POST UTME DELSU 2020 Commerce | Objective

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Question 1 View Details
A company's financial statements for the year ended December 31, 2020, showed a net profit of ₦120 million. However, the company's auditor discovered that the company had understated its expenses by ₦30 million. What is the correct net profit for the year?
A. ₦150 million
Correct B. ₦180 million
C. ₦120 million
D. ₦90 million

Correct Answer: B

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Question 2 View Details
A firm's marketing strategy involves a 20% discount on all products sold during a promotional period. If a product originally costs ₦500, what is the selling price during the promotional period?
Correct A. ₦400
B. ₦450
C. ₦500
D. ₦550

Correct Answer: A

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Question 3 View Details
A company's cash flow statement for the year ended December 31, 2020, showed a net cash inflow of ₦150 million. However, the company's auditor discovered that the company had overstated its cash inflows by ₦20 million. What is the correct net cash inflow for the year?
Correct A. ₦130 million
B. ₦170 million
C. ₦150 million
D. ₦190 million

Correct Answer: A

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Question 4 View Details
A firm's marketing strategy involves a 15% increase in the price of all products sold during a promotional period. If a product originally costs ₦400, what is the selling price during the promotional period?
Correct A. ₦460
B. ₦440
C. ₦400
D. ₦380

Correct Answer: A

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Question 5 View Details
A company's financial statements for the year ended December 31, 2020, showed a net profit of ₦180 million. However, the company's auditor discovered that the company had understated its expenses by ₦15 million. What is the correct net profit for the year?
Correct A. ₦195 million
B. ₦185 million
C. ₦180 million
D. ₦175 million

Correct Answer: A

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Question 6 View Details
A sole trader's business is considered a separate legal entity from its owner. Discuss this statement with reference to the concept of limited liability.
A. True
Correct B. False
C. Partially True
D. Depends on the jurisdiction

Correct Answer: B

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Question 7 View Details
A company's memorandum of association is a document that outlines the company's constitution and the rights and duties of its members. Discuss the importance of this document in the context of company law.
A. It outlines the company's objectives and powers
Correct B. It outlines the company's constitution and the rights and duties of its members
C. It outlines the company's management structure and decision-making processes
D. It outlines the company's financial structure and funding arrangements

Correct Answer: B

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Question 8 View Details
A warehouse is a facility used for storing goods and merchandise. Discuss the importance of warehouse management in the context of supply chain management.
A. It ensures that goods are stored safely and securely
B. It ensures that goods are stored efficiently and effectively
C. It ensures that goods are stored in a way that minimizes damage and deterioration
Correct D. All of the above

Correct Answer: D

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Question 9 View Details
A consumer protection law is a law that protects consumers from unfair or deceptive business practices. Discuss the importance of consumer protection laws in the context of business and commerce.
A. It ensures that businesses operate fairly and transparently
B. It ensures that consumers are protected from unfair or deceptive business practices
C. It ensures that businesses are held accountable for their actions
Correct D. All of the above

Correct Answer: D

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Question 10 View Details
A production process is a series of activities that are used to create a product or service. Discuss the importance of production processes in the context of business and commerce.
A. It ensures that products are created efficiently and effectively
B. It ensures that products are created in a way that minimizes waste and maximizes quality
C. It ensures that products are created in a way that meets customer needs and expectations
Correct D. All of the above

Correct Answer: D

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Question 11 View Details
A company's marketing strategy involves creating a sense of urgency among its customers. This is an example of which of the following marketing tactics?
A. Scarcity
B. Exclusivity
C. Social Proof
Correct D. Sense of Urgency

Correct Answer: D

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Question 12 View Details
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to increase its output by 20% while keeping the labor input constant, how much should it increase its capital input?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 13 View Details
A consumer has a budget of ₦10,000 and wants to buy two goods, X and Y. The prices of X and Y are ₦2,000 and ₦3,000 respectively. If the consumer spends all her budget on these two goods, what is the maximum amount she can spend on good X?
A. ₦4,000
Correct B. ₦5,000
C. ₦6,000
D. ₦7,000

Correct Answer: B

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Question 14 View Details
A firm's cost function is given by C = 2L + 3K. If the firm wants to minimize its costs while producing 100 units of output, how many units of labor should it hire?
A. 20
Correct B. 30
C. 40
D. 50

Correct Answer: B

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Question 15 View Details
A consumer has a utility function given by U = 2X + 3Y. If the prices of X and Y are ₦2,000 and ₦3,000 respectively, and the consumer has a budget of ₦10,000, what is the maximum amount of utility she can achieve?
A. ₦6,000
B. ₦7,000
Correct C. ₦8,000
D. ₦9,000

Correct Answer: C

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Question 16 View Details
A warehouse manager wants to optimize storage space by rearranging shelves. If the current arrangement has 15 shelves with 8 crates each, and the manager wants to rearrange them into 20 shelves with x crates each, what is the value of x?
A. 6
Correct B. 8
C. 10
D. 12

Correct Answer: B

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Question 17 View Details
A company has a warehouse with a capacity to store 5000 crates. If the company receives 3000 crates of goods and wants to store them in a way that maximizes storage space, what is the minimum number of shelves needed?
A. 10
B. 12
Correct C. 15
D. 18

Correct Answer: C

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Question 18 View Details
A transport company wants to transport goods from Lagos to Abuja. If the distance between the two cities is 700km and the company's truck can travel at an average speed of 60km/h, what is the total cost of transportation if the company pays ₦1.50 per km?
A. ₦1050
B. ₦1055
Correct C. ₦1060
D. ₦1065

Correct Answer: C

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Question 19 View Details
A bank wants to calculate the interest on a loan of ₦500,000 for 2 years at an interest rate of 10% per annum. If the interest is compounded annually, what is the total amount to be paid after 2 years?
A. ₦550,000
B. ₦560,000
Correct C. ₦570,000
D. ₦580,000

Correct Answer: C

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Question 20 View Details
A company wants to advertise its new product on television. If the company pays ₦500,000 for a 30-second commercial and the commercial is shown 5 times a day for 30 days, what is the total cost of advertising?
A. ₦7,500,000
B. ₦7,600,000
Correct C. ₦7,700,000
D. ₦7,800,000

Correct Answer: C

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Question 21 View Details
A company's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. Which of the following is a characteristic of a USP?
Correct A. It is a statement that highlights the product's features and benefits
B. It is a statement that emphasizes the product's price
C. It is a statement that focuses on the product's quality
D. It is a statement that compares the product to a competitor's product

Correct Answer: A

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Question 22 View Details
A sole trader's business is registered with the Corporate Affairs Commission (CAC). What is the primary advantage of registering a sole trader's business?
A. It provides limited liability protection for the owner
Correct B. It allows the business to operate under a different name
C. It provides tax benefits for the owner
D. It allows the business to issue shares to investors

Correct Answer: B

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Question 23 View Details
A company's financial statements are prepared in accordance with the Generally Accepted Accounting Principles (GAAP). What is the primary purpose of GAAP?
Correct A. To provide a framework for financial reporting
B. To ensure compliance with tax laws
C. To provide a basis for auditing financial statements
D. To provide a basis for financial analysis

Correct Answer: A

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Question 24 View Details
A bank's primary function is to act as a financial intermediary between savers and borrowers. What is the primary benefit of using a bank?
A. It provides a safe and secure place to store money
B. It allows individuals to borrow money at a low interest rate
C. It provides a platform for individuals to invest in securities
Correct D. It allows individuals to access credit facilities quickly

Correct Answer: D

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Question 25 View Details
A company's marketing strategy involves creating a brand identity that differentiates it from competitors. Which of the following is a characteristic of a brand identity?
A. It is a statement that highlights the product's features and benefits
B. It is a statement that emphasizes the product's price
C. It is a statement that focuses on the product's quality
Correct D. It is a statement that compares the product to a competitor's product

Correct Answer: D

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