POST UTME BOWEN UNIVERSITY 2021 Commerce | Objective

Are you preparing for POST UTME BOWEN UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2021 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?
Correct A. Prohibition of false or misleading advertisements
B. Establishment of the Consumer Protection Council
C. Compensation for consumers who suffer loss or injury due to unfair trade practices
D. Regulation of consumer credit

Correct Answer: A

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Question 2
A company is registered under the Companies and Allied Matters Act 2020 in Nigeria. What is the primary purpose of registering a company?
A. To obtain a business license
Correct B. To limit the liability of its owners
C. To raise capital from investors
D. To establish a sole proprietorship

Correct Answer: B

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Question 3
A sole trader in Nigeria is required to keep records of all financial transactions. What is the primary purpose of keeping these records?
A. To calculate tax liability
Correct B. To prepare financial statements
C. To identify areas for cost reduction
D. To demonstrate compliance with tax laws

Correct Answer: B

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Question 4
A bank in Nigeria offers a loan to a customer at an interest rate of 12% per annum. What is the present value of a future payment of ₦100,000 due in 5 years?
Correct A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000

Correct Answer: A

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Question 5
A company in Nigeria is considering the production of a new product. What is the primary benefit of producing a new product?
A. Increased revenue
B. Improved market share
C. Reduced competition
Correct D. Increased market demand

Correct Answer: D

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Question 6
The concept of 'just-in-time' inventory management is most closely associated with which of the following transportation modes?
A. Air Freight
B. Truckload
Correct C. Intermodal
D. Rail

Correct Answer: C

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Question 7
A firm's decision to use a particular mode of transportation is influenced by which of the following factors?
A. Cost
B. Speed
C. Reliability
Correct D. All of the above

Correct Answer: D

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Question 8
The concept of 'total quality management' is most closely associated with which of the following inventory control strategies?
Correct A. Just-in-Time
B. Economic Order Quantity
C. Safety Stock
D. Vendor Managed Inventory

Correct Answer: A

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Question 9
A firm's decision to use a particular inventory control strategy is influenced by which of the following factors?
A. Cost
B. Speed
C. Reliability
Correct D. All of the above

Correct Answer: D

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Question 10
The concept of 'vendor managed inventory' is most closely associated with which of the following inventory control strategies?
A. Just-in-Time
B. Economic Order Quantity
C. Safety Stock
Correct D. Vendor Managed Inventory

Correct Answer: D

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Question 11
In a perfectly competitive market, the supply curve is downward sloping because of the law of increasing marginal opportunity cost. What is the mathematical representation of this concept?
Correct A. ( MC = MPF )
B. ( MC = MPB )
C. ( MC = MPF + rac{1}{2} )
D. ( MC = MPF - rac{1}{2} )

Correct Answer: A

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Question 12
A company has a production function given by ( Q = 2L^2 + 3K ). If the price of labor is ( rac{dL}{dP} = 10 ) and the price of capital is ( rac{dK}{dP} = 5 ), what is the marginal product of labor?
Correct A. ( MP_L = 4L )
B. ( MP_L = 6L )
C. ( MP_L = 8L )
D. ( MP_L = 10L )

Correct Answer: A

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Question 13
A firm is considering two investment projects. Project A has a 10% chance of success and a 90% chance of failure, with a payoff of ₦100,000 if it succeeds. Project B has a 20% chance of success and an 80% chance of failure, with a payoff of ₦200,000 if it succeeds. Which project should the firm choose?
A. Project A
Correct B. Project B
C. Both projects are equally likely to succeed
D. Neither project is a good investment

Correct Answer: B

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Question 14
A bank has a loan portfolio with a total value of ₦1,000,000. The bank's risk management team has estimated that the probability of default for each loan is 5%. What is the expected value of the loan portfolio?
A. ₦950,000
Correct B. ₦975,000
C. ₦990,000
D. ₦995,000

Correct Answer: B

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Question 15
A company is considering launching a new product. The company's marketing team has estimated that the probability of success for the product is 30%. What is the expected value of the product launch?
A. ₦300,000
Correct B. ₦350,000
C. ₦400,000
D. ₦450,000

Correct Answer: B

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Question 16
A company's marketing strategy involves creating a brand identity that appeals to a specific demographic. Which of the following marketing mix elements is most closely related to this strategy?
A. Product
B. Price
Correct C. Promotion
D. Place

Correct Answer: C

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Question 17
A sole trader's business is affected by the following factors: market conditions, government policies, and competition. Which of the following business units is most closely related to this scenario?
Correct A. Sole Trader
B. Partnership
C. Company
D. Cooperative

Correct Answer: A

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Question 18
A company's inventory management system involves tracking the quantity of goods in stock. Which of the following inventory control methods is most closely related to this scenario?
A. Just-In-Time
Correct B. Economic Order Quantity
C. Material Requirements Planning
D. Vendor-Managed Inventory

Correct Answer: B

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Question 19
A company's risk management strategy involves identifying and mitigating potential risks. Which of the following risk management techniques is most closely related to this scenario?
A. Diversification
Correct B. Hedging
C. Risk Aversion
D. Risk Seeking

Correct Answer: B

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Question 20
A company's marketing strategy involves creating a brand identity that appeals to a specific demographic. Which of the following marketing mix elements is most closely related to this strategy?
A. Product
B. Price
Correct C. Promotion
D. Place

Correct Answer: C

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Question 21
A sole trader's business is considered a separate legal entity from its owner. However, the owner's personal assets are still at risk in case of business debts. What is the name of this type of risk?
Correct A. Unlimited Liability
B. Limited Liability
C. Joint Liability
D. Personal Liability

Correct Answer: A

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Question 22
A company's articles of association can be amended by a majority vote of the shareholders. What is the term for this type of amendment?
Correct A. Ordinary Resolution
B. Special Resolution
C. Extraordinary Resolution
D. Emergency Resolution

Correct Answer: A

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Question 23
A business needs to store 500 units of a product in a warehouse. The warehouse has a capacity of 2000 units. What is the maximum number of batches that can be stored in the warehouse?
A. 2
Correct B. 3
C. 4
D. 5

Correct Answer: B

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Question 24
A company produces 1000 units of a product per day. The product sells for ₦500 per unit. What is the total revenue generated by the company in a day?
Correct A. ₦500,000
B. ₦500,000.00
C. ₦500,000.00
D. ₦500,000

Correct Answer: A

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Question 25
A business has a production cost of ₦200 per unit and a selling price of ₦500 per unit. What is the profit per unit?
Correct A. ₦300
B. ₦300.00
C. ₦300.00
D. ₦300

Correct Answer: A

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