POST UTME IGBINEDION UNIVERSITY 2024 Commerce | Objective

Are you preparing for POST UTME IGBINEDION UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2024 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
A company is considering a new marketing strategy that involves partnering with a popular social media influencer. The influencer has a large following and is known for promoting products that align with the company's target audience. However, the influencer's fees are high, and the company is unsure if the partnership will generate sufficient returns on investment. What type of risk is the company facing?
A. Financial risk
B. Reputation risk
C. Operational risk
Correct D. Strategic risk

Correct Answer: D

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Question 2
A consumer purchases a product online and receives a damaged item. The consumer contacts the company's customer service department, but the representative is unhelpful and dismissive. What type of consumer protection law is the consumer likely to invoke?
A. Consumer Rights Act
Correct B. Sale of Goods Act
C. Unfair Contract Terms Act
D. Distance Selling Regulations

Correct Answer: B

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Question 3
A bank offers a credit card with a 0% interest rate for the first 6 months. After the promotional period ends, the interest rate increases to 20%. What type of interest rate is the bank offering?
A. Fixed interest rate
B. Variable interest rate
Correct C. Introductory interest rate
D. Tiered interest rate

Correct Answer: C

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Question 4
A company is considering a new business strategy that involves outsourcing its manufacturing operations to a low-cost country. What type of risk is the company facing?
A. Financial risk
B. Reputation risk
C. Operational risk
Correct D. Strategic risk

Correct Answer: D

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Question 5
A consumer purchases a product online and is charged an additional fee for shipping. The consumer is not aware of the fee and feels that it is unfair. What type of consumer protection law is the consumer likely to invoke?
A. Consumer Rights Act
B. Sale of Goods Act
C. Unfair Contract Terms Act
Correct D. Distance Selling Regulations

Correct Answer: D

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Question 6
In a perfectly competitive market, the demand curve for a firm's product is its
Correct A. marginal revenue curve
B. marginal cost curve
C. average revenue curve
D. average cost curve

Correct Answer: A

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Question 7
A company's break-even point is the point at which its
A. total revenue equals its fixed costs
B. total revenue equals its variable costs
Correct C. total revenue equals its total costs
D. total revenue equals its contribution margin

Correct Answer: C

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Question 8
A sole trader's business is not a separate legal entity from its owner, but it can be
A. liable for unlimited personal liability
B. liable for unlimited business liability
C. liable for limited personal liability
Correct D. liable for limited business liability

Correct Answer: D

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Question 9
A company's financial statements are prepared in accordance with the
Correct A. Generally Accepted Accounting Principles (GAAP)
B. International Financial Reporting Standards (IFRS)
C. Financial Accounting Standards Board (FASB)
D. Securities and Exchange Commission (SEC)

Correct Answer: A

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Question 10
A business can be insured against risks such as
A. fire, theft, and liability
B. natural disasters, cyber attacks, and terrorism
C. business interruption, product recall, and intellectual property theft
Correct D. all of the above

Correct Answer: D

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Question 11
A sole trader's business is registered under which of the following?
A. Partnership
B. Company
Correct C. Sole Trader
D. Limited Liability Partnership

Correct Answer: C

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Question 12
The diagram below represents a production function. If the firm is producing at point A, what is the opportunity cost of producing one more unit of output?
A. ₦100
Correct B. ₦200
C. ₦500
D. ₦1000

Correct Answer: B

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Question 13
A company's financial statements are audited by an independent auditor. What is the primary purpose of this audit?
Correct A. To verify the company's financial statements
B. To provide an opinion on the company's financial health
C. To identify areas for improvement in the company's financial management
D. To provide a guarantee that the company's financial statements are accurate

Correct Answer: A

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Question 14
A firm is considering investing in a new project. The project has a net present value (NPV) of ₦100,000 and a payback period of 5 years. What is the opportunity cost of investing in this project?
A. ₦50,000
Correct B. ₦100,000
C. ₦150,000
D. ₦200,000

Correct Answer: B

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Question 15
A company is considering exporting its products to a foreign market. What is the primary advantage of exporting?
A. Increased revenue
B. Reduced competition
C. Improved brand image
Correct D. Access to new markets

Correct Answer: D

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Question 16
A sole trader's business is considered a separate legal entity from its owner. Which of the following is a characteristic of a sole trader's business?
A. Unlimited liability
B. Separate legal entity
C. No partnership
Correct D. No limited liability

Correct Answer: D

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Question 17
A company's articles of association can be amended by a majority vote of the shareholders. Which of the following is a characteristic of a company's articles of association?
Correct A. Can be amended by a majority vote of the shareholders
B. Cannot be amended by a majority vote of the shareholders
C. Must be approved by the government
D. Must be approved by the company's board of directors

Correct Answer: A

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Question 18
A marketing strategy that focuses on creating a unique selling proposition (USP) is known as?
A. Segmentation
B. Targeting
C. Positioning
Correct D. Differentiation

Correct Answer: D

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Question 19
A production process that involves the transformation of raw materials into finished goods is known as?
Correct A. Manufacturing
B. Crafting
C. Assembling
D. Packaging

Correct Answer: A

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Question 20
A bank's primary function is to act as a financial intermediary between savers and borrowers. Which of the following is a characteristic of a bank's primary function?
Correct A. To act as a financial intermediary between savers and borrowers
B. To provide loans to customers
C. To accept deposits from customers
D. To invest in securities

Correct Answer: A

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Question 21
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will
A. increase
Correct B. decrease
C. remain constant
D. shift to the left

Correct Answer: B

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Question 22
A company's financial statements show that its current ratio is 2.5, its debt-to-equity ratio is 0.8, and its return on equity is 12%. What can be inferred about the company's financial health?
Correct A. The company is financially healthy and has a strong ability to pay its debts.
B. The company is financially distressed and has a high risk of default.
C. The company's financial health is uncertain and requires further analysis.
D. The company's financial health is not relevant to its ability to pay its debts.

Correct Answer: A

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Question 23
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital. If the firm wants to produce 100 units of output, how many labor hours and capital units should it use?
A. L = 100, K = 100
B. L = 400, K = 400
Correct C. L = 1600, K = 1600
D. L = 6400, K = 6400

Correct Answer: C

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Question 24
A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300, respectively. If the consumer's indifference curves are convex to the origin, what is the optimal bundle of goods that the consumer will choose?
A. A = 2, B = 3
Correct B. A = 3, B = 2
C. A = 4, B = 1
D. A = 1, B = 4

Correct Answer: B

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Question 25
A firm's revenue function is given by R = 2x^2 + 5x + 3, where x is the quantity sold. If the firm wants to maximize its revenue, how many units should it produce?
A. x = 1
B. x = 2
Correct C. x = 3
D. x = 4

Correct Answer: C

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