POST UTME LASU 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering investing in a new project. The project has a high potential return on investment, but it also carries a high level of risk. What is the most appropriate investment strategy for this project?
A. Diversification
B. Hedging
C. Speculation
D. Risk avoidance
Question 2
A company produces two products: A and B. Product A requires 2 hours of labor and 3 hours of machine time, while product B requires 3 hours of labor and 2 hours of machine time. If the company has 120 hours of labor and 180 hours of machine time available, how many units of product A and product B should the company produce to maximize profit?
A. 10 units of A and 15 units of B
B. 15 units of A and 10 units of B
C. 20 units of A and 5 units of B
D. 5 units of A and 20 units of B
Question 3
A sole trader's business is registered as a sole proprietorship. What is the primary advantage of this business structure?
A. Limited liability
B. Unlimited liability
C. Easy to set up
D. No tax benefits
Question 4
A firm's revenue is given by the equation ( R = 100x - 2x^2 ). If the firm produces 10 units, what is the marginal revenue?
A. ₦80
B. ₦90
C. ₦100
D. ₦110
Question 5
A company has a 10% chance of experiencing a loss of 100,000, a 20% chance of experiencing a loss of 50,000, and a 70% chance of experiencing no loss. What is the expected value of the company's losses?
A. 10,000
B. 20,000
C. 30,000
D. 40,000
Question 6
A company's insurance policy covers losses due to natural disasters. Which of the following is a type of insurance policy?
A. Liability insurance
B. Property insurance
C. Casualty insurance
D. Workers' compensation insurance
Question 7
A firm is considering the introduction of a new product. The product's production cost is ₦500 per unit, and the selling price is ₦750 per unit. If the firm wants to make a profit of ₦100 per unit, what is the minimum number of units that should be produced?
A. 100
B. 200
C. 300
D. 400
Question 8
A firm's marginal cost is given by the equation ( MC = 2 + 3x ). If the firm produces 5 units, what is the total cost?
A. ₦25
B. ₦30
C. ₦35
D. ₦40
Question 9
A firm is considering investing in a new warehouse. Which of the following is a key factor to consider when evaluating the feasibility of the investment?
A. Initial investment cost
B. Expected return on investment
C. Warehouse location
D. Market demand
Question 10
A bank offers a credit card with a 20% interest rate and a 2% annual fee. The credit card has a credit limit of ₦100,000. What is the minimum amount that the consumer must pay each month to avoid incurring interest charges?
A. ₦2,000
B. ₦2,500
C. ₦3,000
D. ₦3,500
Question 11
A company is considering expanding its operations to a new market. Which of the following is a key factor to consider when evaluating the feasibility of the expansion?
A. Market size and growth rate
B. Competitor analysis
C. Regulatory environment
D. Supply chain management
Question 12
A company's articles of association state that the company's shares are to be divided into two classes: ordinary and preference. What is the primary difference between these two classes of shares?
A. Ordinary shares have voting rights, while preference shares do not.
B. Preference shares have voting rights, while ordinary shares do not.
C. Ordinary shares have a higher dividend rate than preference shares.
D. Preference shares have a higher dividend rate than ordinary shares.
Question 13
A company is considering exporting its products to a foreign market. Which of the following is a major advantage of exporting?
A. Increased revenue
B. Reduced competition
C. Improved brand image
D. Enhanced market research
Question 14
A company is considering exporting its products to a foreign market. What is the first step the company should take?
A. Conduct market research to identify potential customers
B. Develop a marketing strategy to promote the products
C. Establish a distribution network to deliver the products
D. Negotiate with a foreign partner to import the products
Question 15
In a market with perfect competition, the demand curve is downward sloping and the supply curve is upward sloping. What is the equilibrium price and quantity of the product?
A. (P = 10, Q = 100)
B. (P = 20, Q = 50)
C. (P = 30, Q = 200)
D. (P = 40, Q = 150)

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