Practice Post UTME IGBINEDION UNIVERSITY commerce 2017 Past Questions

Question 1

A sole trader's business is registered under which of the following?

A. Partnership

Correct B. Sole Proprietorship

C. Limited Liability Company

D. Cooperative Society

Correct Answer: B

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Question 2

A consumer protection agency is established to protect consumers from which of the following?

A. Unfair business practices

B. False advertising

C. Product liability

Correct D. All of the above

Correct Answer: D

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Question 3

A company's articles of association may be altered by a special resolution passed by which of the following?

A. 75% of the members

B. 50% of the members

Correct C. 2/3 of the members

D. 3/4 of the members

Correct Answer: C

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Question 4

A warehouse is a facility used for storing goods in a controlled environment. Which of the following is a characteristic of a warehouse?

A. It is a place of production

Correct B. It is a place of storage

C. It is a place of transportation

D. It is a place of consumption

Correct Answer: B

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Question 5

A bank's primary function is to act as a financial intermediary between savers and borrowers. Which of the following is a type of financial intermediary?

A. Commercial bank

B. Investment bank

C. Central bank

Correct D. All of the above

Correct Answer: D

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Question 6

A company is considering two different modes of transportation for its goods: road and rail. The cost of transporting goods by road is ₦150 per kilometer, while the cost of transporting goods by rail is ₦120 per kilometer. If the company needs to transport 500 kilometers of goods, what is the total cost of transportation by road and rail respectively?

A. ₦75,000

Correct B. ₦90,000

C. ₦120,000

D. ₦150,000

Correct Answer: B

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Question 7

A sole trader, Mr. A, has a business that generates an average profit of ₦50,000 per month. If he wants to expand his business and increase his profit by 20%, how much additional capital will he need to invest?

A. ₦10,000

Correct B. ₦20,000

C. ₦30,000

D. ₦40,000

Correct Answer: B

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Question 8

A company is considering launching a new product in the market. The company has estimated that the demand for the product will be 500 units per month. If the company wants to produce 10% more than the estimated demand, how many units should it produce per month?

A. 450

B. 500

Correct C. 550

D. 600

Correct Answer: C

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Question 9

A company is considering two different advertising strategies: print and digital. The cost of print advertising is ₦50,000 per month, while the cost of digital advertising is ₦30,000 per month. If the company wants to spend a total of ₦100,000 per month on advertising, what is the maximum amount it can spend on print advertising?

A. ₦20,000

B. ₦30,000

Correct C. ₦40,000

D. ₦50,000

Correct Answer: C

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Question 10

A company is considering two different modes of transportation for its goods: road and rail. The cost of transporting goods by road is ₦150 per kilometer, while the cost of transporting goods by rail is ₦120 per kilometer. If the company needs to transport 500 kilometers of goods, what is the total cost of transportation by road and rail respectively?

A. ₦75,000

Correct B. ₦90,000

C. ₦120,000

D. ₦150,000

Correct Answer: B

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Question 11

A company specializes in producing a single product, which is a type of electronic component. The production process involves several stages, including design, prototyping, and manufacturing. The company uses a just-in-time (JIT) inventory system to manage its stock levels. What is the primary advantage of using a JIT system in this context?

A. Reduced inventory costs

B. Improved product quality

Correct C. Increased production efficiency

D. Enhanced customer satisfaction

Correct Answer: C

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Question 12

A sole trader operates a small retail business, selling a variety of products to customers. The business has a fixed overhead cost of ₦500,000 per month, and the owner's salary is ₦200,000 per month. The business generates revenue from the sale of products, with an average profit margin of 20%. What is the minimum amount of revenue the business must generate each month to break even?

A. ₦1,000,000

Correct B. ₦1,200,000

C. ₦1,500,000

D. ₦2,000,000

Correct Answer: B

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Question 13

A company offers a product warranty that covers defects in materials and workmanship for a period of two years from the date of purchase. The warranty is non-transferable and only applies to the original purchaser. What is the primary purpose of this warranty?

A. To increase customer satisfaction

Correct B. To reduce product returns

C. To enhance product quality

D. To protect the company's reputation

Correct Answer: B

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Question 14

A company uses a marketing strategy that involves creating a sense of urgency among customers to purchase a product. The company offers a limited-time discount and creates a sense of scarcity by limiting the number of products available. What is the primary psychological effect of this marketing strategy?

A. Increased customer loyalty

B. Improved customer satisfaction

Correct C. Enhanced customer anxiety

D. Reduced customer resistance

Correct Answer: C

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Question 15

A company uses a risk management strategy that involves diversifying its investments to minimize potential losses. The company invests in a variety of assets, including stocks, bonds, and real estate. What is the primary benefit of this risk management strategy?

Correct A. Reduced potential losses

B. Increased potential returns

C. Improved investment efficiency

D. Enhanced investment stability

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, and K is the capital. If the company wants to increase its production by 20% while keeping labor constant at 100 units, what percentage increase in capital is required?

A. 10%

B. 20%

Correct C. 30%

D. 40%

Correct Answer: C

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Question 17

A sole trader, Mr. A, has an annual income of ₦500,000 and expenses of ₦200,000. He also has a business loan of ₦300,000 at an interest rate of 10% per annum. If he wants to save ₦100,000 for a new business venture, how much should he pay as interest on the loan?

Correct A. ₦30,000

B. ₦40,000

C. ₦50,000

D. ₦60,000

Correct Answer: A

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Question 18

A company's marketing strategy involves a 20% discount on all products for the first 100 customers. If the original price of each product is ₦500, what is the total revenue for the first 100 customers?

A. ₦40,000

B. ₦45,000

Correct C. ₦50,000

D. ₦55,000

Correct Answer: C

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Question 19

A company's production function is given by Q = 200L^0.7K^0.3, where Q is the quantity produced, L is the labor, and K is the capital. If the company wants to increase its production by 15% while keeping labor constant at 150 units, what percentage increase in capital is required?

A. 5%

B. 10%

Correct C. 15%

D. 20%

Correct Answer: C

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Question 20

A company's marketing strategy involves a 15% discount on all products for the first 50 customers. If the original price of each product is ₦600, what is the total revenue for the first 50 customers?

A. ₦24,000

B. ₦27,000

Correct C. ₦30,000

D. ₦33,000

Correct Answer: C

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Question 21

The concept of 'agency' in consumer protection law refers to the relationship between a consumer and a business. Which of the following best describes the role of an agent in this context?

Correct A. A person who acts on behalf of a consumer to negotiate a contract

B. A person who represents a business in a transaction with a consumer

C. A person who provides information to consumers about a product or service

D. A person who is responsible for enforcing consumer protection laws

Correct Answer: A

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Question 22

A company is considering the introduction of a new product line. Which of the following business units would be most suitable for this venture?

A. Sole Trade

B. Partnership

Correct C. Limited Liability Company

D. Cooperative Society

Correct Answer: C

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Question 23

A consumer has purchased a product that has a defect. Which of the following is the consumer's right under consumer protection law?

A. The right to a refund

Correct B. The right to repair or replacement

C. The right to compensation for damages

D. The right to sue the manufacturer

Correct Answer: B

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Question 24

A company is considering the use of a new marketing strategy. Which of the following would be an example of a 'push' marketing strategy?

Correct A. Advertising

B. Promotions

C. Public Relations

D. Trade Shows

Correct Answer: A

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Question 25

A consumer has been a victim of identity theft. Which of the following is the consumer's right under consumer protection law?

A. The right to a free credit report

B. The right to a security freeze

Correct C. The right to compensation for damages

D. The right to sue the perpetrator

Correct Answer: C

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