POST UTME SUMMIT UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer purchases a product with a price of ₦1,500. The product has a 10% discount, and the consumer pays with a 5% cashback card. What is the final amount paid?
A. ₦1,350
B. ₦1,400
C. ₦1,450
D. ₦1,500
Question 2
A bank's primary function is to act as a
A. pawnbroker
B. insurance company
C. money lender
D. financial intermediary
Question 3
A firm's production function is given by the equation ( Q = 2L^2 + 3K ), where Q is the quantity produced, L is labor, and K is capital. If the firm wants to produce 100 units of output, how many units of capital are required if labor is fixed at 10 units?
A. 30 units
B. 40 units
C. 50 units
D. 60 units
Question 4
The concept of 'caveat emptor' is relevant in which of the following areas of business law?
A. Consumer Protection Law
B. Contract Law
C. Sales of Goods Act
D. Agency Law
Question 5
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 resulting change in output?
A. Output increases by 10%
B. Output increases by 15%
C. Output increases by 20%
D. Output remains unchanged
Question 6
A consumer protection agency is considering a new regulation to prohibit the use of misleading advertising. Which of the following is a key benefit of this regulation?
A. Increased competition among firms
B. Improved product quality
C. Protection of consumers from false advertising
D. Reduced production costs
Question 7
A firm specializes in producing a particular good because it has a comparative advantage in the production of that good. Which of the following is a consequence of specialization?
A. Increased opportunity cost
B. Increased productivity
C. Increased competition
D. Increased trade
Question 8
The concept of 'hedging' is relevant in which of the following areas of insurance and risk management?
A. Life Insurance
B. Health Insurance
C. Property Insurance
D. Hedging
Question 9
A firm's revenue is maximized when the price elasticity of demand is
A. Less than 1
B. Greater than 1
C. Equal to 1
D. Negative
Question 10
A company's marketing mix involves a product that is priced at 100. If the company wants to increase sales by 20%, what is the minimum price reduction required?
A. 10%
B. 15%
C. 20%
D. 25%
Question 11
A company is sued for violating the Consumer Protection Act. Which of the following is a valid defense?
A. The company had a valid contract with the consumer
B. The company had obtained the necessary permits
C. The consumer had knowledge of the product's risks
D. The company had followed industry standards
Question 12
The concept of risk management in insurance involves identifying and mitigating
A. known risks
B. unknown risks
C. both known and unknown risks
D. no risks
Question 13
A firm's production function is given by the equation ( Q = 2L^2 + 3K ), where Q is the quantity produced, L is labor, and K is capital. If the firm wants to produce 100 units of output, how many units of labor are required if capital is fixed at 10 units?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 14
A bank is considering two different investment options for its customers. Option A involves a fixed interest rate of 10% and a variable interest rate of 5%, while Option B involves a fixed interest rate of 15% and a variable interest rate of 3%. If the bank expects to invest ₦1 million per month for 6 months, what is the total interest earned from each option?
A. ₦90,000
B. ₦108,000
C. ₦126,000
D. ₦144,000
Question 15
A company's marketing strategy involves a mix of product differentiation and market segmentation. Which of the following is a characteristic of product differentiation?
A. Offering a unique product feature
B. Targeting a specific geographic region
C. Creating a new product line
D. Reducing production costs

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