POST UTME OSUSTECH 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's marketing strategy involves a mix of advertising and sales promotions. If the advertising budget is ₦500,000 and the sales promotion budget is ₦300,000, what is the total marketing budget?
A. ₦800,000
B. ₦700,000
C. ₦900,000
D. ₦1,000,000
Question 2
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing opportunity costs. However, in a perfectly competitive market, firms are price-takers and cannot influence the market price. Explain why this is the case.
A. Because firms in a perfectly competitive market are price-takers and cannot influence the market price.
B. Because firms in a perfectly competitive market are price-makers and can influence the market price.
C. Because firms in a perfectly competitive market are subject to the law of increasing opportunity costs.
D. Because firms in a perfectly competitive market are not subject to the law of increasing opportunity costs.
Question 3
A company is considering two different modes of transportation for its goods: Mode A, which involves a one-time payment of ₦50,000, and Mode B, which involves a monthly payment of ₦5,000 for 10 months. If the company expects to generate a return of 15% on its transportation investment, which mode should it choose?
A. Mode A
B. Mode B
C. Both modes are equally good
D. Neither mode is good
Question 4
A company has a portfolio of stocks and bonds with a total value of ₦10,000,000. The stocks have a beta of 1.2 and the bonds have a beta of 0.5. If the market risk premium is 8%, what is the expected return on the portfolio?
A. 12%
B. 10%
C. 8%
D. 6%
Question 5
A firm's foreign trade involves importing goods from a foreign country. Which of the following is a key consideration in determining the optimal quantity of imports?
A. The firm's production costs
B. The firm's market demand
C. The foreign country's export prices
D. The firm's transportation costs
Question 6
A company is considering a new business strategy to increase its market share. Discuss the potential impact of the strategy on the company's profits and competitiveness.
A. The strategy will increase the company's profits and competitiveness because it will allow the company to take advantage of new market opportunities.
B. The strategy will decrease the company's profits and competitiveness because it will increase the costs of the company.
C. The strategy will have no impact on the company's profits and competitiveness because it is simply a matter of adjusting the company's marketing efforts.
D. The strategy will increase the company's competitiveness, but it will also decrease its profits.
Question 7
A firm is considering expanding its operations to a new market. The market research indicates that the demand for the firm's product is price-elastic, with a price elasticity of -2. If the firm increases the price of its product by 10%, what will be the percentage change in demand?
A. -20%
B. -10%
C. 0%
D. 10%
Question 8
A firm is considering a new product launch. The product's expected sales are 10,000 units per year, with a price of ₦100 per unit. The variable cost per unit is ₦50, and the fixed cost is ₦500,000. What is the firm's expected profit?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 9
A company is considering two different modes of transport for its goods: road transport and rail transport. Discuss the advantages and disadvantages of each mode of transport.
A. Road transport is more expensive than rail transport, but it is faster and more flexible.
B. Rail transport is more expensive than road transport, but it is safer and more environmentally friendly.
C. Road transport is safer than rail transport, but it is slower and less environmentally friendly.
D. Rail transport is faster than road transport, but it is more expensive and less flexible.
Question 10
A firm is considering exporting its product to a foreign market. The firm's product is currently priced at ₦100,000 in the domestic market. If the exchange rate is 1 USD = 500 NGN, and the firm expects to sell the product for 200 in the foreign market, what will be the percentage change in the firm's revenue?
A. 0%
B. 10%
C. 20%
D. 50%
Question 11
A firm's demand function is given by Q = 100 - 2P. If the firm's price is ₦50, what is the firm's quantity demanded?
A. 50
B. 75
C. 100
D. 125
Question 12
A company is considering two investment options: Option A, which has a 10% chance of yielding a 20% return, and Option B, which has a 20% chance of yielding a 10% return. If the company is risk-averse, which option should it choose?
A. Option A
B. Option B
C. Both options are equally good
D. Neither option is good
Question 13
A consumer protection agency is considering a new regulation to protect consumers from unfair business practices. Discuss the potential impact of the regulation on businesses and consumers.
A. The regulation will increase the costs of businesses, but it will also increase consumer confidence and trust in businesses.
B. The regulation will decrease the costs of businesses, but it will also decrease consumer confidence and trust in businesses.
C. The regulation will have no impact on businesses or consumers because it is simply a matter of enforcing existing laws.
D. The regulation will increase consumer confidence and trust in businesses, but it will also decrease the competitiveness of businesses.
Question 14
A company's business model involves selling products online through its website. The company's marketing strategy involves creating a sense of community among its customers. Which of the following is a likely benefit of this marketing strategy?
A. Increased customer loyalty
B. Increased sales
C. Improved brand image
D. Reduced marketing costs
Question 15
A consumer protection agency has received several complaints about a company's unfair business practices. The agency has decided to investigate the company's business practices. Which of the following is a likely outcome of the investigation?
A. The company will be fined
B. The company will be forced to change its business practices
C. The company will be allowed to continue its business practices
D. The agency will drop the investigation

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