POST UTME OAU 2022 Commerce | Objective

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Question 1
A business uses a pricing strategy that involves charging different prices to different customers for the same product. What type of pricing strategy is this?
A. Penetration pricing
B. Skim pricing
C. Price discrimination
D. Value-based pricing
Question 2
A sole trader's business is considered a "sole proprietorship" because it is owned and operated by one person. Which of the following is a correct description of this type of business?
A. A partnership between two or more people
B. A business owned and operated by one person
C. A corporation with multiple shareholders
D. A cooperative owned by its members
Question 3
A company is considering exporting its products to a foreign market. The company has identified a potential customer who is interested in purchasing 1,000 units of the product. However, the customer is requesting a 30% discount on the price. What is the minimum price that the company can offer to the customer?
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 4
A company exports goods to a foreign country and receives payment in a foreign currency. What type of trade is this?
A. Import
B. Export
C. Domestic trade
D. International trade
Question 5
A company's insurance policy covers losses due to natural disasters. Which of the following is a correct description of this type of insurance?
A. Liability insurance
B. Property insurance
C. Casualty insurance
D. Workers' compensation insurance
Question 6
In a sole trade business, the owner's personal assets are not protected from business liabilities. Which of the following is a characteristic of a sole trade business?
A. Separate legal entity
B. Unlimited liability
C. Partnership
D. Limited liability
Question 7
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will
A. decrease
B. increase
C. remain constant
D. move in the opposite direction
Question 8
A firm's revenue function is given by R = 100x - 2x^2, where x is the number of units sold. If the firm wants to maximize its revenue, how many units should it sell?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 9
A company's marketing strategy involves creating a new product line to target a specific demographic. Which of the following is a correct description of this strategy?
A. Product differentiation
B. Market segmentation
C. Target marketing
D. Positioning
Question 10
A company has a budget of ₦100,000 to invest in either a warehouse or a transportation system. The warehouse costs ₦80,000 and has a return on investment of 10%, while the transportation system costs ₦60,000 and has a return on investment of 15%. Which investment should the company choose?
A. Warehouse
B. Transportation system
C. Either investment is equally good
D. Neither investment is good
Question 11
A firm's production function is given by Q = 2L^0.4K^0.3, where Q is output, L is labor, and K is capital. If the firm wants to increase output by 20% while keeping labor constant, how much should it increase its capital?
A. 10%
B. 20%
C. 30%
D. 40%
Question 12
A commercial bank's primary function is to act as a "warehouse" for the economy by providing a safe place for people to store their money. Which of the following is a correct description of this function?
A. To provide loans to customers
B. To act as a safe place for people to store their money
C. To facilitate the exchange of goods and services
D. To manage the risk of investments
Question 13
A company has a foreign trade agreement with a country that has a currency exchange rate of 1 USD = 360 Naira. If the company imports goods worth 10,000, what is the total cost in Naira?
A. ₦3,600,000
B. ₦3,600,000
C. ₦3,600,000
D. ₦3,600,000
Question 14
A company's foreign trade involves exporting goods worth ₦500 million to a foreign country. If the exchange rate is 1 USD = ₦400, what is the value of the exported goods in USD?
A. 1,250,000
B. 1,000,000
C. 1,500,000
D. 2,000,000
Question 15
A company has a warehouse with a capacity of 1000 units. If it receives a shipment of 800 units, what is the new capacity?
A. 1000
B. 1200
C. 800
D. 0

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