Practice Post UTME ACHIEVERS UNIVERSITY commerce 2025 Past Questions

Question 1

A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is NOT a characteristic of a successful marketing strategy?

A. It must be consistent with the company's overall business objectives.

B. It must be tailored to the specific needs of the target market.

C. It must be based on a thorough understanding of the company's competitors.

Correct D. It must be implemented without any budget constraints.

Correct Answer: D

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Question 2

A consumer protection agency has received a complaint about a company's unfair business practices. The agency's investigation reveals that the company has engaged in false advertising, which has caused financial losses to several consumers. What is the most appropriate course of action for the agency?

A. Issue a warning to the company and require it to cease the unfair business practice.

Correct B. Impose a fine on the company and order it to compensate the affected consumers.

C. Refer the matter to the relevant regulatory authority for further action.

D. Dismiss the complaint as frivolous.

Correct Answer: B

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Question 3

A bank's risk management strategy involves diversification of its assets to minimize potential losses. Which of the following is a type of diversification that a bank may use?

A. Diversification by industry

B. Diversification by geography

Correct C. Diversification by asset class

D. Diversification by time

Correct Answer: C

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Question 4

A company's insurance policy covers losses due to natural disasters. The policy has a deductible of ₦100,000. If the company suffers a loss of ₦500,000 due to a natural disaster, what is the amount that the insurance company will pay?

Correct A. ₦400,000

B. ₦500,000

C. ₦600,000

D. ₦700,000

Correct Answer: A

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Question 5

A consumer protection agency has received a complaint about a company's unfair business practices. The agency's investigation reveals that the company has engaged in false advertising, which has caused financial losses to several consumers. What is the most appropriate course of action for the agency?

A. Issue a warning to the company and require it to cease the unfair business practice.

Correct B. Impose a fine on the company and order it to compensate the affected consumers.

C. Refer the matter to the relevant regulatory authority for further action.

D. Dismiss the complaint as frivolous.

Correct Answer: B

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Question 6

A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. What is the primary advantage of registering under CAMA?

A. Limited liability

Correct B. Separate legal entity

C. Easier to raise capital

D. Simplified tax compliance

Correct Answer: B

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Question 7

A company's articles of association state that the company's shares can be transferred only with the consent of the board of directors. What type of share is this?

A. Ordinary share

B. Preference share

C. Redeemable share

Correct D. Restricted share

Correct Answer: D

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Question 8

A company's financial statements show a net loss of ₦500,000. What is the effect on the company's retained earnings?

Correct A. ₦500,000 decrease

B. ₦500,000 increase

C. No effect

D. ₦1,000,000 decrease

Correct Answer: A

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Question 9

A company's insurance policy has a deductible of ₦100,000. If the company suffers a loss of ₦500,000, what amount will the insurance company pay?

Correct A. ₦400,000

B. ₦500,000

C. ₦600,000

D. ₦700,000

Correct Answer: A

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Question 10

A company's warehouse has a capacity of 10,000 square meters. If the company stores goods worth ₦5,000,000, what is the storage cost per square meter?

A. ₦500

B. ₦1,000

C. ₦2,000

Correct D. ₦5,000

Correct Answer: D

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Question 11

A sole trader's business is considered to be a separate legal entity from its owner. What is the main advantage of this separation?

A. Limited liability

B. Separate tax returns

C. Easier to raise capital

Correct D. Greater control over business decisions

Correct Answer: D

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Question 12

A company's articles of association outline its rules and procedures for decision-making. What is the primary purpose of these articles?

A. To define the company's objectives

B. To outline the company's management structure

Correct C. To specify the rules for decision-making

D. To determine the company's financial policies

Correct Answer: C

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Question 13

A marketing campaign aims to increase brand awareness and drive sales. What is the primary goal of this campaign?

A. To reduce production costs

B. To increase market share

C. To improve customer satisfaction

Correct D. To increase brand awareness and drive sales

Correct Answer: D

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Question 14

A bank's primary function is to act as a financial intermediary between savers and borrowers. What is the main advantage of this function?

A. To provide liquidity to borrowers

B. To reduce the risk of lending

C. To increase the efficiency of financial transactions

Correct D. To provide a safe and stable financial system

Correct Answer: D

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Question 15

A warehouse's primary function is to store and manage inventory. What is the main advantage of this function?

A. To reduce storage costs

Correct B. To improve inventory management

C. To increase the efficiency of order fulfillment

D. To reduce the risk of stockouts

Correct Answer: B

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Question 16

Determine the value of x in the equation ( log_{10} (x^2) = 4 ).

A. 10

B. 100

C. 1000

Correct D. 10000

Correct Answer: D

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Question 17

A company has a sole trader business. What is the primary advantage of this business structure?

A. Limited liability

B. Easy to set up

Correct C. No need for formalities

D. No tax benefits

Correct Answer: C

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Question 18

A firm has a warehouse with a capacity of 10,000 units. If it receives a shipment of 5,000 units, what is the new stock level?

A. 5,000

B. 10,000

Correct C. 15,000

D. 20,000

Correct Answer: C

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Question 19

A company uses the First-In-First-Out (FIFO) inventory method. If it has 100 units of stock and sells 20 units, what is the new stock level?

A. 80

B. 90

Correct C. 100

D. 110

Correct Answer: C

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Question 20

A firm has a warehouse with a capacity of 10,000 units. If it receives a shipment of 5,000 units and then sells 2,000 units, what is the new stock level?

A. 7,000

B. 8,000

C. 9,000

Correct D. 10,000

Correct Answer: D

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Question 21

A firm specializes in producing a single product, and its production function is given by the equation ( Q = 2L^{rac{1}{2}}K^{rac{1}{3}} ). If the firm's output is 64 units and the capital stock is 27 units, what is the value of labor (L)?

Correct A. 9

B. 12

C. 16

D. 20

Correct Answer: A

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Question 22

A company uses a marketing mix strategy to promote its product. The marketing mix includes product, price, place, and promotion. Which of the following is NOT a part of the marketing mix?

A. Product

B. Price

C. Place

Correct D. Research

Correct Answer: D

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Question 23

A firm's production function is given by the equation ( Q = 2L^{rac{1}{2}}K^{rac{1}{3}} ). If the firm's output is 64 units and the capital stock is 27 units, what is the value of labor (L)?

Correct A. 9

B. 12

C. 16

D. 20

Correct Answer: A

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Question 24

A company uses a marketing mix strategy to promote its product. The marketing mix includes product, price, place, and promotion. Which of the following is a part of the marketing mix?

Correct A. Product

B. Price

C. Place

D. Research

Correct Answer: A

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Question 25

A firm's production function is given by the equation ( Q = 2L^{rac{1}{2}}K^{rac{1}{3}} ). If the firm's output is 64 units and the capital stock is 27 units, what is the value of labor (L)?

Correct A. 9

B. 12

C. 16

D. 20

Correct Answer: A

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