POST UTME OSUSTECH 2020 Commerce | Objective

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Question 1
A company's insurance policy covers losses due to fire, theft, and natural disasters. However, the policy has a deductible clause that requires the company to pay the first ₦100,000 of any loss. Using the concept of insurance and risk management, determine the most appropriate course of action for the company in the event of a loss.
A. Pay the first ₦100,000 of the loss and claim the remaining amount from the insurance company
B. Pay the entire loss and claim no amount from the insurance company
C. Increase the deductible clause to ₦200,000
D. Discontinue the insurance policy
Question 2
A firm's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is a key objective of public relations in this context?
A. To create awareness about the company's products
B. To build brand loyalty
C. To improve the company's image
D. To increase sales revenue
Question 3
A consumer has a utility function given by U = 2X + 3Y, where X and Y are the quantities of two goods consumed. If the consumer's income is 100 units of currency and the prices of X and Y are 5 units and 10 units, respectively, what is the optimal bundle of goods that maximizes utility?
A. X = 20, Y = 10
B. X = 15, Y = 15
C. X = 10, Y = 20
D. X = 5, Y = 25
Question 4
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm wants to increase revenue by 10%, what percentage increase in price is required?
A. 5% increase in price
B. 10% increase in price
C. 15% increase in price
D. 20% increase in price
Question 5
A firm's production function is given by Q = 2L^0.5 + 3K^0.5, where Q is output, L is labor, and K is capital. If the firm wants to increase output by 10%, what percentage increase in labor and capital is required?
A. 5% increase in labor and 5% increase in capital
B. 10% increase in labor and 10% increase in capital
C. 15% increase in labor and 15% increase in capital
D. 20% increase in labor and 20% increase in capital
Question 6
A firm's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. What is the term for the process of creating a USP?
A. Positioning
B. Segmentation
C. Targeting
D. Differentiation
Question 7
A firm's profit function is given by π = R - C, where π is the profit, R is the revenue and C is the cost. If the firm's revenue is ₦5000 and its cost is ₦3000, what is the profit?
A. ₦1000
B. ₦2000
C. ₦3000
D. ₦4000
Question 8
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity of a product in this market?
A. ₦1000, 100 units
B. ₦500, 200 units
C. ₦2000, 50 units
D. ₦1500, 75 units
Question 9
A company's marketing strategy involves creating a new product line to target a specific demographic. However, the production costs are high, and the company must decide whether to increase the price of the product or reduce the production costs. Using the concept of elasticity of demand, determine the most appropriate course of action for the company.
A. Increase the price of the product
B. Reduce the production costs
C. Maintain the current price and production costs
D. Discontinue the product line
Question 10
A company has a share capital of ₦10,000,000, divided into 1,000,000 ordinary shares of ₦10 each. What is the company's authorized share capital?
A. ₦10,000,000
B. ₦20,000,000
C. ₦30,000,000
D. ₦40,000,000
Question 11
A company is considering the implementation of a just-in-time (JIT) inventory system. Which of the following is a key advantage of JIT?
A. Reduced inventory costs
B. Improved product quality
C. Increased flexibility in production
D. Enhanced customer service
Question 12
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?
A. 24
B. 36
C. 48
D. 60
Question 13
A company's revenue function is given by R = 100Q - 2Q^2, where R is the total revenue and Q is the quantity sold. If the company sells 50 units of output, what is the total revenue?
A. ₦2500
B. ₦3000
C. ₦3500
D. ₦4000
Question 14
A consumer has a budget constraint of 100 units of currency and a preference for two goods, X and Y. The prices of X and Y are 5 units and 10 units, respectively. If the consumer spends all of their budget on good X, what is the maximum amount of good Y that they can purchase?
A. 5 units of good Y
B. 10 units of good Y
C. 15 units of good Y
D. 20 units of good Y
Question 15
A consumer's budget constraint is given by the equation 2x + 3y = 12. If the consumer's current income is 12 and the price of good x is 2, what is the consumer's current consumption of good y?
A. 2
B. 3
C. 4
D. 6

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