POST UTME LAUTECH 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering the implementation of a just-in-time (JIT) inventory system. What is the primary advantage of JIT inventory system?
A. Reduced inventory costs
B. Improved product quality
C. Increased production efficiency
D. Enhanced customer satisfaction
Question 2
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
C. 200
D. 210
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
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
Question 4
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.
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.
Question 5
A marketing strategy that involves creating a buzz around a new product by offering it at a discounted price is an example of
A. Penetration pricing
B. Skim pricing
C. Price leadership
D. Price bundling
Question 6
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
C. Increased production productivity
D. Reduced production costs
Question 7
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
D. Compound interest loan
Question 8
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
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 9
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
B. 2
C. 3
D. 4
Question 10
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
C. The company has a high level of debt
D. The company has a high level of profitability
Question 11
A sole trader has a business income of ₦500,000 and expenses of ₦300,000. What is the sole trader's profit?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 12
A firm specializes in producing a single product, which is used as an input in the production of another product. This is an example of _______.
A. Economies of scale
B. Production specialization
C. Division of labor
D. Comparative advantage
Question 13
A company's production costs are given by the equation C(x) = 2x^2 + 5x + 3, where x is the number of units produced. If the company wants to minimize its costs, how many units should it produce?
A. 5
B. 10
C. 15
D. 20
Question 14
A country is experiencing a trade deficit due to a high level of imports and a low level of exports. Which of the following policies would be most effective in reducing the trade deficit?
A. Increasing tariffs on imports
B. Decreasing taxes on exports
C. Increasing government spending
D. Decreasing government spending
Question 15
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
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

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