POST UTME COAL CITY UNIVERSITY 2019 Commerce | Objective

Are you preparing for POST UTME COAL CITY UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
A company specializes in producing two products, A and B, using two production processes, X and Y. The production process X is used to produce 60% of product A and 40% of product B, while process Y is used to produce 40% of product A and 60% of product B. If the company uses 100 units of resource X and 100 units of resource Y, what is the total output of product A?
A. 80 units
Correct B. 120 units
C. 100 units
D. 140 units

Correct Answer: B

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Question 2
A sole trader, John, sells his products through two channels: online and offline. The online channel generates 30% of his sales, while the offline channel generates 70% of his sales. If John's total sales are ₦1,500,000, what is the total sales generated by the online channel?
Correct A. ₦450,000
B. ₦450,000
C. ₦450,000
D. ₦450,000

Correct Answer: A

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Question 3
A company uses a just-in-time (JIT) inventory system to manage its stock. The company's inventory level is 100 units, and the reorder point is 80 units. If the company receives a new shipment of 50 units, what is the new inventory level?
Correct A. 150 units
B. 120 units
C. 110 units
D. 130 units

Correct Answer: A

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Question 4
A company uses a transportation mode that has a fixed cost of ₦10,000 and a variable cost of ₦5 per unit. If the company transports 100 units, what is the total transportation cost?
A. ₦600,000
Correct B. ₦500,000
C. ₦600,000
D. ₦700,000

Correct Answer: B

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Question 5
A company uses a warehouse with a capacity of 500 units. The company's inventory level is 300 units, and the company receives a new shipment of 200 units. What is the new inventory level?
Correct A. 500 units
B. 400 units
C. 300 units
D. 200 units

Correct Answer: A

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Question 6
In a production system, what is the primary goal of specialization?
Correct A. To reduce production costs
B. To increase product variety
C. To improve product quality
D. To enhance supply chain efficiency

Correct Answer: A

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Question 7
A company has a warehouse with a capacity of 10,000 units. If the current stock level is 8,000 units and the daily demand is 200 units, what is the maximum number of days the warehouse can supply the demand?
A. 20 days
B. 30 days
Correct C. 40 days
D. 50 days

Correct Answer: C

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Question 8
A risk management strategy involves diversification of assets to minimize risk. What is the primary benefit of diversification?
A. Increased risk
Correct B. Reduced risk
C. Improved return on investment
D. Enhanced liquidity

Correct Answer: B

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Question 9
A company is considering launching a new product. The marketing manager has estimated the potential market size to be 100,000 units. If the company wants to capture 20% of the market share, how many units should it produce?
A. 10,000 units
Correct B. 20,000 units
C. 30,000 units
D. 40,000 units

Correct Answer: B

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Question 10
A production system has a bottleneck at the assembly stage. What is the primary consequence of this bottleneck?
A. Increased production costs
B. Reduced product quality
Correct C. Decreased production capacity
D. Improved supply chain efficiency

Correct Answer: C

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Question 11
A sole trader's business is considered a separate legal entity from its owner. What is the primary reason for this separation?
A. To protect the owner's personal assets from business liabilities
B. To allow the business to operate independently of the owner's personal life
Correct C. To enable the business to enter into contracts and agreements in its own name
D. To facilitate the transfer of ownership to another individual or entity

Correct Answer: C

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Question 12
A company's Memorandum of Association (MoA) outlines its primary objectives. Which of the following is NOT a typical objective of a company's MoA?
A. To generate profits for its shareholders
B. To engage in research and development activities
Correct C. To promote the welfare of its employees
D. To provide charitable services to the community

Correct Answer: C

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Question 13
A consumer has purchased a product from a retailer, but it is defective. What is the primary legal remedy available to the consumer?
A. To claim damages for the defective product
Correct B. To request a refund or replacement of the product
C. To seek an injunction to prevent further sales of the product
D. To file a complaint with the relevant regulatory authority

Correct Answer: B

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Question 14
A company has purchased an insurance policy to protect against business risks. What is the primary purpose of the insurance policy?
Correct A. To provide financial protection against business losses
B. To transfer the risk of business losses to the insurer
C. To reduce the company's tax liability
D. To increase the company's cash flow

Correct Answer: A

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Question 15
A marketing manager is developing a new product launch campaign. Which of the following is NOT a typical marketing objective?
A. To increase brand awareness
B. To generate leads and sales
Correct C. To reduce the company's environmental impact
D. To increase the company's market share

Correct Answer: C

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Question 16
In a consumer protection context, what is the primary purpose of the Consumer Protection Act of 1999?
Correct A. To regulate business practices and protect consumer rights
B. To promote fair competition among businesses
C. To provide a framework for consumer education and awareness
D. To establish a consumer protection agency

Correct Answer: A

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Question 17
A company issues a 5-year bond with a face value of ₦10,000,000 and a coupon rate of 8%. What is the annual coupon payment?
A. ₦800,000
Correct B. ₦1,000,000
C. ₦1,200,000
D. ₦1,600,000

Correct Answer: B

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Question 18
A policyholder purchases a life insurance policy with a premium of ₦50,000 per annum. The policy has a term of 20 years and a sum assured of ₦2,000,000. What is the total premium paid over the policy term?
A. ₦1,000,000
B. ₦1,200,000
Correct C. ₦1,500,000
D. ₦2,000,000

Correct Answer: C

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Question 19
A company exports goods worth ₦5,000,000 to a foreign country. The exchange rate is 1 USD = ₦360. What is the value of the export in USD?
Correct A. USD 13,888.89
B. USD 14,444.44
C. USD 15,000.00
D. USD 16,666.67

Correct Answer: A

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Question 20
A firm's break-even point is calculated to be 1,000 units of production at a selling price of ₦200 per unit and a variable cost of ₦150 per unit. What is the contribution margin per unit?
A. ₦50
Correct B. ₦75
C. ₦100
D. ₦125

Correct Answer: B

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Question 21
A consumer purchases a product with a price of ₦10,000 and a discount of 15%. What is the amount of the discount?
Correct A. ₦1,500
B. ₦1,750
C. ₦2,000
D. ₦2,250

Correct Answer: A

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Question 22
A company's financial statements show a net income of ₦1,500,000 and a total equity of ₦3,000,000. What is the return on equity (ROE) percentage?
A. 50%
Correct B. 60%
C. 70%
D. 80%

Correct Answer: B

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Question 23
A firm's cash flow statement shows a net cash inflow of ₦2,000,000 and a net income of ₦1,500,000. What is the cash flow margin percentage?
A. 133.33%
B. 150%
Correct C. 166.67%
D. 200%

Correct Answer: C

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Question 24
A company's balance sheet shows a total assets of ₦5,000,000 and a total liabilities of ₦2,000,000. What is the equity ratio percentage?
A. 40%
Correct B. 50%
C. 60%
D. 70%

Correct Answer: B

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Question 25
A firm's income statement shows a gross profit of ₦2,000,000 and a net income of ₦1,500,000. What is the gross margin percentage?
A. 75%
B. 80%
C. 85%
D. 90%

Correct Answer: VIEW ANSWER

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