Practice Post UTME BOWEN UNIVERSITY commerce 2017 Past Questions

Question 1

In a perfectly competitive market, the supply curve is typically represented by the market's

Correct A. Law of Supply

B. Law of Demand

C. Law of Diminishing Marginal Utility

D. Law of Increasing Marginal Utility

Correct Answer: A

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Question 2

A company's break-even point is the point at which its total revenue equals its

A. Fixed Costs

B. Variable Costs

Correct C. Total Costs

D. Selling Price

Correct Answer: C

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Question 3

A firm's marginal revenue product is the change in the firm's total revenue resulting from a one-unit change in the quantity of a variable input, such as labor. The marginal revenue product curve is typically downward-sloping because of the law of

Correct A. Diminishing Returns

B. Increasing Returns

C. Constant Returns

D. Law of Supply

Correct Answer: A

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Question 4

A consumer's indifference curve is a graphical representation of the various combinations of two goods that the consumer is equally willing to give up in order to obtain one more unit of the other good. The indifference curve is typically upward-sloping because of the law of

Correct A. Diminishing Marginal Utility

B. Increasing Marginal Utility

C. Diminishing Returns

D. Increasing Returns

Correct Answer: A

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Question 5

A firm's demand curve is typically downward-sloping because of the law of

Correct A. Diminishing Marginal Utility

B. Increasing Marginal Utility

C. Diminishing Returns

D. Law of Supply

Correct Answer: A

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Question 6

A company's financial statements show a decrease in net income by 15% from the previous year. However, the company's total assets increased by 20% during the same period. What is the likely reason for the decrease in net income?

A. Decrease in sales revenue

Correct B. Increase in operating expenses

C. Decrease in accounts receivable

D. Increase in accounts payable

Correct Answer: B

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Question 7

A consumer protection agency receives a complaint from a customer who purchased a product online. The customer claims that the product was not as described and the seller failed to deliver the product within the agreed timeframe. What is the likely outcome of the complaint?

Correct A. The seller is liable for damages and must refund the customer's money

B. The customer is liable for any losses incurred by the seller

C. The complaint is dismissed as the customer failed to provide sufficient evidence

D. The seller is required to provide a replacement product

Correct Answer: A

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Question 8

A company's warehouse is damaged in a fire, resulting in a loss of inventory worth ₦5 million. The company's insurance policy covers losses due to fire, but the policy has a deductible of ₦1 million. What is the company's net loss after deducting the deductible?

Correct A. ₦4 million

B. ₦5 million

C. ₦6 million

D. ₦7 million

Correct Answer: A

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Question 9

A bank's customer deposits ₦10,000 into their account, but the bank's system fails to update the account balance. The customer attempts to withdraw ₦5,000 from the account, but the bank's system still shows a balance of ₦0. What is the likely outcome?

A. The customer's withdrawal is successful, and the bank's system is updated

B. The customer's withdrawal is declined, and the bank's system is updated

C. The customer's withdrawal is successful, but the bank's system remains unchanged

Correct D. The customer's withdrawal is declined, and the bank's system remains unchanged

Correct Answer: D

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Question 10

A company's financial statements show a decrease in net income by 15% from the previous year. However, the company's total assets increased by 20% during the same period. What is the likely reason for the decrease in net income?

A. Decrease in sales revenue

Correct B. Increase in operating expenses

C. Decrease in accounts receivable

D. Increase in accounts payable

Correct Answer: B

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Question 11

In a sole trade business, what is the primary advantage of using a sole proprietorship structure?

A. Limited liability

B. Easy to set up

Correct C. Flexibility in decision-making

D. Tax benefits

Correct Answer: C

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Question 12

A company has a production capacity of 1000 units per day. If it operates for 20 days, what is the total production?

Correct A. 20000

B. 2000

C. 1000

D. 500

Correct Answer: A

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Question 13

A consumer protection law requires that all goods sold must have a warranty period of at least 2 years. If a company sells a product with a warranty period of 1 year, what is the consequence?

A. The company must provide a 2-year warranty

B. The company must refund the customer

Correct C. The company must pay a fine

D. The company must provide a 1-year warranty

Correct Answer: C

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Question 14

A company uses a just-in-time (JIT) inventory system. What is the primary advantage of this system?

Correct A. Reduced inventory costs

B. Improved product quality

C. Increased production capacity

D. Reduced transportation costs

Correct Answer: A

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Question 15

A company has a warehouse with a capacity of 5000 units. If it receives a shipment of 3000 units, what is the remaining capacity?

Correct A. 2000

B. 3000

C. 4000

D. 5000

Correct Answer: A

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Question 16

A firm specializes in producing two goods, X and Y. The production of X requires 2 units of labor and 1 unit of capital, while the production of Y requires 3 units of labor and 2 units of capital. If the firm has 20 units of labor and 15 units of capital, what is the optimal production mix that maximizes profits?

Correct A. Produce 10 units of X and 5 units of Y

B. Produce 5 units of X and 10 units of Y

C. Produce 15 units of X and 0 units of Y

D. Produce 0 units of X and 15 units of Y

Correct Answer: A

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Question 17

A company is considering two different marketing strategies for its new product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. If the company expects to sell 1000 units of the product at a price of ₦500 per unit, what is the optimal marketing strategy that maximizes profits?

Correct A. Strategy A

B. Strategy B

C. Both strategies are equally profitable

D. Neither strategy is profitable

Correct Answer: A

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Question 18

A consumer protection agency is considering two different approaches to regulating a company that has been accused of unfair business practices. Approach A involves a fine of ₦100,000 and a requirement for the company to provide restitution to affected consumers. Approach B involves a fine of ₦500,000 and a requirement for the company to implement new business practices to prevent future unfair business practices. Which approach is more effective in protecting consumers?

A. Approach A

Correct B. Approach B

C. Both approaches are equally effective

D. Neither approach is effective

Correct Answer: B

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Question 19

A company is considering two different business structures for its new venture. Structure A involves a sole proprietorship, while Structure B involves a partnership. If the company expects to generate ₦1,000,000 in revenue and incur ₦500,000 in expenses, what is the optimal business structure that maximizes profits?

Correct A. Structure A

B. Structure B

C. Both structures are equally profitable

D. Neither structure is profitable

Correct Answer: A

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Question 20

A marketing manager is considering two different advertising strategies for a new product. Strategy A involves a high level of social media advertising, while Strategy B involves a low level of social media advertising. If the company expects to sell 1000 units of the product at a price of ₦500 per unit, what is the optimal advertising strategy that maximizes profits?

Correct A. Strategy A

B. Strategy B

C. Both strategies are equally profitable

D. Neither strategy is profitable

Correct Answer: A

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Question 21

The following table shows the probability distribution of the number of insurance claims made by a company in a year.

A. 0.2

B. 0.3

Correct C. 0.5

D. 0.6

Correct Answer: C

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Question 22

A company has a warehouse with a capacity of 1000 units. The warehouse is currently 75% full. If 200 units are added to the warehouse, what is the new percentage of capacity?

A. 80%

Correct B. 85%

C. 90%

D. 95%

Correct Answer: B

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Question 23

A bank offers a 5-year fixed deposit account with an interest rate of 8% per annum compounded annually. If a customer deposits ₦100,000 at the beginning of the first year, what will be the amount in the account at the end of the fifth year?

Correct A. ₦163,922.92

B. ₦164,922.92

C. ₦165,922.92

D. ₦166,922.92

Correct Answer: A

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Question 24

A company exports 500 units of a product to a foreign country. The product is sold at a price of 20 per unit. If the exchange rate is 1 USD = 360 Naira, what is the total value of the export in Naira?

A. ₦10,800,000

Correct B. ₦10,920,000

C. ₦11,040,000

D. ₦11,160,000

Correct Answer: B

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Question 25

A firm produces two products, A and B. The production process requires 2 hours of labor and 1 hour of machine time for product A, and 3 hours of labor and 2 hours of machine time for product B. If the firm has 120 hours of labor and 80 hours of machine time available, how many units of product A and product B should the firm produce to maximize profit?

A. 10 units of A and 20 units of B

B. 15 units of A and 30 units of B

Correct C. 20 units of A and 40 units of B

D. 25 units of A and 50 units of B

Correct Answer: C

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