POST UTME UI 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer purchases a product with a defective component. Which of the following laws is most likely to protect the consumer's rights?
A. Consumer Protection Act
B. Sales of Goods Act
C. Contract Act
D. Torts Act
Question 2
A company is considering two different marketing strategies. Strategy A has a probability of success of 0.6 and a probability of failure of 0.4. Strategy B has a probability of success of 0.8 and a probability of failure of 0.2. If the company wants to maximize its expected return, which strategy should it choose?
A. Strategy A
B. Strategy B
C. Both strategies are equally good
D. Neither strategy is good
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm wants to produce 100 units of output, and the wage rate is ₦100 per hour, and the rental rate of capital is ₦200 per hour, how much should the firm pay its workers?
A. ₦5000
B. ₦10000
C. ₦20000
D. ₦50000
Question 4
A firm's marketing strategy involves a mix of advertising and sales promotions. Which of the following is a key benefit of using sales promotions in a marketing mix?
A. Increased brand awareness
B. Improved customer engagement
C. Enhanced credibility
D. Increased sales
Question 5
A sole trader is a type of business organization that is owned and managed by one person. What is the main advantage of a sole trader compared to a partnership?
A. Limited liability
B. Unlimited liability
C. Easy to set up
D. High profit margins
Question 6
A company's Memorandum of Association contains a clause that restricts the company's power to borrow money. What is the legal effect of this clause?
A. The company can borrow money without restriction
B. The company can borrow money only with the approval of the shareholders
C. The company cannot borrow money at all
D. The company can borrow money only up to a certain amount
Question 7
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 compared to other countries. Which of the following is a correct example of comparative advantage?
A. Nigeria producing cotton and importing textiles
B. Nigeria producing textiles and importing cotton
C. Nigeria producing both cotton and textiles
D. Nigeria importing both cotton and textiles
Question 8
A company has a marketing budget of ₦5,000,000 per annum. The company's marketing manager allocates ₦2,000,000 to advertising, ₦1,500,000 to sales promotion, and ₦1,000,000 to public relations. What is the percentage of the marketing budget allocated to advertising?
A. 40%
B. 50%
C. 60%
D. 70%
Question 9
A company is considering launching a new product line. The product's demand is expected to follow a linear trend. If the initial demand is 100 units and the rate of change is 5 units per year, what is the demand after 3 years?
A. 125
B. 150
C. 175
D. 200
Question 10
A firm is considering a new production process that will increase its output by 20% but will also increase its costs by 15%. If the firm's current profit is ₦5,000,000, what will be its expected profit after implementing the new process?
A. ₦4,250,000
B. ₦5,250,000
C. ₦6,250,000
D. ₦7,250,000
Question 11
A firm's cost function is given by C = 2L + 3K. If the firm's labor and capital inputs are 4 and 9 respectively, what is the firm's total cost?
A. 34
B. 40
C. 46
D. 52
Question 12
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two different goods. The prices of the two goods are ₦50 and ₦75 respectively. If the consumer has a budget of ₦1500, how much should the consumer spend on good x?
A. ₦300
B. ₦400
C. ₦500
D. ₦600
Question 13
A business owner is considering the purchase of insurance to protect against business risks. Which of the following types of insurance is most likely to provide the greatest protection?
A. Liability insurance
B. Property insurance
C. Business interruption insurance
D. Professional indemnity insurance
Question 14
A company uses a just-in-time inventory system to manage its stock levels. What is the primary advantage of this system?
A. Reduced inventory costs
B. Improved customer satisfaction
C. Increased efficiency
D. Enhanced supply chain visibility
Question 15
In a sole trade business, what is the primary advantage of adopting a sole proprietorship structure?
A. Limited liability
B. Easy setup and registration
C. Flexibility in decision-making
D. Tax benefits

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