POST UTME KSU 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering two transportation options for its goods: Option A, which costs ₦1,500 per unit and has a 10% chance of being delayed, and Option B, which costs ₦1,200 per unit and has a 5% chance of being delayed. What is the expected cost per unit for Option A?
A. ₦1,650
B. ₦1,550
C. ₦1,450
D. ₦1,350
Question 2
A company is considering exporting its products to a foreign market. However, they are concerned about the potential risks and challenges associated with international trade. What type of trade agreement would be most beneficial for this scenario?
A. Free Trade Agreement
B. Protectionist Trade Policy
C. Tariff Agreement
D. Non-Tariff Barrier Agreement
Question 3
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). What is the legal implication of this?
A. The business is not liable for any debts incurred
B. The business is not entitled to any tax relief
C. The business is not required to file annual returns
D. The business is not entitled to any government contracts
Question 4
A sole trader has a warehouse with a capacity of 10,000 units. If the company sells 8,000 units in a quarter, what is the percentage decrease in storage capacity needed to meet the demand for the next quarter?
A. 20%
B. 25%
C. 30%
D. 35%
Question 5
A company is considering entering into a joint venture with a foreign partner. What are the key benefits and risks associated with this decision?
A. Benefits: access to new markets, sharing of risks and costs; Risks: loss of control, potential cultural differences.
B. Benefits: improved efficiency, enhanced reputation; Risks: increased costs, potential loss of autonomy.
C. Benefits: increased flexibility, improved work-life balance; Risks: decreased productivity, reduced competitiveness.
D. Benefits: improved customer service, enhanced innovation; Risks: increased costs, potential loss of control.
Question 6
A sole trader is considering expanding its business by hiring additional staff. What are the key advantages and disadvantages of this decision?
A. Advantages: increased productivity, reduced workload; Disadvantages: increased costs, potential loss of control.
B. Advantages: increased flexibility, improved work-life balance; Disadvantages: decreased productivity, reduced competitiveness.
C. Advantages: improved customer service, enhanced reputation; Disadvantages: increased costs, potential loss of autonomy.
D. Advantages: increased efficiency, reduced waste; Disadvantages: decreased flexibility, reduced innovation.
Question 7
A company is considering exporting its products to a foreign market. What is the primary advantage of exporting?
A. Increased competition
B. Reduced market share
C. Access to new markets
D. Lower production costs
Question 8
A company has a warehouse with a capacity of 10,000 units. The company's inventory management system uses a just-in-time (JIT) method. If the company receives 4,000 units of a product and already has 6,000 units in stock, what is the new inventory level?
A. 10,000
B. 6,000
C. 4,000
D. 2,000
Question 9
The concept of specialization in production is closely related to the idea of comparative advantage. Explain how a country can benefit from specializing in the production of a particular good, even if it is not the most efficient producer of that good.
A. By exporting the good and importing other goods that it is more efficient at producing.
B. By investing in research and development to improve its production efficiency.
C. By implementing protectionist trade policies to limit imports.
D. By increasing its domestic consumption of the good.
Question 10
A company's sole trader has a warehouse with a capacity of 10,000 units. If the company sells 8,000 units in a quarter, what is the percentage increase in storage capacity needed to meet the demand for the next quarter?
A. 20%
B. 25%
C. 30%
D. 35%
Question 11
A company's marketing strategy involves creating a sense of urgency among its customers. This is an example of which of the following marketing tactics?
A. Scarcity
B. Exclusivity
C. Social Proof
D. Sense of Urgency
Question 12
A consumer purchases a product with a price of ₦5,000 and a 10% discount. If the consumer pays ₦4,500, what is the amount of the discount?
A. ₦500
B. ₦450
C. ₦400
D. ₦350
Question 13
A consumer protection law requires that all goods sold in a market must be accompanied by a warranty. Which of the following is a type of warranty?
A. Express warranty
B. Implied warranty
C. Service warranty
D. Extended warranty
Question 14
A business is considering outsourcing its logistics operations to a third-party provider. Discuss the advantages and disadvantages of this decision.
A. Advantages: cost savings, increased efficiency, and access to specialized expertise. Disadvantages: loss of control, potential security risks, and dependence on the third-party provider.
B. Advantages: increased control, improved security, and reduced dependence on the third-party provider. Disadvantages: higher costs, decreased efficiency, and limited access to specialized expertise.
C. Advantages: cost savings, increased efficiency, and access to specialized expertise. Disadvantages: loss of control, potential security risks, and dependence on the third-party provider.
D. Advantages: increased control, improved security, and reduced dependence on the third-party provider. Disadvantages: higher costs, decreased efficiency, and limited access to specialized expertise.
Question 15
A company has a bank account with a balance of ₦100,000. If the company deposits ₦20,000 and withdraws ₦15,000, what is the new balance?
A. ₦105,000
B. ₦110,000
C. ₦115,000
D. ₦120,000

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