POST UTME OSUSTECH 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The diagram below shows the demand and supply curves for a particular commodity. What is the equilibrium price?
A. ₦10
B. ₦20
C. ₦30
D. ₦40
Question 2
A company's marketing strategy involves a 20% increase in advertising expenditure. If the initial advertising expenditure was ₦1,500,000, what is the new advertising expenditure?
A. ₦1,800,000
B. ₦1,600,000
C. ₦1,800,000
D. ₦1,600,000
Question 3
A bank offers a credit card with a 20% interest rate and a 2% annual fee. If the consumer charges 1,000 to the card and pays the minimum payment each month, how much will they owe after 12 months?
A. 1,242.40
B. 1,244.80
C. 1,246.20
D. 1,248.60
Question 4
A firm's revenue is given by the equation R = 2x^2 + 5x + 10, where x is the quantity produced. What is the marginal revenue?
A. 4x + 5
B. 2x + 10
C. x + 5
D. x + 10
Question 5
A company's break-even point is the point at which its total revenue equals its total fixed costs and variable costs. If a company's total fixed costs are ₦100,000 and its variable costs are ₦50 per unit, and it sells its product for ₦150 per unit, how many units must it sell to break even?
A. 1000
B. 2000
C. 5000
D. 10000
Question 6
A company's marketing strategy involves creating a sense of urgency to encourage customers to make a purchase. This tactic is an example of which of the following?
A. Scarcity
B. Loss Aversion
C. Social Proof
D. Urgency
Question 7
A foreign trade agreement between two countries involves the exchange of goods and services between them. Discuss the benefits and drawbacks of such an agreement.
A. A foreign trade agreement between two countries involves the exchange of goods and services between them, with benefits including increased trade and economic growth.
B. A foreign trade agreement between two countries involves the exchange of goods and services between them, with drawbacks including increased competition and trade deficits.
C. A foreign trade agreement between two countries involves the exchange of goods and services between them, with benefits including increased trade and economic growth, but drawbacks including increased competition and trade deficits.
D. A foreign trade agreement between two countries involves the exchange of goods and services between them, with no benefits or drawbacks.
Question 8
A firm's cost of capital is 10% per annum. If it invests ₦1,000,000 in a project that is expected to generate a cash inflow of ₦150,000 per annum for 5 years, what is the project's net present value?
A. ₦0
B. ₦50000
C. ₦100000
D. ₦150000
Question 9
A company is considering launching a new product in a foreign market. The company has conducted market research and determined that the product will be successful in the new market. However, the company is concerned about the potential risks associated with entering a new market. Which of the following is a potential risk that the company should consider?
A. Competition from existing brands
B. Cultural differences
C. Language barriers
D. All of the above
Question 10
A consumer is considering purchasing a product that has a 10-year warranty. If the product fails within the warranty period, the consumer can return it for a full refund. However, the consumer is concerned about the potential cost of repairing the product if it fails after the warranty period. Which of the following is a potential cost that the consumer should consider?
A. Repair cost
B. Replacement cost
C. Maintenance cost
D. All of the above
Question 11
A sole trader's business is considered a separate legal entity from its owner. Discuss this statement with reference to the concept of limited liability.
A. A sole trader's business is not considered a separate legal entity from its owner.
B. A sole trader's business is considered a separate legal entity from its owner, but with unlimited liability.
C. A sole trader's business is considered a separate legal entity from its owner, with limited liability.
D. A sole trader's business is not a separate legal entity from its owner, and has no liability.
Question 12
The Consumer Protection Act of 1999 in Nigeria provides for the protection of consumers from unfair trade practices. Which of the following is a fundamental principle of consumer protection?
A. The right to choose
B. The right to safety
C. The right to information
D. The right to redress
Question 13
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 the same
D. become elastic
Question 14
A bank offers a 5-year fixed deposit account with an interest rate of 12% per annum compounded annually. If a customer deposits ₦100,000 at the beginning of the first year, how much will the customer have in the account at the end of the fifth year?
A. ₦163,217.89
B. ₦163,217.91
C. ₦163,217.92
D. ₦163,217.93
Question 15
A warehouse is a facility used for storing goods and merchandise. Discuss the importance of inventory management in a warehouse setting.
A. Inventory management is not important in a warehouse setting, as it is not a critical aspect of the business.
B. Inventory management is important in a warehouse setting, as it helps to track and manage stock levels.
C. Inventory management is very important in a warehouse setting, as it helps to reduce costs and improve efficiency.
D. Inventory management is not important in a warehouse setting, as it is a complex and time-consuming process.

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