POST UTME ACHIEVERS UNIVERSITY 2024 Commerce | Objective

Are you preparing for POST UTME ACHIEVERS UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2024 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
The Consumer Protection Act of 1999 in Nigeria provides for the protection of consumers from unfair trade practices. Which of the following is a key provision of the Act?
A. The Act prohibits the use of false or misleading advertisements.
Correct B. The Act requires businesses to provide clear and accurate information about their products and services.
C. The Act allows consumers to sue businesses for damages caused by unfair trade practices.
D. The Act establishes a consumer protection agency to enforce consumer rights.

Correct Answer: B

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Question 2
A company is considering launching a new product in the Nigerian market. Which of the following marketing strategies would be most effective in creating awareness about the product?
A. Social media advertising
Correct B. Influencer marketing
C. Television commercials
D. Print media advertising

Correct Answer: B

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Question 3
A sole trader is considering expanding their business to include a new product line. Which of the following is a key advantage of a sole trader business structure?
A. Easy to set up and maintain
B. Limited liability for owners
C. Ability to raise capital from investors
Correct D. Flexibility to make decisions quickly

Correct Answer: D

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Question 4
A company is importing goods from a foreign country. Which of the following is a key consideration in determining the cost of importing the goods?
A. Transportation costs
B. Insurance costs
C. Customs duties and taxes
Correct D. All of the above

Correct Answer: D

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Question 5
A company is considering exporting goods to a foreign country. Which of the following is a key consideration in determining the feasibility of the export?
A. Market demand for the product
B. Competitor analysis
C. Transportation costs
Correct D. All of the above

Correct Answer: D

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Question 6
A company is considering two marketing strategies: Strategy A involves a high initial investment with a potential for high returns, while Strategy B involves a low initial investment with a potential for lower returns. If the company chooses Strategy A, it will have to spend ₦1,500,000 on advertising. If it chooses Strategy B, it will have to spend ₦500,000 on advertising. The company's profit function is given by P(x) = 2x^2 - 1000x + 5000, where x is the number of units sold. If the company sells 100 units, what is the total cost of the marketing strategy?
A. ₦2,000,000
Correct B. ₦1,500,000
C. ₦1,000,000
D. ₦500,000

Correct Answer: B

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Question 7
A firm is considering two production strategies: Strategy A involves producing 500 units of a product, while Strategy B involves producing 1000 units of the same product. The firm's production function is given by Q(x) = 2x^2 + 5x - 10, where x is the number of units produced. If the firm chooses Strategy A, what is the total cost of production?
Correct A. ₦1,500,000
B. ₦2,500,000
C. ₦3,000,000
D. ₦4,000,000

Correct Answer: A

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Question 8
A company is considering two transportation strategies: Strategy A involves using a truck to transport goods, while Strategy B involves using a train to transport goods. The company's transportation function is given by T(x) = 2x^2 + 5x - 10, where x is the number of units transported. If the company chooses Strategy A, what is the total cost of transportation?
Correct A. ₦1,000,000
B. ₦2,000,000
C. ₦3,000,000
D. ₦4,000,000

Correct Answer: A

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Question 9
A consumer protection agency is considering two strategies to protect consumers: Strategy A involves educating consumers about their rights, while Strategy B involves providing a hotline for consumers to report complaints. If the agency chooses Strategy A, what is the total cost of the strategy?
Correct A. ₦500,000
B. ₦1,000,000
C. ₦2,000,000
D. ₦3,000,000

Correct Answer: A

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Question 10
A business law firm is considering two strategies to protect its clients: Strategy A involves providing a comprehensive contract, while Strategy B involves providing a comprehensive agreement. If the firm chooses Strategy A, what is the total cost of the strategy?
Correct A. ₦1,000,000
B. ₦2,000,000
C. ₦3,000,000
D. ₦4,000,000

Correct Answer: A

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Question 11
A company is considering a new marketing strategy that involves creating a social media campaign to promote its products. The campaign will be run for 6 months, and the company expects to spend ₦1,500,000 per month on advertising. If the company's profit margin is 25%, and it sells each product for ₦5,000, what is the minimum number of products the company must sell to break even?
A. 2,000 products
Correct B. 3,000 products
C. 4,000 products
D. 5,000 products

Correct Answer: B

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Question 12
A warehouse has a storage capacity of 10,000 units. The warehouse is currently 70% full, and the manager wants to add 2,000 more units of stock. If the warehouse is rectangular in shape, and the length is 3 times the width, what is the minimum width of the warehouse?
A. 10m
B. 15m
Correct C. 20m
D. 25m

Correct Answer: C

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Question 13
A company has a sole trader business structure. The company's owner, Mr. A, has a capital of ₦500,000. He also has a loan of ₦200,000 from a bank. If the company's profit is ₦150,000, what is the owner's net profit?
A. ₦100,000
B. ₦120,000
Correct C. ₦150,000
D. ₦180,000

Correct Answer: C

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Question 14
A company has a warehouse with a capacity of 5,000 units. The warehouse is currently 80% full, and the manager wants to add 1,500 more units of stock. If the warehouse is rectangular in shape, and the length is 2 times the width, what is the maximum number of units that can be stored in the warehouse?
A. 4,000 units
B. 5,000 units
Correct C. 6,000 units
D. 7,000 units

Correct Answer: C

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Question 15
A company has a company business structure. The company has a capital of ₦1,000,000. If the company's profit is ₦200,000, and the company's tax rate is 20%, what is the company's net profit?
A. ₦160,000
B. ₦180,000
Correct C. ₦200,000
D. ₦220,000

Correct Answer: C

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Question 16
In a perfectly competitive market, the supply curve is typically represented by the law of supply, which states that as the price of a good increases, the quantity supplied also increases. However, this is not always the case. What is the name of the phenomenon where the quantity supplied decreases as the price increases?
Correct A. Giffen Goods
B. Inferior Goods
C. Normal Goods
D. Substitutes

Correct Answer: A

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Question 17
A company is considering two different marketing strategies for its new product. The first strategy involves a high level of advertising and promotion, while the second strategy involves a low level of advertising and promotion. Which of the following is a potential advantage of the second strategy?
A. Increased market share
B. Reduced production costs
C. Improved brand recognition
Correct D. Lower marketing expenses

Correct Answer: D

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Question 18
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 price of labor is 10 per unit, and the price of capital is 20 per unit, what is the minimum cost of production?
A. 1000
Correct B. 2000
C. 3000
D. 4000

Correct Answer: B

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Question 19
A company is considering investing in a new project that has a net present value (NPV) of 100,000. However, the company is concerned about the risk associated with the project. What is the name of the measure that captures the risk associated with the project?
A. Beta
B. Standard Deviation
C. Coefficient of Variation
Correct D. Sharpe Ratio

Correct Answer: D

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Question 20
A firm is considering exporting its product to a foreign market. What is the name of the document that the firm needs to obtain in order to export its product?
Correct A. Export License
B. Import License
C. Certificate of Origin
D. Commercial Invoice

Correct Answer: A

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Question 21
A consumer protection agency has been established to regulate the activities of businesses in a particular industry. Which of the following is a key responsibility of this agency?
A. To ensure that businesses comply with all relevant laws and regulations
Correct B. To investigate complaints from consumers and take appropriate action
C. To provide training and education to businesses on consumer protection issues
D. To conduct regular audits of businesses to ensure compliance

Correct Answer: B

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Question 22
A firm is considering entering a new market. Which of the following is a key factor to consider when deciding whether to enter the market?
A. The size of the market
Correct B. The level of competition in the market
C. The firm's ability to produce the product at a lower cost than its competitors
D. The firm's ability to differentiate its product from its competitors

Correct Answer: B

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Question 23
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 5,000 units. What is the minimum number of units that the company must hold in stock?
A. 2,000
B. 3,000
C. 4,000
Correct D. 5,000

Correct Answer: D

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Question 24
A firm has a production cost of ₦100 per unit and a selling price of ₦150 per unit. What is the profit per unit?
A. ₦50
B. ₦75
C. ₦100
Correct D. ₦125

Correct Answer: D

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Question 25
A company has a portfolio of assets with a total value of ₦1,000,000. The company wants to diversify its portfolio by investing in a new asset. What is the maximum amount that the company can invest in the new asset?
A. ₦500,000
B. ₦750,000
Correct C. ₦1,000,000
D. ₦1,250,000

Correct Answer: C

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