POST UTME LAUTECH 2023 Commerce | Objective

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Question 1
A bank's liquidity risk is directly related to its ability to meet its short-term obligations. Which of the following is a characteristic of a bank's liquidity risk?
Correct A. The bank's inability to meet its short-term obligations
B. The bank's inability to meet its long-term obligations
C. The bank's inability to meet its loan commitments
D. The bank's inability to meet its deposit withdrawals

Correct Answer: A

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Question 2
A company's production process involves the use of a machine that requires a high level of maintenance. Which of the following is a characteristic of this machine?
A. The machine is highly specialized
B. The machine is highly standardized
Correct C. The machine is highly automated
D. The machine is highly labor-intensive

Correct Answer: C

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Question 3
A consumer protection law requires that all products sold in a particular market must meet certain safety standards. Which of the following is a characteristic of this law?
A. The law requires that all products be certified by a third-party organization
Correct B. The law requires that all products meet certain safety standards
C. The law requires that all products be labeled with warning signs
D. The law requires that all products be sold at a fixed price

Correct Answer: B

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Question 4
A company's financial statements show that it has a high level of debt. Which of the following is a characteristic of this company's financial situation?
A. The company has a high level of liquidity
B. The company has a high level of solvency
Correct C. The company has a high level of debt
D. The company has a high level of profitability

Correct Answer: C

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Question 5
A bank's risk management strategy involves the use of derivatives to hedge against potential losses. Which of the following is a characteristic of this strategy?
A. The bank uses derivatives to speculate on market trends
Correct B. The bank uses derivatives to hedge against potential losses
C. The bank uses derivatives to invest in new products
D. The bank uses derivatives to reduce its liquidity risk

Correct Answer: B

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Question 6
A company is considering the implementation of a just-in-time (JIT) inventory system. What is the primary advantage of JIT inventory system?
Correct A. Reduced inventory costs
B. Improved product quality
C. Increased production efficiency
D. Enhanced customer satisfaction

Correct Answer: A

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Question 7
A sole trader has a business income of ₦500,000 and expenses of ₦300,000. What is the sole trader's profit?
Correct A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: A

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Question 8
A company is considering the implementation of a warehouse management system. What is the primary benefit of such a system?
A. Improved inventory accuracy
Correct B. Enhanced supply chain visibility
C. Increased warehouse productivity
D. Reduced labor costs

Correct Answer: B

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Question 9
A company is considering the implementation of a transportation management system. What is the primary benefit of such a system?
A. Improved route optimization
B. Enhanced transportation visibility
C. Increased transportation productivity
Correct D. Reduced transportation costs

Correct Answer: D

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Question 10
A company is considering the implementation of a production planning system. What is the primary benefit of such a system?
A. Improved production efficiency
B. Enhanced production visibility
Correct C. Increased production productivity
D. Reduced production costs

Correct Answer: C

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Question 11
A firm specializes in the production of two goods: X and Y. The production of good X requires 2 units of labor and 1 unit of capital, while the production of good Y requires 3 units of labor and 2 units of capital. If the firm has 12 units of labor and 8 units of capital, what is the maximum number of units of good X that can be produced?
A. 6
B. 8
Correct C. 10
D. 12

Correct Answer: C

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Question 12
A company has two business units: A and B. Unit A has a profit of ₦120,000 and a total revenue of ₦500,000, while unit B has a profit of ₦80,000 and a total revenue of ₦300,000. What is the ratio of the profit of unit A to the profit of unit B?
A. 1.5
Correct B. 2
C. 3
D. 4

Correct Answer: B

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Question 13
A consumer protection agency has the following data on the number of complaints received per month: January: 120, February: 150, March: 180, April: 200, May: 220. What is the median number of complaints received per month?
A. 180
B. 190
Correct C. 200
D. 210

Correct Answer: C

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Question 14
A firm has the following data on the cost of production: Labor: ₦100,000, Capital: ₦200,000, Total Cost: ₦300,000. What is the marginal cost of production?
A. ₦50,000
Correct B. ₦75,000
C. ₦100,000
D. ₦125,000

Correct Answer: B

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Question 15
A company has the following data on the number of units sold per month: January: 100, February: 120, March: 150, April: 180, May: 200. What is the mode number of units sold per month?
Correct A. 150
B. 180
C. 200
D. 220

Correct Answer: A

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Question 16
The Lagos State Consumer Protection Agency has the power to investigate complaints against businesses that engage in unfair trade practices. Which of the following is a type of unfair trade practice?
Correct A. False advertising
B. Price-fixing
C. Predatory pricing
D. Unfair competition

Correct Answer: A

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Question 17
A company that specializes in the production of specialized machinery for the manufacturing industry is an example of a firm that engages in
A. Horizontal specialization
Correct B. Vertical specialization
C. Product diversification
D. Market diversification

Correct Answer: B

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Question 18
A bank that offers a loan with an interest rate of 10% per annum and a repayment period of 5 years is an example of a
A. Fixed-rate loan
B. Floating-rate loan
C. Variable-rate loan
Correct D. Compound interest loan

Correct Answer: D

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Question 19
A marketing strategy that involves creating a buzz around a new product by offering it at a discounted price is an example of
Correct A. Penetration pricing
B. Skim pricing
C. Price leadership
D. Price bundling

Correct Answer: A

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Question 20
A company that specializes in the production of specialized machinery for the manufacturing industry is an example of a firm that engages in
A. Horizontal specialization
Correct B. Vertical specialization
C. Product diversification
D. Market diversification

Correct Answer: B

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Question 21
A sole trader's business is considered a separate legal entity from its owner. Discuss the implications of this separation on the owner's personal liability.
A. The owner's personal assets are protected from business debts.
Correct B. The owner is personally liable for all business debts and obligations.
C. The business is responsible for the owner's personal debts.
D. The owner's personal assets are not protected from business debts.

Correct Answer: B

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Question 22
A company's articles of association state that the company must hold an annual general meeting (AGM) within 15 months of its incorporation. If the company is incorporated on January 1st and the AGM is held on June 15th, is the company in compliance with its articles of association?
A. Yes, the company is in compliance.
Correct B. No, the company is not in compliance.
C. The company is in compliance, but the AGM should be held within 12 months.
D. The company is not in compliance, but the AGM should be held within 18 months.

Correct Answer: B

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Question 23
A warehouse has a storage capacity of 10,000 units. The warehouse is currently 70% full, and 500 units are being received daily. If the warehouse is to be 90% full in 10 days, how many units can be stored in the warehouse?
Correct A. 8,500 units
B. 9,000 units
C. 9,500 units
D. 10,000 units

Correct Answer: A

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Question 24
A company produces two products, A and B, using two machines, X and Y. The production process for product A requires 2 hours on machine X and 3 hours on machine Y, while product B requires 3 hours on machine X and 2 hours on machine Y. If machine X operates for 12 hours and machine Y operates for 15 hours, how many units of product A and product B can be produced?
Correct A. Product A: 4 units, Product B: 5 units
B. Product A: 5 units, Product B: 4 units
C. Product A: 6 units, Product B: 3 units
D. Product A: 3 units, Product B: 6 units

Correct Answer: A

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Question 25
A company uses a production planning system that allocates 30% of its production capacity to product A and 70% to product B. If the company produces 10,000 units of product A and 20,000 units of product B, what is the total production capacity of the company?
A. 30,000 units
B. 40,000 units
Correct C. 50,000 units
D. 60,000 units

Correct Answer: C

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