POST UTME OSUSTECH 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering investing in a new warehouse to store its inventory. What is the primary factor it should consider?
A. The cost of construction
B. The location of the warehouse
C. The size of the warehouse
D. The security features of the warehouse
Question 2
A company has a 10% chance of losing a lawsuit, and a 20% chance of winning a lawsuit. What is the expected value of the lawsuit?
A. ₦100
B. ₦200
C. ₦0
D. ₦500
Question 3
A firm's revenue function is given by R = 2x^2 + 3x, where R is the total revenue and x is the quantity sold. If the firm sells 5 units of the product, what is the total revenue?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 4
A company exports goods to a foreign country using the Incoterms 2020 rules. Which of the following Incoterms would be most suitable for this transaction?
A. EXW (Ex Works)
B. FCA (Free Carrier)
C. CPT (Carriage Paid To)
D. DAP (Delivered At Place)
Question 5
A consumer purchases a product from a retailer, but the product is not as described. What is the consumer's remedy?
A. The consumer can sue the retailer for damages
B. The consumer can return the product to the retailer
C. The consumer can seek a refund from the retailer
D. The consumer can cancel the contract
Question 6
A consumer has a budget of ₦100 to spend on two goods, x and y. The price of good x is ₦5, and the price of good y is ₦10. If the consumer wants to maximize utility, how much should the consumer spend on good x?
A. ₦20
B. ₦25
C. ₦30
D. ₦35
Question 7
A consumer protection agency has received complaints about a company's advertising practices. The agency has discovered that the company has been making false claims about its products. Which of the following laws is most likely to be relevant in this situation?
A. Consumer Protection Act
B. Trade Practices Act
C. Advertising Standards Act
D. Competition Act
Question 8
A company is considering entering into a contract with a supplier. The supplier has a reputation for delivering goods late. What type of risk is the company taking on?
A. Commercial risk
B. Operational risk
C. Reputational risk
D. Strategic risk
Question 9
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. Which of the following is a correct example of comparative advantage?
A. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
B. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 150 units of cloth.
C. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
D. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 200 units of cloth.
Question 10
A consumer purchases a product online and discovers that it is defective. What is the consumer's right under the Consumer Protection Act?
A. To return the product for a full refund
B. To exchange the product for a similar one
C. To claim damages for the defective product
D. To cancel the purchase and receive a full refund
Question 11
A company is considering two different production processes for its new product. Process A involves a high initial investment in equipment, but the company expects a high production rate and low maintenance costs. Process B involves a lower initial investment in equipment, but the company expects a lower production rate and higher maintenance costs. Which process is more likely to be adopted by a company that values flexibility?
A. Process A
B. Process B
C. Both processes are equally likely to be adopted
D. Neither process is likely to be adopted
Question 12
A warehouse has a storage capacity of 10,000 units. The warehouse is currently 70% full, and the company expects to receive 5,000 new units within the next week. What is the probability that the warehouse will be full after receiving the new units?
A. 0.5
B. 0.7
C. 0.9
D. 0.1
Question 13
A bank offers a savings account with a 5% annual interest rate and a checking account with a 2% annual interest rate. If a customer deposits ₦10,000 into the savings account and ₦5,000 into the checking account, how much interest will the customer earn in one year?
A. ₦525
B. ₦525
C. ₦550
D. ₦500
Question 14
A logistics company uses a warehouse management system to track inventory levels. Which of the following metrics would be most useful for evaluating the effectiveness of this system?
A. Inventory turnover ratio
B. Days inventory outstanding
C. Fill rate
D. Order fulfillment rate
Question 15
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is the quantity produced, L is the number of laborers, and H is the number of machines. If the firm wants to produce 16 units of output, and it has 4 laborers, how many machines (H) should it hire?
A. 2
B. 4
C. 8
D. 16

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