Practice Post UTME FUTA commerce 2017 Past Questions

Question 1

In a sole trader business, what is the primary advantage of using a separate business bank account?

Correct A. Separate business and personal finances

B. Increased tax benefits

C. Improved credit rating

D. Enhanced business reputation

Correct Answer: A

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Question 2

A company has a capital structure consisting of 60% equity and 40% debt. If the cost of equity is 12% and the cost of debt is 6%, what is the weighted average cost of capital (WACC)?

A. 8.4%

Correct B. 9.2%

C. 10.8%

D. 12.0%

Correct Answer: B

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Question 3

A warehouse has a storage capacity of 10,000 units. The warehouse is currently 70% full. If 500 units are added to the warehouse, what is the new percentage of capacity?

A. 60%

Correct B. 65%

C. 70%

D. 75%

Correct Answer: B

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Question 4

A company exports 80% of its production to foreign countries. If the company's total production is 100,000 units, how many units are exported?

Correct A. 80,000

B. 90,000

C. 100,000

D. 120,000

Correct Answer: A

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Question 5

A sole trader business has a cash flow statement that shows a net cash inflow of ₦500,000. If the business has a cash balance of ₦200,000 at the beginning of the year, what is the new cash balance?

Correct A. ₦700,000

B. ₦600,000

C. ₦500,000

D. ₦400,000

Correct Answer: A

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Question 6

A firm'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 and quality

C. It is a statement that focuses on the product's design and packaging

D. It is a statement that emphasizes the product's brand name and logo

Correct Answer: A

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Question 7

A company is considering two different modes of transportation for its goods: road and rail. Which of the following is a factor that would influence the choice of transportation mode?

A. The distance between the origin and destination

B. The type of goods being transported

C. The cost of transportation

Correct D. All of the above

Correct Answer: D

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Question 8

A firm's insurance policy covers losses due to fire, theft, and natural disasters. Which of the following is a type of insurance policy?

A. Fire insurance

B. Theft insurance

C. Natural disaster insurance

Correct D. All-risk insurance

Correct Answer: D

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Question 9

A bank's cash management system involves the use of a cash management software to track and manage its cash flows. Which of the following is a benefit of using a cash management software?

A. Improved cash forecasting

B. Reduced cash handling costs

C. Increased cash availability

Correct D. All of the above

Correct Answer: D

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Question 10

A firm's marketing strategy involves creating a brand identity that is consistent across all its marketing channels. Which of the following is a key element of a brand identity?

A. Brand name

B. Brand logo

C. Brand tagline

Correct D. All of the above

Correct Answer: D

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Question 11

The Consumer Protection Act of 1999 provides for the establishment of the Consumer Protection Council. What is the primary function of the Council?

A. To promote consumer awareness and education

B. To investigate consumer complaints and prosecute offenders

C. To regulate consumer transactions and enforce consumer rights

Correct D. To provide consumer protection and advocacy services

Correct Answer: D

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Question 12

A firm produces two goods, X and Y, using two inputs, labor (L) and capital (K). The production function for good X is given by X = 2L + 3K, and the production function for good Y is given by Y = 4L + 2K. If the firm has 10 units of labor and 5 units of capital, how many units of good X will it produce?

A. 20

Correct B. 30

C. 40

D. 50

Correct Answer: B

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Question 13

A company has a policy of paying its employees a bonus of 10% of their salary if they meet their sales targets. If an employee's salary is ₦50,000 and they meet their sales targets, how much bonus will they receive?

A. ₦5,000

Correct B. ₦10,000

C. ₦15,000

D. ₦20,000

Correct Answer: B

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Question 14

A firm has a production function given by Q = 2L^0.5 + 3K^0.5. If the firm has 16 units of labor and 9 units of capital, how many units of output will it produce?

A. 10

B. 15

Correct C. 20

D. 25

Correct Answer: C

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Question 15

A company has a marketing budget of ₦1,000,000. If it allocates 30% of the budget to advertising, 20% to promotions, and 50% to public relations, how much will it spend on public relations?

A. ₦250,000

B. ₦300,000

C. ₦400,000

Correct D. ₦500,000

Correct Answer: D

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Question 16

A firm produces two goods, X and Y, using two inputs, labor (L) and capital (K). The production function for good X is given by X = 2L + 3K, and the production function for good Y is given by Y = 4L + 2K. If the firm has 10 units of labor and 5 units of capital, how many units of good Y will it produce?

Correct A. 20

B. 30

C. 40

D. 50

Correct Answer: A

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Question 17

A company has a policy of paying its employees a bonus of 10% of their salary if they meet their sales targets. If an employee's salary is ₦50,000 and they meet their sales targets, how much bonus will they receive?

A. ₦5,000

Correct B. ₦10,000

C. ₦15,000

D. ₦20,000

Correct Answer: B

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Question 18

A firm has a production function given by Q = 2L^0.5 + 3K^0.5. If the firm has 16 units of labor and 9 units of capital, how many units of output will it produce?

A. 10

B. 15

Correct C. 20

D. 25

Correct Answer: C

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Question 19

A company's financial statements show a net income of ₦1,500,000 and a total equity of ₦3,000,000. If the company's debt-to-equity ratio is 0.6, what is the amount of its long-term debt?

A. ₦1,800,000

Correct B. ₦2,400,000

C. ₦1,200,000

D. ₦1,000,000

Correct Answer: B

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Question 20

A sole trader's business is affected by the following factors: high competition, low profit margins, and a high level of uncertainty. Which of the following is the most appropriate business strategy for this sole trader?

A. Diversification

Correct B. Concentration

C. Vertical integration

D. Horizontal integration

Correct Answer: B

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Question 21

A company's marketing mix consists of a product with a high level of quality, a price that is slightly above the average market price, a promotion strategy that focuses on social media advertising, and a distribution channel that involves online sales. What is the primary advantage of this marketing mix?

A. Increased market share

B. Improved brand image

C. Reduced production costs

Correct D. Enhanced customer satisfaction

Correct Answer: D

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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. If the company's debt-to-equity ratio is 0.6, what is the amount of its long-term debt?

A. ₦1,800,000

Correct B. ₦2,400,000

C. ₦1,200,000

D. ₦1,000,000

Correct Answer: B

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Question 23

A company's marketing mix consists of a product with a high level of quality, a price that is slightly above the average market price, a promotion strategy that focuses on social media advertising, and a distribution channel that involves online sales. What is the primary advantage of this marketing mix?

A. Increased market share

B. Improved brand image

C. Reduced production costs

Correct D. Enhanced customer satisfaction

Correct Answer: D

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Question 24

A company's financial statements show a net income of ₦1,500,000 and a total equity of ₦3,000,000. If the company's debt-to-equity ratio is 0.6, what is the amount of its long-term debt?

A. ₦1,800,000

Correct B. ₦2,400,000

C. ₦1,200,000

D. ₦1,000,000

Correct Answer: B

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Question 25

A company's marketing mix consists of a product with a high level of quality, a price that is slightly above the average market price, a promotion strategy that focuses on social media advertising, and a distribution channel that involves online sales. What is the primary advantage of this marketing mix?

A. Increased market share

B. Improved brand image

C. Reduced production costs

Correct D. Enhanced customer satisfaction

Correct Answer: D

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