estimated the production costs and potential revenue for each target market. Which of the following marketing strategies would be most effective for the company?
A. Segmentation, targeting, and positioning (STP)
B. Market penetration, market development, and market diversification (3Cs)
C. Product differentiation and market expansion
D. Brand extension and market segmentation
Question 9
A company's marketing strategy involves creating a brand identity through advertising and packaging. Which of the following is a characteristic of a brand identity?
A. It is a product-based strategy
B. It is a price-based strategy
C. It is a service-based strategy
D. It is a unique combination of products, services, and experiences
Question 10
A consumer purchases a product with a price of ₦5,000 and pays a 5% sales tax. What is the amount of sales tax paid?
A. ₦200
B. ₦250
C. ₦300
D. ₦350
Question 11
In a perfectly competitive market, the supply curve is upward-sloping because
A. Firms are willing to supply more of a good as its price increases.
B. Firms are willing to supply less of a good as its price increases.
C. Firms are willing to supply more of a good as its price decreases.
D. Firms are willing to supply less of a good as its price decreases.
Question 12
A company's insurance policy covers losses due to fire, theft, and natural disasters. Which of the following is a type of insurance policy?
A. Fire insurance
B. Theft insurance
C. Natural disaster insurance
D. All-risk insurance
Question 13
A consumer has filed a complaint with the Better Business Bureau against a company for violating the Federal Trade Commission's (FTC) guidelines on advertising. The company has advertised a product as 'all-natural' when, in fact, it contains artificial ingredients. Which of the following is the primary purpose of the FTC's guidelines on advertising?
A. To protect consumers from false or misleading advertising.
B. To promote fair competition among businesses.
C. To regulate the content of advertisements.
D. To ensure that companies comply with industry standards.
Question 14
A bank's interest rate is 12% per annum. If a customer deposits ₦10,000 for 2 years, what is the interest earned?
A. ₦2,400
B. ₦2,400
C. ₦2,400
D. ₦2,400
Question 15
A consumer protection agency has received complaints about a company's unfair business practices. The agency has gathered evidence of the company's actions and is considering taking legal action. Which of the following legal principles would be most relevant to this case?
A. Unfair competition
B. Deceptive advertising
C. Breach of contract
D. Negligence

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