POST UTME ESUT 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A business is considering implementing a new production process. What is the primary benefit of this process?
A. Increased efficiency
B. Improved product quality
C. Reduced production costs
D. Enhanced supply chain visibility
Question 2
A firm is considering two different modes of payment: cash and credit. The cost of cash payment is ₦50,000, while the cost of credit payment is ₦30,000. If the firm needs to make a payment of ₦100,000, what is the total cost of credit payment?
A. ₦80,000
B. ₦70,000
C. ₦60,000
D. ₦50,000
Question 3
A company is considering two different production processes for its product. Process A has a higher fixed cost but a lower variable cost, while Process B has a lower fixed cost but a higher variable cost. Which process should the company choose if it expects to produce 10,000 units?
A. Process A
B. Process B
C. It depends on the expected price of the product
D. It depends on the expected demand for the product
Question 4
A company is considering implementing a just-in-time inventory system. What is the primary advantage of this system?
A. Reduced inventory costs
B. Improved customer service
C. Increased efficiency in production
D. Enhanced supply chain visibility
Question 5
A consumer protection agency has been established to regulate the activities of businesses in a particular industry. Which of the following is a key responsibility of this agency?
A. To ensure that businesses comply with all relevant laws and regulations
B. To protect consumers from unfair business practices
C. To promote fair competition among businesses
D. To provide training and education to consumers on how to make informed purchasing decisions
Question 6
In the context of consumer protection, what is the primary purpose of the Consumer Protection Act?
A. To regulate business practices
B. To protect consumers from unfair trade practices
C. To promote consumer education
D. To establish consumer courts
Question 7
A company has a risk management strategy that involves diversifying its investments. What is the main advantage of diversification?
A. Reduced risk
B. Increased profit
C. Improved product quality
D. Increased flexibility
Question 8
A firm is considering two different modes of transportation to ship its goods: by air and by sea. The cost of shipping by air is ₦50,000 per ton, while the cost of shipping by sea is ₦30,000 per ton. If the firm needs to ship 10 tons of goods, what is the total cost of shipping by air?
A. ₦500,000
B. ₦300,000
C. ₦400,000
D. ₦600,000
Question 9
A consumer in Nigeria purchases a product online from a foreign company. The product is subject to customs duties and other taxes. What is the term for the total amount of customs duties and taxes paid on the imported product?
A. Tariff
B. Duty
C. Tax
D. Customs Value
Question 10
A consumer protection agency has received a complaint about a company that is selling a product with a misleading label. The label claims that the product is '100% natural' when in fact it contains artificial ingredients. What is the legal consequence for the company if it is found guilty of this offense?
A. The company will be fined ₦1 million
B. The company will be required to recall the product
C. The company will be banned from selling the product for 6 months
D. The company will be required to pay damages to the consumers
Question 11
A consumer has a budget of ₦10,000 and is considering two different products: Product A costs ₦5,000 and Product B costs ₦8,000. If the consumer buys Product A, they will have ₦5,000 left over. If they buy Product B, they will have ₦2,000 left over. What is the opportunity cost of buying Product B?
A. ₦2,000
B. ₦5,000
C. ₦8,000
D. ₦10,000
Question 12
The Consumer Protection Act of 1999 provides protection to consumers in Nigeria. Which of the following is a fundamental right of a consumer under this Act?
A. The right to be informed about the product or service
B. The right to choose between different products or services
C. The right to be protected against unfair or deceptive business practices
D. The right to be compensated for any loss or damage suffered
Question 13
A company has a production process that involves mixing two chemicals together. The company wants to minimize the cost of production while ensuring that the product meets the required quality standards. What is the most appropriate production method?
A. Batch production
B. Mass production
C. Continuous production
D. Flexible production
Question 14
A company's warehouse is designed to store a large quantity of goods. If the company uses a first-in-first-out (FIFO) inventory system, which of the following is true?
A. The oldest items are sold first
B. The newest items are sold first
C. The items are sold in the order they are received
D. The items are sold randomly
Question 15
A sole trader is considering expanding their business by hiring employees. What is the main advantage of hiring employees?
A. Increased profit
B. Reduced workload
C. Improved product quality
D. Increased flexibility

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