POST UTME LAUTECH 2019 Commerce | Objective

Are you preparing for POST UTME LAUTECH exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
In a perfectly competitive market, the demand curve for a firm's product is its
Correct A. marginal revenue curve
B. marginal cost curve
C. average revenue curve
D. average cost curve

Correct Answer: A

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Question 2
A company's marketing strategy involves creating a new product line that targets a specific demographic. This approach is an example of
A. market segmentation
B. product differentiation
Correct C. target marketing
D. positioning

Correct Answer: C

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Question 3
The diagram below shows a supply and demand curve for a product. If the price of the product increases, what will happen to the quantity supplied?
A. Increase
Correct B. Decrease
C. Remain the same
D. No effect

Correct Answer: B

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Question 4
A sole trader is a type of business ownership where one person owns and operates the business. What are the advantages of being a sole trader?
A. Easy to set up and manage
B. High level of control and decision-making
C. Limited liability
Correct D. All of the above

Correct Answer: D

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Question 5
A company's foreign trade involves importing goods from another country. What is the term for this type of trade?
A. Export
Correct B. Import
C. Trade deficit
D. Trade surplus

Correct Answer: B

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Question 6
A firm's decision to export goods to a foreign market is influenced by several factors. Which of the following is NOT a factor that affects a firm's decision to export?
A. Government policies and regulations
B. Market demand and competition
C. Transportation costs and logistics
Correct D. Language and cultural differences

Correct Answer: D

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Question 7
A bank's primary function is to act as a financial intermediary between savers and borrowers. Which of the following is a type of financial intermediary?
Correct A. Commercial bank
B. Investment bank
C. Central bank
D. Merchant bank

Correct Answer: A

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Question 8
A consumer protection law aims to safeguard the interests of consumers by regulating the sale of goods and services. Which of the following is a type of consumer protection law?
A. Consumer credit law
B. Product liability law
C. Consumer safety law
Correct D. Consumer rights law

Correct Answer: D

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Question 9
A firm's decision to adopt a new technology is influenced by several factors. Which of the following is NOT a factor that affects a firm's decision to adopt a new technology?
A. Cost savings
B. Increased productivity
C. Government incentives
Correct D. Language and cultural differences

Correct Answer: D

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Question 10
A firm's decision to invest in a new market is influenced by several factors. Which of the following is a type of market entry strategy?
A. Exporting
B. Licensing
C. Franchising
Correct D. Joint venture

Correct Answer: D

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Question 11
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). What is the legal implication of this?
Correct A. The business is not entitled to limited liability.
B. The business is not required to file annual returns.
C. The business is not eligible for tax deductions.
D. The business is not required to have a business name.

Correct Answer: A

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Question 12
A company's Memorandum and Articles of Association are not registered with the Corporate Affairs Commission (CAC). What is the legal implication of this?
Correct A. The company is not entitled to limited liability.
B. The company is not required to file annual returns.
C. The company is not eligible for tax deductions.
D. The company is not required to have a business name.

Correct Answer: A

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Question 13
A consumer purchases a product from a retailer, but the product is defective. The consumer sues the retailer for breach of contract. What is the retailer's defense?
A. The consumer is estopped from claiming damages.
Correct B. The retailer is not liable for the defect.
C. The consumer failed to provide notice of the defect.
D. The retailer is entitled to a set-off.

Correct Answer: B

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Question 14
A company's directors are sued for breach of fiduciary duty. What is the company's liability?
Correct A. The company is liable for the directors' actions.
B. The company is not liable for the directors' actions.
C. The company is entitled to indemnify the directors.
D. The company is required to pay damages to the plaintiffs.

Correct Answer: A

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Question 15
A consumer purchases a product from a retailer, but the product is not as described. The consumer sues the retailer for misrepresentation. What is the retailer's defense?
A. The consumer is estopped from claiming damages.
Correct B. The retailer is not liable for the misrepresentation.
C. The consumer failed to provide notice of the misrepresentation.
D. The retailer is entitled to a set-off.

Correct Answer: B

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Question 16
A company's sole trader is considering expanding its business by forming a partnership with another business owner. Which of the following is a key advantage of forming a partnership?
Correct A. Increased financial resources
B. Improved management skills
C. Enhanced reputation
D. Reduced tax liability

Correct Answer: A

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Question 17
A firm's marketing strategy involves creating a new product line. Which of the following is a key consideration in the product development process?
A. Target market analysis
B. Competitor analysis
Correct C. Product life cycle analysis
D. Supply chain management

Correct Answer: C

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Question 18
A company's warehouse is experiencing stockouts due to inadequate inventory management. Which of the following is a key principle of effective inventory management?
A. Just-in-time inventory system
Correct B. Economic order quantity (EOQ) model
C. ABC analysis
D. Vendor-managed inventory (VMI)

Correct Answer: B

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Question 19
A firm's marketing mix involves creating a unique selling proposition (USP). Which of the following is a key element of a USP?
Correct A. Product differentiation
B. Price competitiveness
C. Promotional activities
D. Distribution channels

Correct Answer: A

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Question 20
A company's sole trader is considering expanding its business by forming a company. Which of the following is a key advantage of forming a company?
Correct A. Limited liability
B. Increased financial resources
C. Improved management skills
D. Enhanced reputation

Correct Answer: A

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Question 21
In a perfectly competitive market, the supply curve is upward sloping because of the law of increasing opportunity cost. However, in a perfectly competitive market, the law of increasing opportunity cost is not the primary reason for the upward sloping supply curve. What is the primary reason?
Correct A. The law of diminishing marginal returns
B. The law of increasing opportunity cost
C. The law of supply and demand
D. The law of diminishing returns

Correct Answer: A

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Question 22
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current level of labor is 16 units and the current level of capital is 9 units, what is the marginal product of labor?
Correct A. 0.5
B. 1
C. 2
D. 3

Correct Answer: A

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Question 23
A consumer's budget constraint is given by 2x + 3y = 12. If the consumer's current level of x is 3 units, what is the marginal rate of substitution between x and y?
Correct A. -2/3
B. -1/2
C. -1/3
D. -1/4

Correct Answer: A

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Question 24
A firm's cost function is given by C = 2L + 3K. If the firm's current level of labor is 4 units and the current level of capital is 6 units, what is the marginal cost?
Correct A. 2
B. 3
C. 4
D. 5

Correct Answer: A

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Question 25
A consumer's indifference curve is given by the equation u(x, y) = 2x + 3y. If the consumer's current level of x is 2 units, what is the marginal utility of y?
Correct A. 3
B. 4
C. 5
D. 6

Correct Answer: A

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