Practice Post UTME AAUA commerce 2018 Past Questions

Question 1

A company is considering exporting its products to a foreign market. What is the primary advantage of exporting?

A. Increased market share

B. Reduced competition

C. Access to new markets and customers

D. Lower production costs

Question 2

A company has a policy of paying its employees a 10% bonus on their annual salaries. If an employee's annual salary is ₦1,200,000, what is the total amount paid to the employee, including the bonus?

A. ₦1,320,000

B. ₦1,320,000

C. ₦1,320,000

D. ₦1,320,000

Question 3

A company has a policy of paying its employees a 10% bonus on their annual salaries. If an employee's annual salary is ₦1,200,000, what is the total amount paid to the employee, including the bonus?

A. ₦1,320,000

B. ₦1,320,000

C. ₦1,320,000

D. ₦1,320,000

Question 4

A company's 'Inventory Turnover Ratio' is a measure of its ability to sell and replace its inventory. What is the formula for calculating the inventory turnover ratio?

A. ( ext{ITR} = rac{ ext{COGS}}{ ext{Average Inventory}} )

B. ( ext{ITR} = rac{ ext{Average Inventory}}{ ext{COGS}} )

C. ( ext{ITR} = rac{ ext{Sales}}{ ext{COGS}} )

D. ( ext{ITR} = rac{ ext{COGS}}{ ext{Sales}} )

Question 5

A consumer purchases a product for ₦5,000. The product has a warranty period of 2 years. If the consumer returns the product after 1 year, what is the amount of money the consumer is entitled to receive?

A. ₦2,500

B. ₦3,000

C. ₦3,500

D. ₦4,000

Question 6

In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied of that good will

A. decrease

B. increase

C. remain constant

D. move in the opposite direction

Question 7

A firm's profit is given by the formula P = 2x^2 + 5x - 3, where x is the number of units sold. If the firm sells 5 units, what is its profit?

A. ₦13

B. ₦15

C. ₦17

D. ₦19

Question 8

A company produces two products, X and Y. The production process for X requires 2 hours of labor and 1 hour of machine time, while the production process for Y requires 1 hour of labor and 2 hours of machine time. If the company has 8 hours of labor and 6 hours of machine time available, how many units of X and Y should the company produce to maximize profits?

A. X = 4, Y = 2

B. X = 2, Y = 4

C. X = 3, Y = 3

D. X = 1, Y = 5

Question 9

A company's articles of association are filed with which of the following?

A. Registrar of Companies

B. Inland Revenue Service

C. Federal Ministry of Commerce

D. National Industrial Court

Question 10

A bank's reserve requirement is 10%. If the bank has a deposit of ₦100,000, how much must it reserve?

A. ₦10,000

B. ₦15,000

C. ₦20,000

D. ₦25,000

Question 11

A bank offers a 5% interest rate on deposits. If a customer deposits ₦10,000, how much will the customer earn in interest after 1 year?

A. ₦500

B. ₦500

C. ₦500

D. ₦500

Question 12

A sole trader's business is registered under which of the following?

A. Partnership

B. Company

C. Sole Proprietorship

D. Limited Liability Partnership

Question 13

A warehouse's inventory turnover ratio is calculated as follows: Cost of Goods Sold / Average Inventory. What is the numerator in this ratio?

A. Cost of Goods Sold

B. Average Inventory

C. Total Assets

D. Total Liabilities

Question 14

A sole trader is a type of business ownership where one person owns and operates the business. What is the main advantage of being a sole trader?

A. Limited liability

B. Unlimited liability

C. Easy to set up

D. Flexibility in decision-making

Question 15

A company has a production function given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital. If the company wants to produce 100 units of output, how many labor hours and capital units should it use?

A. L = 100, K = 100

B. L = 100, K = 400

C. L = 400, K = 100

D. L = 400, K = 400

POST UTME AAUA 2018 Commerce | Objective

Master the Exam!

Help others prepare! Share this practice hub: