Practice post utme oau commerce 2023 Past Questions

Question 1

A company's production function is given by the equation ( Q = 100L^0.5K^0.25 ), where Q is the quantity produced, L is the number of labor hours, and K is the capital invested. If the company wants to increase its production by 20% while keeping the capital invested constant, what percentage increase in labor hours is required?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 2

A sole trader, Mr. A, has a business that generates an annual revenue of ₦1,500,000. His fixed costs are ₦200,000, and his variable costs are ₦300,000. What is his break-even point in terms of the number of units sold, assuming each unit sells for ₦5,000?

A. 1000

Correct B. 1500

C. 2000

D. 2500

Correct Answer: B

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Question 3

A company has a warehouse with a capacity to store 10,000 units. The warehouse is currently 70% full, with 7,000 units stored. If the company receives an order for 1,500 units, what is the probability that the warehouse will be full after fulfilling the order?

A. 0.2

B. 0.3

C. 0.4

Correct D. 0.5

Correct Answer: D

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Question 4

A company has a production process that involves two stages: Stage 1 and Stage 2. The probability of success in Stage 1 is 0.8, and the probability of success in Stage 2 is 0.9, given that Stage 1 is successful. What is the probability that the production process will be successful?

A. 0.7

B. 0.8

C. 0.9

Correct D. 0.95

Correct Answer: D

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Question 5

A company has a marketing budget of ₦500,000. It plans to allocate 30% of the budget to advertising and 20% to promotion. What is the amount allocated to promotion?

A. ₦80,000

Correct B. ₦100,000

C. ₦120,000

D. ₦150,000

Correct Answer: B

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Question 6

A company's foreign trade policy is influenced by the following factors: political, economic, social, and technological. Which of the following is NOT a factor that affects a company's foreign trade policy?

Correct A. Environmental

B. Political

C. Economic

D. Social

Correct Answer: A

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Question 7

A firm's decision to export goods is influenced by the following factors: market demand, production costs, transportation costs, and exchange rates. Which of the following is NOT a factor that affects a firm's decision to export goods?

A. Market demand

B. Production costs

C. Transportation costs

Correct D. Government regulations

Correct Answer: D

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Question 8

A company's foreign trade policy is influenced by the following factors: political, economic, social, and technological. Which of the following is a factor that affects a company's foreign trade policy?

A. Environmental

Correct B. Political

C. Economic

D. Social

Correct Answer: B

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Question 9

A firm's decision to import goods is influenced by the following factors: market demand, production costs, transportation costs, and exchange rates. Which of the following is a factor that affects a firm's decision to import goods?

A. Market demand

B. Production costs

Correct C. Transportation costs

D. Government regulations

Correct Answer: C

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Question 10

A company's foreign trade policy is influenced by the following factors: political, economic, social, and technological. Which of the following is a factor that affects a company's foreign trade policy?

A. Environmental

B. Political

Correct C. Economic

D. Social

Correct Answer: C

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Question 11

A company's marketing strategy involves a mix of advertising, sales promotion, and public relations. Which of the following is NOT a characteristic of a successful marketing strategy?

A. Flexibility

B. Consistency

C. Relevance

Correct D. Unpredictability

Correct Answer: D

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Question 12

A firm's break-even point is the point at which its total revenue equals its total fixed costs. Which of the following is a factor that affects a firm's break-even point?

A. Selling price

B. Fixed costs

C. Variable costs

Correct D. All of the above

Correct Answer: D

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Question 13

A company's financial statement shows a net income of ₦1,500,000. Which of the following is a possible reason for this net income?

A. High sales revenue

B. Low operating expenses

C. High interest income

Correct D. All of the above

Correct Answer: D

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Question 14

A firm's marketing mix involves a combination of product, price, promotion, and place. Which of the following is NOT a characteristic of a successful marketing mix?

A. Relevance

B. Consistency

C. Flexibility

Correct D. Unpredictability

Correct Answer: D

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Question 15

A company's financial statement shows a net loss of ₦500,000. Which of the following is a possible reason for this net loss?

A. High operating expenses

B. Low sales revenue

C. High interest expense

Correct D. All of the above

Correct Answer: D

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Question 16

A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is NOT a primary goal of advertising in this context?

A. To inform customers about the company's products

B. To persuade customers to buy the company's products

Correct C. To entertain customers with the company's products

D. To educate customers about the company's products

Correct Answer: C

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Question 17

A firm's cost of capital is 10% per annum. If it invests in a project with a net present value (NPV) of ₦1,500,000, what is the expected rate of return on the investment?

A. 10%

Correct B. 12%

C. 15%

D. 18%

Correct Answer: B

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Question 18

A consumer protection agency has received complaints about a company's unfair business practices. Which of the following is a possible remedy for the consumers?

A. Compensation for damages suffered

B. Restoration of the status quo ante

C. Injunction to stop the unfair practice

Correct D. All of the above

Correct Answer: D

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Question 19

A firm's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is a primary goal of public relations in this context?

A. To inform customers about the company's products

B. To persuade customers to buy the company's products

Correct C. To build goodwill and reputation for the company

D. To entertain customers with the company's products

Correct Answer: C

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Question 20

A firm's cost of capital is 12% per annum. If it invests in a project with a net present value (NPV) of ₦2,000,000, what is the expected rate of return on the investment?

Correct A. 12%

B. 15%

C. 18%

D. 20%

Correct Answer: A

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Question 21

Under the Consumer Protection Act, what is the primary responsibility of a consumer in a contract?

A. To ensure the product is of satisfactory quality

Correct B. To ensure the product is fit for purpose

C. To ensure the product is as described

D. To ensure the product is delivered on time

Correct Answer: B

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Question 22

A company has a warehouse with a capacity of 10,000 units. If 8,000 units are already stored, what is the remaining capacity?

Correct A. 1000

B. 2000

C. 5000

D. 8000

Correct Answer: A

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Question 23

A business has a profit of ₦500,000. If it has a tax rate of 20%, how much will it pay in taxes?

A. ₦100000

Correct B. ₦200000

C. ₦300000

D. ₦400000

Correct Answer: B

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Question 24

A company uses the following marketing mix: product, price, promotion, and place. What is the primary goal of this mix?

A. To increase sales

B. To reduce costs

C. To improve customer satisfaction

Correct D. To increase market share

Correct Answer: D

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Question 25

A bank has a reserve requirement of 10%. If it has a deposit of ₦1,000,000, how much must it reserve?

Correct A. ₦100000

B. ₦200000

C. ₦300000

D. ₦400000

Correct Answer: A

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POST UTME OAU 2023 Commerce | Objective

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