POST UTME OAU 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has two branches, one in Lagos and the other in Abuja. The Lagos branch has a profit of ₦1,500,000 and the Abuja branch has a loss of ₦800,000. What is the overall profit of the company?
A. ₦1,700,000
B. ₦1,300,000
C. ₦1,000,000
D. ₦900,000
Question 2
A firm's marketing mix consists of four Ps: product, price, promotion, and
A. Place
B. People
C. Process
D. Product
Question 3
A company uses the marketing mix to promote its product. If the company increases the price of the product by 10% and reduces the advertising budget by 20%, what is the new marketing mix?
A. (10, 80)
B. (20, 80)
C. (15, 85)
D. (12, 82)
Question 4
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. What is the primary advantage of registering under CAMA?
A. Limited liability
B. Simplified registration process
C. Increased tax benefits
D. Enhanced business credibility
Question 5
A warehouse is used to store goods before they are shipped to customers. What is the primary benefit of using a warehouse?
A. Reduced transportation costs
B. Improved inventory management
C. Increased storage capacity
D. Enhanced customer service
Question 6
A firm's break-even point is the point at which its total revenue equals its total cost. Which of the following is NOT a factor that affects a firm's break-even point?
A. Fixed costs
B. Variable costs
C. Selling price
D. Interest rates
Question 7
A company is considering two different production processes for a new product. Process A has a higher fixed cost but a lower variable cost per unit, while Process B has a lower fixed cost but a higher variable cost per unit. Which process should the company choose if it expects to produce 10,000 units?
A. Process A
B. Process B
C. It depends on the company's expectations for future production levels.
D. The company should choose the process with the lower total cost.
Question 8
A company's marketing strategy involves a mix of advertising and sales promotions. Which of the following is a characteristic of an advertising campaign?
A. It is a short-term strategy
B. It is a long-term strategy
C. It is a cost-effective strategy
D. It is a strategy that targets a specific market segment
Question 9
A bank offers a 5% interest rate on a savings account. If a customer deposits ₦10,000, how much will the customer earn in interest after 2 years?
A. ₦1,000
B. ₦1,500
C. ₦2,000
D. ₦2,500
Question 10
A firm produces two products, A and B. The production costs for product A are ₦100 per unit, and for product B are ₦120 per unit. If the firm produces 500 units of product A and 300 units of product B, what is the total production cost?
A. ₦65,000
B. ₦70,000
C. ₦75,000
D. ₦80,000
Question 11
A firm's production cost per unit is ₦100. If the selling price per unit is ₦150, what is the profit per unit?
A. ₦25
B. ₦50
C. ₦75
D. ₦100
Question 12
A firm is considering two different advertising strategies. Strategy A involves a high upfront cost but a low ongoing cost, while Strategy B involves a low upfront cost but a high ongoing cost. Which strategy should the firm choose if it expects to advertise for 5 years?
A. Strategy A
B. Strategy B
C. It depends on the firm's expectations for future advertising needs.
D. The firm should choose the strategy with the lower total cost.
Question 13
A freight forwarder is responsible for arranging the transportation of goods from one country to another. What is the primary responsibility of a freight forwarder?
A. To negotiate the price of the goods
B. To arrange for the storage of the goods
C. To arrange for the transportation of the goods
D. To handle customs clearance
Question 14
An insurance company is considering offering a new policy to its customers. What is the primary consideration for the insurance company?
A. Premium rate
B. Policy term
C. Risk assessment
D. Claims handling
Question 15
A firm's break-even point is the point at which its total revenue equals its total cost. Which of the following is a factor that affects a firm's break-even point?
A. Fixed costs
B. Variable costs
C. Selling price
D. Interest rates

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