POST UTME SUMMIT UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering the implementation of a new marketing strategy. The strategy involves increasing the price of their product by 10% and reducing the quantity sold by 20%. What is the effect on the company's total revenue?
A. Increase by 8%
B. Decrease by 12%
C. Increase by 4%
D. Decrease by 16%
Question 2
A consumer is considering the purchase of a new product. The product has a price of ₦10,000 and a warranty period of 2 years. The consumer expects to save ₦2,000 per year by purchasing the product. What is the consumer's expected net benefit from purchasing the product?
A. ₦8,000
B. ₦10,000
C. ₦12,000
D. ₦14,000
Question 3
A company's sole trader has a warehouse with a capacity of 10,000 units. If the company's current stock level is 8,000 units, what is the maximum number of units that can be added to the warehouse without exceeding its capacity?
A. 2,000
B. 8,000
C. 10,000
D. 12,000
Question 4
A company has a sole trader business structure. The company's sole trader has a personal bank account and a business bank account. What is the primary advantage of having a separate business bank account?
A. It allows for easier tax preparation
B. It helps to separate personal and business finances
C. It provides a higher level of security for business funds
D. It allows for easier access to business funds
Question 5
A company is considering two different marketing strategies: a high-low strategy and a penetration pricing strategy. Which of the following statements best describes the high-low strategy?
A. A high-low strategy involves setting a high price for a product in order to attract a small number of customers who are willing to pay a premium.
B. A high-low strategy involves setting a low price for a product in order to attract a large number of customers who are price-sensitive.
C. A high-low strategy involves setting a high price for a product in order to attract a large number of customers who are willing to pay a premium.
D. A high-low strategy involves setting a low price for a product in order to attract a small number of customers who are price-sensitive.
Question 6
A firm is considering two different insurance policies: policy A and policy B. Policy A has a premium of ₦1000 and a deductible of ₦500, while policy B has a premium of ₦1500 and a deductible of ₦1000. If the firm wants to minimize its expected loss, what should it do?
A. Choose policy A
B. Choose policy B
C. Choose neither policy
D. Do not insure the firm
Question 7
A company is considering the introduction of a new product line. The product has a high fixed cost of ₦500,000 and a variable cost of ₦200 per unit. The selling price of the product is ₦300 per unit. If the company expects to sell 2,000 units, what is the minimum price at which the product must be sold to break even?
A. ₦250
B. ₦275
C. ₦300
D. ₦325
Question 8
A company has a company business structure. The company has a board of directors and a managing director. What is the primary advantage of having a board of directors?
A. It allows for easier decision-making
B. It provides a higher level of accountability
C. It helps to separate ownership and management
D. It allows for easier access to business funds
Question 9
A consumer protection agency has received a complaint about a company that is selling a product with a misleading label. The label claims that the product is '100% natural' when in fact it contains 20% artificial ingredients. What is the legal basis for the agency's action against the company?
A. The Consumer Protection Act
B. The Trade Practices Act
C. The Advertising Standards Authority
D. The Product Labeling Act
Question 10
A consumer purchases a product with a 5-year warranty. The warranty covers repairs and replacements for defects in materials and workmanship. What type of insurance is this?
A. Product liability insurance
B. Extended warranty insurance
C. Product recall insurance
D. Product damage insurance
Question 11
A company is considering two different transportation modes: trucking and rail. Which of the following statements best describes the advantages of trucking?
A. Trucking is faster and more reliable than rail.
B. Trucking is cheaper and more flexible than rail.
C. Trucking is more environmentally friendly than rail.
D. Trucking is more secure than rail.
Question 12
A warehouse is a type of storage facility used to store goods and merchandise. Which of the following is a benefit of using a warehouse?
A. To reduce the risk of damage to goods.
B. To increase the speed of delivery.
C. To reduce the cost of storage.
D. To increase the security of goods.
Question 13
A firm is considering two different modes of transportation: road and rail. The cost of transporting a unit of goods by road is ₦500, while the cost of transporting the same unit by rail is ₦300. If the firm wants to minimize its transportation cost, what should it do?
A. Use road transportation for all units
B. Use rail transportation for all units
C. Use a combination of road and rail transportation
D. Do not transport the goods
Question 14
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is a key benefit of using public relations in a marketing mix?
A. Building brand awareness
B. Generating leads
C. Creating customer loyalty
D. Increasing sales revenue
Question 15
A bank's primary function is to act as a financial intermediary between savers and borrowers. Which of the following is a type of financial intermediary?
A. A commercial bank.
B. A central bank.
C. A non-bank financial institution.
D. A stock exchange.

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