POST UTME LASU 2018 Commerce | Objective

Are you preparing for POST UTME LASU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
The Lagos State Consumer Protection Agency has the power to investigate complaints about unfair business practices under the Lagos State Consumer Protection Law 2015. Which of the following is a valid ground for investigation?
A. Unfair contract terms
B. Misleading advertising
Correct C. Unfair trade practices
D. Unfair competition

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A company is considering exporting its products to the European Union. What is the primary advantage of using the Incoterms 2020 rules in international trade?
A. Reduced transportation costs
B. Simplified customs procedures
Correct C. Clearer allocation of risks
D. Increased market access

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A sole trader has a business that sells goods online. What is the primary advantage of using a sole trader structure for this business?
A. Easy to set up and maintain
B. Low start-up costs
Correct C. Flexibility in decision-making
D. Limited liability

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company is considering using a logistics provider to transport its goods. What is the primary advantage of using a third-party logistics provider?
A. Reduced transportation costs
B. Increased flexibility in transportation options
C. Improved delivery times
Correct D. Reduced liability for damage or loss

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company is considering using a digital marketing strategy to promote its products. What is the primary advantage of using social media advertising?
A. Increased brand awareness
B. Improved customer engagement
Correct C. Targeted advertising
D. Reduced marketing costs

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
In a sole trade business, the owner's personal assets are not protected from business liabilities. What is the primary reason for this?
A. Lack of separate business bank account
B. Insufficient business insurance coverage
Correct C. Personal guarantee of business loans
D. Inadequate business registration

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A company's Memorandum of Association (MOA) outlines its
A. Objectives and goals
B. Share capital and ownership structure
C. Business operations and management
Correct D. All of the above

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A consumer protection law requires businesses to provide
A. Clear and concise product information
B. Detailed product warranty and guarantee
C. Proof of product quality and safety
Correct D. All of the above

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A company's Board of Directors is responsible for
A. Strategic planning and decision-making
B. Day-to-day business operations and management
C. Financial management and accounting
Correct D. All of the above

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A sole trader's business is not required to file annual accounts with the
Correct A. Companies Registration and Licensing Agency (CRA)
B. Federal Inland Revenue Service (FIRS)
C. National Industrial Court of Nigeria (NICN)
D. Corporate Affairs Commission (CAC)

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A company's marketing strategy involves a mix of advertising, sales promotion, and public relations. Which of the following is NOT a characteristic of a successful marketing strategy?
A. It is focused on the target market
B. It is flexible and adaptable
Correct C. It is based on the company's product features
D. It is focused on the company's profit maximization

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A sole trader's business is registered under the sole trader's name. What is the main advantage of this type of business registration?
Correct A. It is easy to set up
B. It is cheap to maintain
C. It provides limited liability protection
D. It allows for easy transfer of ownership

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A company's financial statements include the balance sheet, income statement, and cash flow statement. Which of the following is NOT a component of the balance sheet?
A. Assets
B. Liabilities
C. Equity
Correct D. Revenue

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A foreign trade agreement involves the exchange of goods and services between two or more countries. What is the main purpose of a foreign trade agreement?
A. To promote economic growth
Correct B. To reduce trade barriers
C. To increase competition
D. To protect domestic industries

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A bank's primary function is to act as a financial intermediary between savers and borrowers. What is the main advantage of using a bank?
A. It provides a safe place to store money
B. It offers a wide range of financial services
Correct C. It provides a low-cost way to borrow money
D. It offers a high return on investment

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A company's marketing strategy involves a mix of advertising and public relations. Which of the following best describes the primary goal of this strategy?
A. To increase brand awareness
B. To generate leads
C. To build customer loyalty
Correct D. To create a positive brand image

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A firm's supply chain involves the transportation of goods from the factory to the warehouse. Which of the following is the most appropriate mode of transportation?
Correct A. Truck
B. Train
C. Ship
D. Airplane

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A company's insurance policy covers losses due to fire, theft, and natural disasters. Which of the following is the primary purpose of this policy?
A. To reduce the risk of losses
B. To increase the company's assets
Correct C. To provide financial protection
D. To improve the company's reputation

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A firm's marketing mix involves the use of social media to promote its products. Which of the following is the primary benefit of this strategy?
A. Increased brand awareness
Correct B. Improved customer engagement
C. Enhanced customer loyalty
D. Increased sales

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company's supply chain involves the transportation of goods from the factory to the warehouse. Which of the following is the most appropriate mode of transportation?
Correct A. Truck
B. Train
C. Ship
D. Airplane

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A firm specializes in producing a particular product. The production process involves the use of a machine that can be rented or purchased. If the firm rents the machine, it pays ₦150,000 per month. If it purchases the machine, it pays ₦2,000,000 upfront. The firm's production costs are ₦500,000 per month. If the firm's revenue is ₦1,000,000 per month, what is the minimum number of months it must operate to break even?
A. 6 months
Correct B. 12 months
C. 18 months
D. 24 months

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A company has two warehouses, A and B. Warehouse A has a capacity of 10,000 units, and Warehouse B has a capacity of 5,000 units. The company receives an order for 8,000 units. If it wants to fulfill the order using the least amount of transportation, how many units should it store in Warehouse A?
Correct A. 4,000 units
B. 5,000 units
C. 6,000 units
D. 8,000 units

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A consumer purchases a product for ₦10,000. The product has a warranty period of 2 years. If the consumer wants to purchase an extended warranty that covers the product for an additional 2 years, how much will it cost?
A. ₦2,000
Correct B. ₦4,000
C. ₦6,000
D. ₦8,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A firm has a production cost of ₦500,000 per month. If it sells its product for ₦1,000,000 per month, what is its profit margin?
A. 50%
Correct B. 60%
C. 70%
D. 80%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A company has a warehouse with a capacity of 10,000 units. If it receives an order for 8,000 units, what is the maximum number of units it can store in the warehouse?
A. 8,000 units
B. 9,000 units
Correct C. 10,000 units
D. 11,000 units

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support