POST UTME DELSU 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's marketing mix is a combination of the four Ps: product, price, promotion, and
A. place
B. people
C. process
D. physical distribution
Question 2
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied of that commodity will
A. increase
B. decrease
C. remain constant
D. become zero
Question 3
A firm's warehouse is designed to store goods worth ₦500 million. If the firm uses a 10% markup on the cost price to determine the selling price, and the cost price is ₦450 million, what is the total revenue generated from the sale of these goods?
A. ₦495 million
B. ₦500 million
C. ₦505 million
D. ₦510 million
Question 4
A production function is a mathematical representation of the relationship between inputs and outputs in a production process. What is the main purpose of a production function?
A. To determine the optimal input mix
B. To calculate the total product
C. To measure the marginal product
D. To evaluate the efficiency of production
Question 5
A company is considering launching a new product in a foreign market. Which of the following is a key consideration in the decision-making process?
A. The company's existing brand reputation in the foreign market.
B. The level of competition in the foreign market.
C. The company's ability to adapt to local market conditions.
D. The company's financial resources and budget for the launch.
Question 6
A company uses a warehouse management system to track its inventory levels. The system uses a first-in, first-out (FIFO) inventory management method. However, due to a sudden increase in demand, the company is facing a shortage of a particular product. What is the most appropriate course of action for the company to take?
A. Increase production by hiring more staff and purchasing more equipment
B. Reduce production by decreasing the number of products offered
C. Implement a new inventory management system to better track raw materials
D. Use a just-in-time inventory system to manage raw materials
Question 7
A sole trader, Mr. Johnson, owns and operates a small business selling electrical appliances. He has a warehouse where he stores his inventory. One day, a fire breaks out in the warehouse, causing significant damage to the building and destroying a large portion of his inventory. What type of insurance policy would Mr. Johnson likely have to cover this loss?
A. Public Liability Insurance
B. Business Interruption Insurance
C. Stock Insurance
D. Professional Indemnity Insurance
Question 8
A company is a type of business ownership where there are multiple owners who share the profits and losses. What is the main disadvantage of being a company?
A. Limited liability
B. Unlimited liability
C. Complexity in decision-making
D. Higher tax rates
Question 9
A company has the following inventory levels: 100 units of product A, 200 units of product B, and 300 units of product C. If the company uses the First-In-First-Out (FIFO) method of inventory valuation, what is the total value of the inventory?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 10
A company is considering expanding its operations to a new location. The company has identified two potential locations: Location A and Location B. Location A has a larger market size but is farther away from the company's current location. Location B has a smaller market size but is closer to the company's current location. What is the most appropriate decision for the company to make?
A. Choose Location A due to its larger market size
B. Choose Location B due to its proximity to the company's current location
C. Conduct further market research to determine which location is more suitable
D. Choose neither location and explore other options
Question 11
A company's risk management strategy involves diversification of its investments across various sectors. If the company invests ₦100 million in stocks, ₦50 million in bonds, and ₦20 million in real estate, what is the total value of its investment portfolio?
A. ₦170 million
B. ₦180 million
C. ₦190 million
D. ₦200 million
Question 12
A company specializes in producing and selling a unique brand of chocolates. The production process involves mixing cocoa beans with sugar, milk, and other ingredients. The company uses a just-in-time inventory system to manage its raw materials. However, due to a sudden increase in demand, the company is facing a shortage of cocoa beans. What is the most appropriate course of action for the company to take?
A. Increase production by hiring more staff and purchasing more equipment
B. Reduce production by decreasing the number of products offered
C. Implement a new inventory management system to better track raw materials
D. Outsource the production of cocoa beans to a third-party supplier
Question 13
A sole trader is a type of business ownership where one person owns and operates the business, and is responsible for all its
A. assets
B. liabilities
C. profits
D. all of the above
Question 14
A consumer protection agency receives a complaint from a customer who purchased a defective product worth ₦50,000. If the agency awards a compensation of ₦75,000, what is the total amount the agency will pay to the customer?
A. ₦125,000
B. ₦125,500
C. ₦126,000
D. ₦126,500
Question 15
A company has the following transportation costs: 100 for the first 100 units, 50 for the next 200 units, and 25 for the next 300 units. If the company ships 600 units, what is the total transportation cost?
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000

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