Practice Post UTME ACHIEVERS UNIVERSITY commerce 2023 Past Questions

Question 1

A company is sued for violating the Consumer Protection Act. The company claims that the product was not defective at the time of sale. However, the consumer alleges that the product was defective and caused harm. Which of the following is a valid defense for the company?

A. The company can argue that the consumer was aware of the product's defects at the time of purchase.

B. The company can claim that the product was not used as intended, which caused the harm.

C. The company can argue that the harm was caused by a third party, not the product itself.

Correct D. The company can claim that the product was not defective at the time of sale.

Correct Answer: D

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Question 2

A company is considering launching a new product in a foreign market. The company has conducted market research and determined that the product will be successful. However, the company is concerned about the potential risks of launching a new product in a foreign market. Which of the following is a key consideration for the company?

A. The company should consider the cultural differences between the home market and the foreign market.

Correct B. The company should consider the regulatory environment of the foreign market.

C. The company should consider the potential risks of intellectual property infringement.

D. The company should consider the potential risks of currency fluctuations.

Correct Answer: B

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Question 3

A sole trader is considering expanding their business by hiring employees. Which of the following is a key consideration for the sole trader?

Correct A. The sole trader should consider the potential risks of hiring employees, including the risk of employee turnover.

B. The sole trader should consider the potential benefits of hiring employees, including increased productivity.

C. The sole trader should consider the potential impact on their personal finances, including the risk of increased taxes.

D. The sole trader should consider the potential impact on their business reputation, including the risk of negative publicity.

Correct Answer: A

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Question 4

A company is considering entering into a joint venture with another company. Which of the following is a key consideration for the company?

Correct A. The company should consider the potential risks of joint venture, including the risk of loss of control.

B. The company should consider the potential benefits of joint venture, including increased market share.

C. The company should consider the potential impact on their business reputation, including the risk of negative publicity.

D. The company should consider the potential impact on their personal finances, including the risk of increased taxes.

Correct Answer: A

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Question 5

A company is considering launching a new product in a foreign market. The company has conducted market research and determined that the product will be successful. However, the company is concerned about the potential risks of launching a new product in a foreign market. Which of the following is a key consideration for the company?

A. The company should consider the cultural differences between the home market and the foreign market.

Correct B. The company should consider the regulatory environment of the foreign market.

C. The company should consider the potential risks of intellectual property infringement.

D. The company should consider the potential risks of currency fluctuations.

Correct Answer: B

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Question 6

A company's inventory management system uses a first-in-first-out (FIFO) method. If the company has 150 units of a product with a cost of ₦120 per unit, and 50 units are sold, what is the total value of the remaining units?

A. ₦18,000

Correct B. ₦19,500

C. ₦20,250

D. ₦21,000

Correct Answer: B

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Question 7

A sole trader, Mr. Adebayo, has a business that generates ₦1,500,000 in revenue and ₦1,200,000 in expenses. What is his profit?

Correct A. ₦300,000

B. ₦300,500

C. ₦300,000

D. ₦300,250

Correct Answer: A

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Question 8

A company's balance sheet shows total assets of ₦5,000,000, total liabilities of ₦2,500,000, and total equity of ₦2,500,000. What is the company's debt-to-equity ratio?

Correct A. 1:1

B. 2:1

C. 1:2

D. 3:1

Correct Answer: A

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Question 9

A bank's cash reserve ratio is 20%. If the bank has ₦10,000,000 in deposits, how much cash must it hold in reserve?

Correct A. ₦2,000,000

B. ₦2,500,000

C. ₦2,000,000

D. ₦2,750,000

Correct Answer: A

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Question 10

A company's transportation costs are ₦1,000,000 for a 10-ton shipment. What is the cost per ton?

A. ₦100,000

Correct B. ₦90,000

C. ₦110,000

D. ₦120,000

Correct Answer: B

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Question 11

What is the primary goal of risk management in insurance?

A. To maximize profits

Correct B. To minimize losses

C. To increase market share

D. To reduce competition

Correct Answer: B

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Question 12

A company exports goods worth ₦500,000 to a foreign country. If the exchange rate is 1 USD = 360 NGN, how much is the export worth in USD?

A. 1,389.89

B. 1,389.99

Correct C. 1,390.00

D. 1,390.10

Correct Answer: C

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Question 13

A consumer purchases a product for ₦10,000. If the product is subject to a 10% sales tax, how much will the consumer pay in total?

A. ₦11,000

Correct B. ₦11,100

C. ₦11,200

D. ₦11,300

Correct Answer: B

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Question 14

A company produces 500 units of a product per day. If the production cost is ₦200 per unit, what is the total daily production cost?

A. ₦100,000

B. ₦110,000

Correct C. ₦120,000

D. ₦130,000

Correct Answer: C

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Question 15

A consumer purchases a product for ₦5,000. If the product is subject to a 5% sales tax, how much will the consumer pay in total?

A. ₦5,250

Correct B. ₦5,300

C. ₦5,350

D. ₦5,400

Correct Answer: B

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Question 16

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

A. increase

Correct B. decrease

C. remain constant

D. move in the opposite direction

Correct Answer: B

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Question 17

A firm's production function is given by Q = 2L^0.5K^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?

Correct A. 24

B. 36

C. 48

D. 60

Correct Answer: A

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Question 18

A consumer's indifference curve is given by the equation u(x,y) = 2x + 3y. If the consumer's current consumption bundle is (x,y) = (4,6), what is the consumer's current utility level?

A. 22

Correct B. 24

C. 26

D. 28

Correct Answer: B

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Question 19

A firm's demand function is given by Q = 100 - 2P. If the firm's current price is P = 20, what is the firm's current quantity demanded?

Correct A. 60

B. 70

C. 80

D. 90

Correct Answer: A

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Question 20

A consumer's budget constraint is given by the equation 2x + 3y = 12. If the consumer's current consumption bundle is (x,y) = (2,4), what is the consumer's current utility level?

A. 8

Correct B. 10

C. 12

D. 14

Correct Answer: B

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Question 21

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

A. Partnership

B. Limited Liability Company

Correct C. Sole Proprietorship

D. Cooperative Society

Correct Answer: C

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Question 22

A company's articles of association is a document that outlines its

A. Objectives

B. Share Capital

C. Management Structure

Correct D. Rules and Regulations

Correct Answer: D

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Question 23

A warehouse's inventory control system is based on the principle of

Correct A. First-In-First-Out (FIFO)

B. Last-In-First-Out (LIFO)

C. Average Cost

D. Specific Identification

Correct Answer: A

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Question 24

A foreign trade agreement between two countries is based on the principle of

Correct A. Most-Favored-Nation (MFN)

B. Reciprocal Trade Agreement

C. Tariff Reduction

D. Quota System

Correct Answer: A

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Question 25

A company's transport policy is based on the principle of

A. Economies of Scale

B. Route Optimization

C. Modal Shift

Correct D. Transport Cost Minimization

Correct Answer: D

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