Practice post utme osustech commerce 2019 Past Questions

Question 1

The management of a company is considering the introduction of a new product line. The product requires an initial investment of ₦500 million and is expected to generate revenue of ₦1.2 billion in the first year. However, there is a 20% chance that the product will not be successful and will result in a loss of ₦300 million. What is the expected value of the product line?

A. ₦1.2 billion

Correct B. ₦1.1 billion

C. ₦1.0 billion

D. ₦900 million

Correct Answer: B

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Question 2

A company has two warehouses, A and B. Warehouse A has a capacity of 10,000 units and is currently 70% full, while Warehouse B has a capacity of 5,000 units and is currently 50% full. If the company receives an order for 8,000 units, which warehouse should it use to fulfill the order?

Correct A. Warehouse A

B. Warehouse B

C. Either warehouse

D. Neither warehouse

Correct Answer: A

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Question 3

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?

Correct A. ₦163,217.89

B. ₦163,217.91

C. ₦163,217.92

D. ₦163,217.93

Correct Answer: A

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Question 4

A company has a sole proprietorship business that generates revenue of ₦500,000 per month. The company's expenses include a fixed cost of ₦50,000 per month and a variable cost of ₦10,000 per unit sold. If the company sells 50 units per month, what is its profit?

A. ₦225,000

Correct B. ₦230,000

C. ₦235,000

D. ₦240,000

Correct Answer: B

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Question 5

A company has a fleet of 10 trucks that transport goods from a warehouse to a distribution center. The company uses a routing algorithm to determine the most efficient route for each truck. If the company wants to reduce its fuel consumption by 20%, what should it do?

A. Increase the number of trucks

B. Decrease the number of trucks

Correct C. Use a different routing algorithm

D. Use electric trucks

Correct Answer: C

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Question 6

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

Correct D. The right to redress

Correct Answer: D

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Question 7

A sole trader is a type of business ownership where one person owns and operates the business. What is the main advantage of a sole trader?

Correct A. Easy to set up

B. Easy to manage

C. Easy to finance

D. Easy to exit

Correct Answer: A

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Question 8

A company is a type of business ownership where a group of people come together to form a business. What is the main disadvantage of a company?

A. Limited liability

B. Easy to set up

C. Easy to manage

Correct D. High cost of exit

Correct Answer: D

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Question 9

A bank is a financial institution that provides financial services to its customers. What is the main function of a bank?

A. To provide loans

B. To provide deposits

C. To provide credit

Correct D. To provide all of the above

Correct Answer: D

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Question 10

A communication network is a system of interconnected devices that transmit information. What is the main advantage of a communication network?

A. Easy to set up

B. Easy to manage

C. Easy to finance

Correct D. Easy to expand

Correct Answer: D

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Question 11

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

Correct D. Urgency

Correct Answer: D

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Question 12

A consumer is considering purchasing a product that has a 30-day warranty. If the product fails within the warranty period, the consumer can return it for a full refund. This is an example of which of the following?

A. Implied Warranty

Correct B. Express Warranty

C. Statute of Limitations

D. Product Liability

Correct Answer: B

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Question 13

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?

Correct A. 1,242.40

B. 1,244.80

C. 1,246.20

D. 1,248.60

Correct Answer: A

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Question 14

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

Correct D. All of the above

Correct Answer: D

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Question 15

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

Correct D. All of the above

Correct Answer: D

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Question 16

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.

Correct 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.

Correct Answer: C

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Question 17

A company's memorandum of association is a document that outlines the company's constitution and the rights and duties of its members. Discuss the importance of this document in the context of company law.

Correct A. The memorandum of association is a document that outlines the company's constitution and the rights and duties of its members.

B. The memorandum of association is a document that outlines the company's constitution, but does not include the rights and duties of its members.

C. The memorandum of association is a document that outlines the rights and duties of the company's members, but does not include the company's constitution.

D. The memorandum of association is not a document that outlines the company's constitution or the rights and duties of its members.

Correct Answer: A

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Question 18

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.

Correct 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.

Correct Answer: C

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Question 19

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.

Correct 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.

Correct Answer: C

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Question 20

A consumer protection law is a law that protects consumers from unfair or deceptive business practices. Discuss the importance of such laws in a market economy.

A. Consumer protection laws are not important in a market economy, as they stifle competition and innovation.

B. Consumer protection laws are important in a market economy, as they protect consumers from unfair or deceptive business practices.

Correct C. Consumer protection laws are very important in a market economy, as they promote fair competition and protect consumers' rights.

D. Consumer protection laws are not important in a market economy, as they are unnecessary and burdensome.

Correct Answer: C

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Question 21

In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will

A. increase

Correct B. decrease

C. remain the same

D. become elastic

Correct Answer: B

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Question 22

The diagram below shows the demand and supply curves for a particular commodity. What is the equilibrium price?

A. ₦10

B. ₦20

Correct C. ₦30

D. ₦40

Correct Answer: C

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Question 23

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?

Correct A. 4x + 5

B. 2x + 10

C. x + 5

D. x + 10

Correct Answer: A

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Question 24

A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300 respectively. What is the consumer's optimal bundle?

Correct A. (2, 3)

B. (3, 2)

C. (4, 1)

D. (1, 4)

Correct Answer: A

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Question 25

A firm's cost function is given by the equation C(x) = 2x^2 + 5x + 10, where x is the quantity produced. What is the marginal cost?

Correct A. 4x + 5

B. 2x + 10

C. x + 5

D. x + 10

Correct Answer: A

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