POST UTME GREENFIELD UNIVERSITY 2018 Commerce | Objective

Are you preparing for POST UTME GREENFIELD UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity of a product in this market?
Correct A. ₦1000 and 100 units
B. ₦500 and 200 units
C. ₦2000 and 50 units
D. ₦1500 and 75 units

Correct Answer: A

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Question 2
A company's sole trader has a turnover of ₦1,500,000 and a profit of ₦250,000. What is the sole trader's profit margin?
Correct A. 16.67%
B. 20%
C. 25%
D. 30%

Correct Answer: A

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Question 3
A consumer protection agency has the following complaint statistics for a company: 20 complaints about product quality, 15 complaints about customer service, and 10 complaints about pricing. What is the total number of complaints?
Correct A. 45
B. 50
C. 55
D. 60

Correct Answer: A

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Question 4
A company's marketing strategy involves a 10% discount for the first 100 customers, a 15% discount for the next 200 customers, and a 20% discount for all subsequent customers. If the company sells 500 units, what is the total revenue?
Correct A. ₦1,200,000
B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000

Correct Answer: A

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Question 5
A company's sole trader has a turnover of ₦2,000,000 and a profit of ₦300,000. What is the sole trader's profit margin?
Correct A. 15%
B. 20%
C. 25%
D. 30%

Correct Answer: A

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Question 6
A company is considering the introduction of a new product line. The product requires an initial investment of ₦5 million and has a projected annual profit of ₦2 million. If the company's cost of capital is 10% per annum, what is the internal rate of return (IRR) on the investment?
A. 15%
B. 12%
Correct C. 10%
D. 8%

Correct Answer: C

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Question 7
A firm is considering the purchase of a new machine that will cost ₦1.5 million. The machine is expected to last for 5 years and will generate annual savings of ₦300,000. If the firm's cost of capital is 12% per annum, what is the net present value (NPV) of the investment?
Correct A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000

Correct Answer: A

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Question 8
A company is considering the introduction of a new product line. The product requires an initial investment of ₦3 million and has a projected annual profit of ₦1.5 million. If the company's cost of capital is 15% per annum, what is the payback period of the investment?
A. 2 years
Correct B. 3 years
C. 4 years
D. 5 years

Correct Answer: B

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Question 9
A firm is considering the purchase of a new machine that will cost ₦2 million. The machine is expected to last for 3 years and will generate annual savings of ₦400,000. If the firm's cost of capital is 10% per annum, what is the return on investment (ROI) on the investment?
A. 20%
B. 25%
Correct C. 30%
D. 35%

Correct Answer: C

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Question 10
A company is considering the introduction of a new product line. The product requires an initial investment of ₦4 million and has a projected annual profit of ₦2.5 million. If the company's cost of capital is 12% per annum, what is the internal rate of return (IRR) on the investment?
A. 18%
B. 20%
Correct C. 22%
D. 25%

Correct Answer: C

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Question 11
A company is sued for violating the Consumer Protection Act. The company's defense is that the consumer failed to read the fine print on the contract. Which of the following is the most likely outcome?
A. The court will rule in favor of the company.
B. The court will rule in favor of the consumer.
C. The case will be dismissed due to lack of evidence.
Correct D. The company will be ordered to pay damages to the consumer.

Correct Answer: D

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Question 12
A warehouse manager wants to optimize storage space. Which of the following storage methods is most efficient?
A. First-In-First-Out (FIFO)
B. Last-In-First-Out (LIFO)
C. First-In-Last-Out (FILO)
Correct D. Least Recently Used (LRU)

Correct Answer: D

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Question 13
A company purchases an insurance policy to cover losses due to natural disasters. Which of the following types of insurance is most relevant?
A. Liability insurance
Correct B. Property insurance
C. Business interruption insurance
D. Workers' compensation insurance

Correct Answer: B

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Question 14
A bank offers a loan with an interest rate of 10% per annum compounded annually. If the principal amount is ₦100,000, how much will be the amount after 5 years?
Correct A. ₦163,922.89
B. ₦164,922.89
C. ₦165,922.89
D. ₦166,922.89

Correct Answer: A

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Question 15
A sole trader wants to expand their business by hiring employees. Which of the following is the most significant advantage of incorporating as a company?
Correct A. Limited liability
B. Tax benefits
C. Increased funding options
D. Improved management structure

Correct Answer: A

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Question 16
A sole trader's business is not required to register with the Corporate Affairs Commission (CAC) if its annual turnover is less than ₦5 million. Which of the following is a consequence of this requirement?
A. The sole trader is exempt from paying taxes.
Correct B. The sole trader is not required to file annual returns.
C. The sole trader is not liable for any business debts.
D. The sole trader is not required to register for a tax identification number.

Correct Answer: B

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Question 17
A company's articles of association may provide for the appointment of a managing director. What is the primary responsibility of the managing director?
Correct A. To manage the company's day-to-day operations.
B. To oversee the company's financial transactions.
C. To represent the company in legal matters.
D. To appoint and remove directors.

Correct Answer: A

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Question 18
A consumer purchases a product with a 2-year warranty. If the product fails within the warranty period, the consumer is entitled to a replacement or refund. What is the primary purpose of the warranty?
A. To provide a guarantee of the product's quality.
Correct B. To protect the consumer from defects in the product.
C. To provide a refund or replacement for the product.
D. To promote the sale of the product.

Correct Answer: B

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Question 19
A company's directors are personally liable for any debts incurred by the company if they have not been paid. What is the primary responsibility of the directors?
A. To manage the company's day-to-day operations.
B. To oversee the company's financial transactions.
Correct C. To ensure that the company's debts are paid.
D. To appoint and remove directors.

Correct Answer: C

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Question 20
A consumer purchases a product online and receives a defective product. The consumer is entitled to a refund or replacement. What is the primary purpose of the consumer protection law?
Correct A. To protect the consumer from defective products.
B. To promote the sale of products online.
C. To provide a guarantee of the product's quality.
D. To ensure that consumers are aware of their rights.

Correct Answer: A

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Question 21
The Central Bank of Nigeria (CBN) uses the following monetary policy tools to control inflation: Open Market Operations (OMO), Reserve Requirements, and Moral Suasion. Which of the following is NOT a monetary policy tool used by the CBN?
Correct A. Fiscal Policy
B. Monetary Policy
C. Supply-Side Policy
D. Demand-Side Policy

Correct Answer: A

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Question 22
A firm produces 100 units of a good with a fixed cost of ₦10,000 and a variable cost of ₦50 per unit. If the selling price is ₦75 per unit, what is the profit per unit?
A. ₦25
B. ₦30
Correct C. ₦35
D. ₦40

Correct Answer: C

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Question 23
The following diagram shows the demand and supply curves for a product. What is the equilibrium price and quantity?
Correct A. ₦100, 50 units
B. ₦120, 60 units
C. ₦150, 70 units
D. ₦180, 80 units

Correct Answer: A

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Question 24
A company has a 10% dividend yield and a current stock price of ₦100. What is the expected dividend per share?
A. ₦10
Correct B. ₦12
C. ₦15
D. ₦18

Correct Answer: B

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Question 25
A firm has a production function Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm wants to produce 100 units of output, how many units of labor and capital are required?
A. L = 25, K = 25
Correct B. L = 50, K = 50
C. L = 100, K = 100
D. L = 200, K = 200

Correct Answer: B

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