POST UTME COVENANT UNIVERSITY 2021 Commerce | Objective

Are you preparing for POST UTME COVENANT 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
Determine the optimal storage capacity for a warehouse with a maximum floor area of 5000 square meters, given that the storage density is 2.5 pallets per square meter, and the average pallet weight is 500 kilograms.
A. 1000 pallets
B. 2000 pallets
Correct C. 2500 pallets
D. 3000 pallets

Correct Answer: C

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Question 2
A company is considering two transportation options for its products: Option A, which has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit, and Option B, which has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the company plans to transport 1000 units, which option is more cost-effective?
A. Option A
B. Option B
C. Option A is more cost-effective
Correct D. Option B is more cost-effective

Correct Answer: D

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Question 3
A foreign trade agreement between two countries involves the exchange of 1000 units of Product A for 1200 units of Product B. If the exchange rate is 1:1.2, and the value of Product A is ₦100 per unit, what is the total value of the trade in naira?
A. ₦120,000
B. ₦150,000
Correct C. ₦180,000
D. ₦200,000

Correct Answer: C

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Question 4
A company has a warehouse with a capacity of 5000 pallets. The storage density is 2.5 pallets per square meter, and the average pallet weight is 500 kilograms. If the company wants to store 2000 pallets, what is the maximum weight that can be stored in the warehouse?
A. 1,000,000 kilograms
Correct B. 1,250,000 kilograms
C. 1,500,000 kilograms
D. 1,750,000 kilograms

Correct Answer: B

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Question 5
A company is considering two insurance options for its products: Option A, which has a premium of ₦50,000 and a deductible of ₦10,000, and Option B, which has a premium of ₦30,000 and a deductible of ₦5,000. If the company expects to incur a loss of ₦20,000, which option is more cost-effective?
A. Option A
B. Option B
C. Option A is more cost-effective
Correct D. Option B is more cost-effective

Correct Answer: D

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Question 6
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 8,000 units. If the warehouse is currently 70% full, what is the probability that the company will be able to fulfill the order without exceeding the warehouse's capacity?
A. 0.7
Correct B. 0.8
C. 0.9
D. 1.0

Correct Answer: B

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Question 7
A consumer protection agency receives a complaint from a customer who claims that a company has sold a defective product. The agency investigates and finds that the product was indeed defective. However, the company claims that the customer misused the product, which caused the defect. What is the most likely outcome of the agency's investigation?
A. The company will be fined for selling a defective product.
B. The customer will be fined for misusing the product.
C. The agency will close the case due to lack of evidence.
Correct D. The company will be required to replace the defective product.

Correct Answer: D

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Question 8
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 8,000 units. If the warehouse is currently 70% full, what is the probability that the company will be able to fulfill the order without exceeding the warehouse's capacity?
A. 0.7
Correct B. 0.8
C. 0.9
D. 1.0

Correct Answer: B

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Question 9
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 8,000 units. If the warehouse is currently 70% full, what is the probability that the company will be able to fulfill the order without exceeding the warehouse's capacity?
A. 0.7
Correct B. 0.8
C. 0.9
D. 1.0

Correct Answer: B

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Question 10
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 8,000 units. If the warehouse is currently 70% full, what is the probability that the company will be able to fulfill the order without exceeding the warehouse's capacity?
A. 0.7
Correct B. 0.8
C. 0.9
D. 1.0

Correct Answer: B

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Question 11
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. Compulsory labeling of products
D. Prohibition of price-fixing agreements

Correct Answer: A

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Question 12
A company is considering the establishment of a new branch in a foreign country. Which of the following is a key factor to consider in the decision-making process?
Correct A. Market size and growth potential
B. Availability of raw materials
C. Labor costs and availability
D. Government regulations and policies

Correct Answer: A

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Question 13
A sole trader is considering the purchase of a new piece of equipment for their business. Which of the following is a key consideration?
A. The cost of the equipment
Correct B. The potential return on investment
C. The impact on cash flow
D. The effect on tax liability

Correct Answer: B

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Question 14
A company is considering the use of a new transportation method for its goods. Which of the following is a key consideration?
A. The cost of transportation
Correct B. The reliability of the transportation method
C. The impact on delivery time
D. The effect on packaging requirements

Correct Answer: B

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Question 15
A bank is considering the establishment of a new branch in a rural area. Which of the following is a key factor to consider in the decision-making process?
Correct A. Market size and growth potential
B. Availability of raw materials
C. Labor costs and availability
D. Government regulations and policies

Correct Answer: A

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Question 16
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases its labor input from 100 units to 121 units, and its capital input from 100 units to 121 units, by how many percentage points will the quantity produced increase?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 17
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue function is given by MR = 200 - 4P, find the price at which the firm's marginal revenue equals its marginal cost.
Correct A. ₦50
B. ₦75
C. ₦100
D. ₦125

Correct Answer: A

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Question 18
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases its labor input from 100 units to 121 units, and its capital input from 100 units to 121 units, by how many percentage points will the quantity produced increase?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 19
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue function is given by MR = 200 - 4P, find the price at which the firm's marginal revenue equals its marginal cost.
Correct A. ₦50
B. ₦75
C. ₦100
D. ₦125

Correct Answer: A

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Question 20
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases its labor input from 100 units to 121 units, and its capital input from 100 units to 121 units, by how many percentage points will the quantity produced increase?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 21
A company is considering two marketing strategies: Strategy A involves a large upfront investment in advertising, while Strategy B involves a smaller upfront investment with a longer payback period. Which strategy is more likely to be adopted by a company with a high risk tolerance?
Correct A. Strategy A
B. Strategy B
C. Both strategies are equally likely
D. Neither strategy is likely

Correct Answer: A

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Question 22
A warehouse is using a first-in, first-out (FIFO) inventory management system. If the warehouse receives a new shipment of goods on day 5, and the oldest shipment was received on day 1, what is the probability that the new shipment will be sold before the oldest shipment?
A. 0.5
B. 0.75
Correct C. 0.25
D. 0.1

Correct Answer: C

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Question 23
A company is exporting goods to a foreign country. The company has a 10% chance of losing the shipment due to customs delays. If the company has a 100,000 insurance policy, what is the expected value of the loss?
Correct A. 10,000
B. 20,000
C. 30,000
D. 40,000

Correct Answer: A

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Question 24
A trucking company has a fleet of 10 trucks, each with a capacity of 20 tons. If the company receives an order for 200 tons of goods, what is the probability that the company will be able to fulfill the order without exceeding its capacity?
A. 0.5
Correct B. 0.75
C. 0.25
D. 0.1

Correct Answer: B

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Question 25
A company is considering two transportation options: Option A involves a 2-day journey by truck, while Option B involves a 1-day journey by air. If the company values its time at 1,000 per day, which option is more cost-effective?
A. Option A
Correct B. Option B
C. Both options are equally cost-effective
D. Neither option is cost-effective

Correct Answer: B

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