POST UTME LASU 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's production function is given by the equation Q = 2L + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases its labor input by 20% and its capital input by 15%, what is the new production level?
A. Q = 2.4L + 3.45K
B. Q = 2.2L + 3.15K
C. Q = 2.6L + 3.75K
D. Q = 2.8L + 4.05K
Question 2
A firm's marketing mix strategy involves the 4 Ps: Product, Price, Place, and Promotion. Which of the following is NOT one of the 4 Ps?
A. Product
B. Price
C. Place
D. Profit
Question 3
A company in Lagos engages in a marketing campaign that includes a misleading advertisement. The advertisement is broadcast on television and radio. What is the legal consequence of this action?
A. The company may be fined ₦100,000
B. The company may be ordered to cease broadcasting the advertisement
C. The company may be liable for damages to consumers who relied on the advertisement
D. The company may be exempt from liability if it can prove that the advertisement was not misleading
Question 4
A warehouse manager is responsible for storing and managing inventory for a retail company. Which of the following is the most appropriate inventory control method for the warehouse?
A. First-in, First-out (FIFO)
B. Last-in, First-out (LIFO)
C. Weighted Average Cost (WAC)
D. Economic Order Quantity (EOQ)
Question 5
A company's communication manager is responsible for maintaining relationships with suppliers. The manager has a budget of ₦30,000 for communication expenses. Which of the following communication channels would be most effective for the company?
A. Email
B. Phone
C. Face-to-face meetings
D. Video conferencing
Question 6
A company uses the following data to calculate its weighted average cost of capital (WACC):
A. Debt: 60%, Equity: 40%
B. Debt: 40%, Equity: 60%
C. Debt: 50%, Equity: 50%
D. Debt: 70%, Equity: 30%
Question 7
A firm is considering two transportation options: Option A, which involves a fixed cost of ₦50,000 and a variable cost of ₦0.50 per unit, and Option B, which involves a fixed cost of ₦30,000 and a variable cost of ₦0.60 per unit. If the firm expects to transport 10,000 units, what is the total cost under Option B compared to Option A?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 8
A firm's insurance policy has a deductible of ₦10,000 and a maximum payout of ₦50,000. If the firm incurs a loss of ₦60,000, how much will it pay in premiums?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 9
A consumer purchases a product from a retailer in Lagos. The product is defective and the consumer seeks redress under the Consumer Protection Law. What is the first step the consumer should take?
A. File a complaint with the Lagos State Consumer Protection Agency
B. Seek compensation from the retailer
C. Return the product to the retailer
D. Contact the manufacturer
Question 10
The Central Bank of Nigeria (CBN) uses the monetary policy instrument of Open Market Operations (OMO) to regulate the money supply in the economy. Which of the following is a characteristic of OMO?
A. It involves the sale of government securities to commercial banks
B. It involves the purchase of government securities from commercial banks
C. It involves the sale of government securities to the public
D. It involves the purchase of government securities from the public
Question 11
A company is considering the introduction of a new insurance product to its customers. Which of the following is the most appropriate type of insurance for the company?
A. Life insurance
B. Health insurance
C. Property insurance
D. Liability insurance
Question 12
A consumer in Lagos purchases a product from an online retailer. The product is delivered late and the consumer seeks compensation under the Consumer Protection Law. What is the legal basis for the consumer's claim?
A. The Consumer Protection Law requires retailers to deliver products within a reasonable time
B. The Consumer Protection Law requires retailers to provide a refund if a product is not delivered on time
C. The Consumer Protection Law requires retailers to compensate consumers for any losses incurred due to late delivery
D. The Consumer Protection Law does not provide any protection for consumers who purchase products online
Question 13
A warehouse manager is responsible for storing goods worth ₦10 million. The manager has a budget of ₦50,000 for insurance premiums. Which of the following insurance policies would provide the best coverage for the goods?
A. All-risk insurance
B. Comprehensive insurance
C. Public liability insurance
D. Product liability insurance
Question 14
A company's sole trader is considering expanding its business by forming a partnership with another business owner. However, the sole trader is concerned about the potential risks involved in sharing profits and losses with a new partner. Which of the following risk management strategies would be most appropriate for the sole trader to consider?
A. Diversification
B. Hedging
C. Risk avoidance
D. Risk transfer
Question 15
A bank is considering the use of a new financial instrument to manage risk. Which of the following is a characteristic of a derivatives contract?
A. Involves the exchange of cash flows between two parties
B. Involves the exchange of physical goods between two parties
C. Involves the exchange of financial instruments between two parties
D. Involves the exchange of services between two parties

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