POST UTME FUTA 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a policy of providing a 10% discount to customers who pay their bills on time. However, a customer has failed to pay their bill on time and is now facing a penalty. What should the company do?
A. Waive the penalty and provide the 10% discount
B. Increase the penalty to 20%
C. Negotiate with the customer to accept a lower penalty
D. Cancel the customer's account and refuse to provide further services
Question 2
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. Personal Consumption Expenditure
B. Government Expenditure
C. Net Exports
D. Value Added Tax
Question 3
A firm's marketing strategy involves identifying its target market and developing a unique selling proposition (USP) to differentiate its products from those of its competitors. What is the primary goal of a USP?
A. To increase market share
B. To reduce production costs
C. To create a unique selling proposition
D. To improve product quality
Question 4
A company is considering two different modes of transportation for its goods: road and rail. Which of the following is a factor that would influence the choice of transportation mode?
A. The distance between the origin and destination
B. The type of goods being transported
C. The cost of transportation
D. All of the above
Question 5
A firm produces two goods, X and Y, using two inputs, labor (L) and capital (K). The production function for good X is given by X = 2L + 3K, and the production function for good Y is given by Y = 4L + 2K. If the firm has 10 units of labor and 5 units of capital, how many units of good X will it produce?
A. 20
B. 30
C. 40
D. 50
Question 6
A company's financial statements show a net income of ₦1,500,000 and a total equity of ₦3,000,000. If the company's debt-to-equity ratio is 0.6, what is the amount of its long-term debt?
A. ₦1,800,000
B. ₦2,400,000
C. ₦1,200,000
D. ₦1,000,000
Question 7
A company has a policy of paying its employees a minimum of ₦50,000 per month. However, the company's financial situation has changed, and it can no longer afford to pay this amount. What should the company do?
A. Reduce the minimum wage to ₦40,000
B. Increase the minimum wage to ₦60,000
C. Negotiate with employees to accept a lower wage
D. Lay off employees to reduce costs
Question 8
A company's marketing mix consists of a product with a high level of quality, a price that is slightly above the average market price, a promotion strategy that focuses on social media advertising, and a distribution channel that involves online sales. What is the primary advantage of this marketing mix?
A. Increased market share
B. Improved brand image
C. Reduced production costs
D. Enhanced customer satisfaction
Question 9
A firm'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 10
A company has a marketing budget of ₦1,000,000. If it allocates 30% of the budget to advertising, 20% to promotions, and 50% to public relations, how much will it spend on public relations?
A. ₦250,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 11
A company exports 80% of its production to foreign countries. If the company's total production is 100,000 units, how many units are exported?
A. 80,000
B. 90,000
C. 100,000
D. 120,000
Question 12
A sole trader's business is affected by the following factors: high competition, low profit margins, and a high level of uncertainty. Which of the following is the most appropriate business strategy for this sole trader?
A. Diversification
B. Concentration
C. Vertical integration
D. Horizontal integration
Question 13
A firm's marketing mix involves identifying its target market and developing a unique selling proposition (USP) to differentiate its products from those of its competitors. What is the primary goal of a USP?
A. To increase market share
B. To reduce production costs
C. To create a unique selling proposition
D. To improve product quality
Question 14
A bank's cash management system involves the use of a cash management software to track and manage its cash flows. Which of the following is a benefit of using a cash management software?
A. Improved cash forecasting
B. Reduced cash handling costs
C. Increased cash availability
D. All of the above
Question 15
A business has a contract with a supplier to purchase goods at a fixed price. However, the supplier has increased the price of the goods. What should the business do?
A. Accept the increased price and continue with the contract
B. Negotiate with the supplier to reduce the price
C. Cancel the contract and find a new supplier
D. Pay the increased price and claim damages from the supplier

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