POST UTME FUTA 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's warehouse is used for storing raw materials, work-in-progress, and finished goods. What is the primary purpose of a warehouse?
A. To facilitate the movement of goods
B. To store raw materials, work-in-progress, and finished goods
C. To manage inventory levels
D. To control the quality of goods
Question 2
A consumer's indifference curve is given by U = 2x + 3y. If the consumer's income is 100 and the prices of x and y are 5 and 10 respectively, what is the consumer's optimal bundle?
A. x = 10, y = 5
B. x = 15, y = 3
C. x = 20, y = 2
D. x = 25, y = 1
Question 3
The _______ of a product refers to the process of creating a new product or service that meets the needs of a target market.
A. development
B. production
C. marketing
D. distribution
Question 4
A bank's primary function is to act as a financial intermediary between savers and borrowers. This is an example of
A. Deposit-taking
B. Loan-making
C. Investment
D. All of the above
Question 5
A firm's foreign trade involves the importation and exportation of goods. What is the primary advantage of foreign trade?
A. To increase domestic production
B. To reduce domestic unemployment
C. To increase domestic consumption
D. To increase domestic competition
Question 6
A _______ is a contract between a buyer and a seller where the buyer agrees to buy a product or service at a fixed price.
A. purchase order
B. sales order
C. invoice
D. proforma invoice
Question 7
A company's marketing strategy involves creating a new product line. Which of the following is a key benefit of product differentiation?
A. Increased market share
B. Improved brand recognition
C. Reduced competition
D. Increased customer loyalty
Question 8
A company is considering the introduction of a new production process that will increase efficiency but also increase the risk of product defects. Which of the following production methods is most likely to be used in this scenario?
A. Mass Production
B. Batch Production
C. Job Production
D. Flexible Manufacturing System
Question 9
A company has a warehouse with a capacity of 10,000 units. The company currently has 8,000 units of item A and 2,000 units of item B. If the company receives an order for 5,000 units of item A, what is the probability that the warehouse will be able to fulfill the order?
A. 0.8
B. 0.9
C. 1.0
D. 0.6
Question 10
A company's production process involves the transformation of raw materials into finished goods. This is an example of
A. Production
B. Manufacturing
C. Service delivery
D. Marketing
Question 11
The concept of comparative advantage in international trade suggests that a country should specialize in producing goods for which it has a lower opportunity cost compared to another country. What is the opportunity cost of a country that specializes in producing a good for which it has a comparative advantage?
A. The opportunity cost is the value of the next best alternative good that could have been produced.
B. The opportunity cost is the value of the next best alternative good that could have been produced, but not consumed.
C. The opportunity cost is the value of the next best alternative good that could have been produced, but not consumed, and not traded.
D. The opportunity cost is the value of the next best alternative good that could have been produced, but not consumed, and not traded, and not imported.
Question 12
A company's marketing strategy involves creating a brand identity that is unique and memorable. This is an example of
A. Market Segmentation
B. Market Research
C. Market Analysis
D. Brand Positioning
Question 13
A warehouse is using a first-in-first-out (FIFO) inventory system. If the warehouse has 100 units of item A and 50 units of item B, and the items are stored in a single bin, what is the probability that the next item removed from the bin will be item A?
A. 0.5
B. 0.6
C. 0.7
D. 0.8
Question 14
A company's financial statements are audited by
A. The company's management
B. The company's board of directors
C. An independent auditor
D. The company's shareholders
Question 15
A firm's demand function is given by Q = 100 - 2P. If the firm's marginal revenue is 50, what is the firm's price?
A. 20
B. 30
C. 40
D. 50

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