POST UTME LEAD CITY UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's marketing strategy involves creating a sense of urgency among its customers. This is an example of which of the following?
A. Scarcity
B. Perceived value
C. Perceived risk
D. Scalability
Question 2
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. increase
B. decrease
C. remain constant
D. move in the opposite direction
Question 3
A company's marketing strategy is focused on increasing brand awareness. Which of the following advertising techniques would be most effective in achieving this goal?
A. Print Advertising
B. Television Advertising
C. Radio Advertising
D. Digital Advertising
Question 4
A bank's reserve requirement is 10%. If the bank has a reserve of ₦100,000, how much can it lend to customers?
A. ₦100,000
B. ₦900,000
C. ₦1,000,000
D. ₦1,100,000
Question 5
A company's marketing strategy involves creating a new product line to target a specific demographic. The product line is designed to appeal to the demographic's values and interests. Which of the following marketing strategies is most likely to be used in this scenario?
A. Segmentation
B. Targeting
C. Positioning
D. Differentiation
Question 6
A company's warehouse is experiencing stockouts due to inadequate inventory management. Which of the following is a key performance indicator (KPI) that can help the company improve its inventory management?
A. Inventory turnover ratio
B. Days inventory outstanding
C. Gross margin ratio
D. Return on assets
Question 7
A company's financial statements are audited annually by an independent auditor. This is an example of which of the following?
A. Internal control
B. External audit
C. Financial reporting
D. Corporate governance
Question 8
A firm is considering implementing a total quality management (TQM) system. What is the primary benefit of TQM for the firm?
A. Improved product quality
B. Enhanced customer satisfaction
C. Increased efficiency
D. Reduced costs
Question 9
A company is considering expanding its operations to a new market. The company has identified two potential locations: Location A and Location B. Location A has a larger market size, but Location B has a more favorable business environment. Which location should the company choose?
A. Location A
B. Location B
C. Both locations
D. Neither location
Question 10
A company's warehousing and stock control system is designed to minimize stockouts and overstocking. Which of the following inventory management techniques would be most effective in achieving this goal?
A. Just-In-Time Inventory System
B. Economic Order Quantity (EOQ) System
C. ABC Analysis
D. Vendor-Managed Inventory (VMI) System
Question 11
A company has a warehouse with a capacity of 1000 units. The warehouse is currently 75% full. If 150 units are added to the warehouse, what percentage of the warehouse is now full?
A. 80
B. 85
C. 90
D. 95
Question 12
A consumer is considering purchasing a product that has a 2-year warranty. Which of the following is a key benefit of this warranty?
A. Protection against product defects
B. Enhanced product durability
C. Increased product value
D. Improved product design
Question 13
A company has a capital structure consisting of 60% debt and 40% equity. If the company's cost of debt is 8% and its cost of equity is 12%, what is the company's weighted average cost of capital (WACC)?
A. 6%
B. 7%
C. 8%
D. 9%
Question 14
A company is considering outsourcing its production to a contract manufacturer. Which of the following is a key advantage of outsourcing production?
A. Reduced labor costs
B. Increased flexibility
C. Improved quality control
D. Enhanced brand image
Question 15
A company is considering exporting its products to a new market. What is the primary benefit of exporting for the company?
A. Increased revenue
B. Improved product quality
C. Enhanced customer satisfaction
D. Reduced costs

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