POST UTME OSUSTECH 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the following transportation modes: road, rail, air, and sea. If the company's total transportation cost is ₦1,500,000, and the cost of using road is ₦300,000, while the cost of using rail is ₦200,000, what is the total cost of using air and sea transportation?
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦1,800,000
Question 2
A bank's cash reserve ratio is 10%. If the bank has a cash reserve of ₦1,000,000, what is the maximum amount of loans it can give to customers?
A. ₦9,000,000
B. ₦10,000,000
C. ₦11,000,000
D. ₦12,000,000
Question 3
A company has a warehouse with a capacity of 10,000 units. If the company receives an order for 5,000 units and wants to calculate the remaining capacity, what would be the correct formula to use?
A. Remaining Capacity = Total Capacity - Ordered Quantity
B. Remaining Capacity = Ordered Quantity + Total Capacity
C. Remaining Capacity = Total Capacity + Ordered Quantity
D. Remaining Capacity = Ordered Quantity - Total Capacity
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 5% increase
B. 10% increase
C. 15% increase
D. 20% increase
Question 5
A company's cost of capital is the minimum return that investors require for their investment. What is the effect of a decrease in the cost of capital on a company's weighted average cost of capital?
A. It increases the weighted average cost of capital
B. It decreases the weighted average cost of capital
C. It has no effect on the weighted average cost of capital
D. It increases the risk of bankruptcy
Question 6
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is a primary objective of advertising in this context?
A. To create awareness about the company's products
B. To build brand loyalty
C. To increase sales volume
D. To reduce production costs
Question 7
A firm is considering two different production strategies for its new product. Strategy A involves a high fixed cost of ₦5,000,000, but a low variable cost of ₦1,000 per unit. Strategy B involves a low fixed cost of ₦1,000,000, but a high variable cost of ₦5,000 per unit. Which strategy should the firm choose?
A. Strategy A
B. Strategy B
C. Both strategies are equally viable
D. Neither strategy is viable
Question 8
A sole trader's business is registered with the Corporate Affairs Commission (CAC). What is the primary advantage of this registration?
A. Limited liability
B. Separate legal entity
C. Increased credibility
D. Reduced tax liability
Question 9
A country's balance of payments is a statistical statement that summarizes its international transactions over a specific period. What is the purpose of the current account?
A. To show the country's trade in goods and services
B. To show the country's income and savings
C. To show the country's capital and financial account
D. To show the country's errors and omissions
Question 10
A sole trader has a business income of ₦1,000,000 and a business expense of ₦800,000. If the sole trader wants to calculate their business profit, what would be the correct formula to use?
A. Profit = Business Income - Business Expense
B. Profit = Business Expense - Business Income
C. Profit = Business Income + Business Expense
D. Profit = Business Expense - Business Income + Business Income
Question 11
A company's financial leverage is a measure of its use of debt financing. What is the effect of financial leverage on a company's earnings per share?
A. It increases earnings per share
B. It decreases earnings per share
C. It has no effect on earnings per share
D. It increases the risk of bankruptcy
Question 12
A company uses a just-in-time inventory system to manage its stock levels. The company receives a shipment of 1000 units of a product, and the demand for the product is 500 units per day. What is the reorder point for the product?
A. 500
B. 750
C. 1000
D. 1250
Question 13
A firm's marketing strategy involves creating a brand image that is perceived as unique and memorable. Which of the following marketing tools is most likely to achieve this goal?
A. Packaging
B. Advertising
C. Promotion
D. Public Relations
Question 14
A company's financial statements are a set of reports that provide information about its financial position, performance, and cash flows. What is the purpose of the income statement?
A. To show the company's assets, liabilities, and equity
B. To show the company's cash flow statement
C. To show the company's income statement
D. To show the company's risk management strategy
Question 15
A marketing manager is planning a promotional campaign for a new product. The manager has a budget of ₦500,000 and wants to allocate it among three different advertising channels: television, radio, and print media. If the manager wants to allocate 30% of the budget to television, 20% to radio, and 50% to print media, how much should be allocated to each channel?
A. ₦150,000 to television, ₦100,000 to radio, and ₦250,000 to print media
B. ₦120,000 to television, ₦80,000 to radio, and ₦300,000 to print media
C. ₦180,000 to television, ₦100,000 to radio, and ₦220,000 to print media
D. ₦200,000 to television, ₦120,000 to radio, and ₦180,000 to print media

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