POST UTME UNIOSUN 2024 Commerce | Objective

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Question 1
A company is considering two different production processes for manufacturing a product. Process A requires an initial investment of ₦1,500,000 and has a variable cost of ₦500 per unit. Process B requires an initial investment of ₦2,000,000 and has a variable cost of ₦300 per unit. If the company expects to sell 10,000 units, which process should it choose?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 2
A company is considering implementing a new insurance policy to protect against risks. The company has identified several potential policies, but is concerned about the coverage provided by each policy. Which of the following is a key factor to consider when evaluating the coverage of a new insurance policy?
A. The cost of premiums for the new policy
B. The cost of deductibles for the new policy
C. The cost of co-payments for the new policy
D. The amount of coverage provided by the new policy
Question 3
A bank offers a credit card with an annual interest rate of 20% and a minimum payment of 2% of the outstanding balance. What is the effective interest rate for the first year?
A. 18%
B. 20%
C. 22%
D. 25%
Question 4
In a consumer protection context, what is the primary purpose of the Consumer Protection Act of 1999?
A. To regulate consumer credit
B. To protect consumers from unfair trade practices
C. To promote consumer education
D. To establish consumer tribunals
Question 5
A firm is considering two different marketing strategies for promoting a new product. Strategy A involves a high level of advertising and promotion, with a budget of ₦1,000,000. Strategy B involves a lower level of advertising and promotion, with a budget of ₦500,000. If the firm expects to sell 5,000 units, which strategy should it choose?
A. Strategy A
B. Strategy B
C. Both strategies are equally effective
D. Neither strategy is effective
Question 6
A company is considering implementing a new production process to increase efficiency. The company has identified several potential processes, but is concerned about the risks associated with each process. Which of the following is a key factor to consider when evaluating the risks of a new production process?
A. The cost of equipment for the new process
B. The cost of training employees for the new process
C. The risk of injury to employees using the new process
D. The risk of environmental damage from the new process
Question 7
A sole trader's business is considered a separate legal entity from its owner. Which of the following is a consequence of this separation?
A. The sole trader's business is liable for its owner's debts.
B. The sole trader's business is not liable for its owner's debts.
C. The sole trader's business is responsible for its owner's taxes.
D. The sole trader's business is not responsible for its owner's taxes.
Question 8
A firm specializes in producing a particular good due to economies of scale. However, this specialization leads to a decrease in the variety of goods produced. Which of the following is a consequence of this specialization?
A. Increased production costs
B. Decreased consumer choice
C. Improved product quality
D. Increased competition
Question 9
A marketing company uses a social media platform to promote a product. Which of the following is a characteristic of this platform?
A. High-engagement platform
B. Low-engagement platform
C. Social media platform
D. Traditional advertising platform
Question 10
A firm's marketing strategy is to increase its market share by 15% within the next 6 months. If the current market share is 25%, what is the required sales revenue increase?
A. ₦125,000
B. ₦150,000
C. ₦175,000
D. ₦200,000
Question 11
A company is considering two different production methods for its new product. Method A involves a higher initial investment but lower production costs, while Method B involves a lower initial investment but higher production costs. If the company expects to produce 10,000 units per year for 5 years, and the market price of the product is ₦500 per unit, which production method should the company choose?
A. Method A
B. Method B
C. Method A and Method B are equally profitable
D. More information is needed to make a decision
Question 12
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 instrument that a bank uses to manage its liquidity?
A. Commercial paper
B. Certificates of deposit
C. Treasury bills
D. Mortgage-backed securities
Question 13
A company purchases a liability insurance policy with a premium of ₦100,000. The policy covers a maximum liability of ₦500,000. What is the excess amount?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 14
A firm's production function is given by Q = 2L^0.5 + 3K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?
A. 25
B. 30
C. 35
D. 40
Question 15
An insurance policy covers a business against losses due to natural disasters. Which of the following is a type of risk management strategy?
A. Diversification.
B. Hedging.
C. Speculation.
D. Risk avoidance.

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