Practice Post UTME NILE UNIVERSITY commerce 2018 Past Questions

Question 1

A company's sole trader has a warehouse with a capacity of 10,000 units. If the company's average daily sales are 150 units, and the stock level is currently at 8,000 units, what is the minimum number of days the company can sustain its sales rate without replenishing stock?

A. 14 days

B. 21 days

Correct C. 28 days

D. 35 days

Correct Answer: C

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Question 2

A firm exports 80% of its production to foreign markets. If the firm's total production is 10,000 units, and the exchange rate is ₦150 per US dollar, what is the total value of the firm's exports in naira?

A. ₦1,200,000

B. ₦1,500,000

Correct C. ₦1,800,000

D. ₦2,100,000

Correct Answer: C

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Question 3

A bank's current account balance is ₦500,000. If the bank pays out ₦200,000 in withdrawals and receives ₦150,000 in new deposits, what is the new balance?

A. ₦450,000

B. ₦475,000

C. ₦500,000

Correct D. ₦525,000

Correct Answer: D

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Question 4

A sole trader's business has a profit of ₦200,000. If the trader's tax rate is 20%, and the trader's personal income tax is ₦50,000, what is the trader's net profit?

A. ₦150,000

B. ₦175,000

C. ₦200,000

Correct D. ₦225,000

Correct Answer: D

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Question 5

A company's sole trader has a warehouse with a capacity of 10,000 units. If the company's average daily sales are 150 units, and the stock level is currently at 8,000 units, what is the minimum number of days the company can sustain its sales rate without replenishing stock?

A. 14 days

B. 21 days

Correct C. 28 days

D. 35 days

Correct Answer: C

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Question 6

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 7

A company's articles of association can be amended by a

A. Simple Majority

B. Two-Thirds Majority

C. Special Resolution

Correct D. Ordinary Resolution

Correct Answer: D

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Question 8

A warehouse's inventory management system uses the

Correct A. First-In-First-Out (FIFO)

B. Last-In-First-Out (LIFO)

C. Weighted Average Cost (WAC)

D. First-In-Last-Out (FILO)

Correct Answer: A

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Question 9

A bank's cash reserve ratio is

Correct A. The minimum percentage of deposits that must be held in reserve

B. The maximum percentage of deposits that can be lent out

C. The minimum percentage of deposits that can be lent out

D. The maximum percentage of deposits that must be held in reserve

Correct Answer: A

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Question 10

A company's financial statements are audited by a

A. Certified Public Accountant (CPA)

B. Chartered Accountant (CA)

C. Chartered Institute of Bankers (CIB)

Correct D. Institute of Chartered Accountants of Nigeria (ICAN)

Correct Answer: D

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Question 11

In a sole proprietorship business, what is the primary advantage of limited liability?

A. Increased tax benefits

Correct B. Reduced financial risk for owners

C. Improved business reputation

D. Enhanced marketing capabilities

Correct Answer: B

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Question 12

A company has a capital structure consisting of 60% debt and 40% equity. If the cost of debt is 8% and the cost of equity is 12%, what is the weighted average cost of capital (WACC)?

A. 6%

Correct B. 7%

C. 8%

D. 9%

Correct Answer: B

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Question 13

A firm 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 firm needs to transport goods for 300 kilometers, what is the total cost of transportation by road and rail?

A. ₦45,000

Correct B. ₦45,000

C. ₦45,000

D. ₦45,000

Correct Answer: B

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Question 14

A bank has a reserve requirement of 10% and a cash reserve of ₦100,000. If the bank's deposits are ₦1,000,000, what is the maximum amount of loans the bank can make?

A. ₦900,000

Correct B. ₦900,000

C. ₦900,000

D. ₦900,000

Correct Answer: B

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Question 15

A firm is considering two different production processes: process A and process B. Process A requires an initial investment of ₦1,000,000 and generates a profit of ₦200,000 per year. Process B requires an initial investment of ₦500,000 and generates a profit of ₦300,000 per year. If the firm has a cost of capital of 10%, which process should the firm choose?

A. Process A

Correct B. Process B

C. Process A

D. Process B

Correct Answer: B

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Question 16

In a sole trade business, what is the primary advantage of using a sole trader structure?

A. Limited liability

B. Tax benefits

Correct C. Flexibility in decision-making

D. Easy to set up

Correct Answer: C

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Question 17

A company is considering entering the foreign market through exportation. What is the primary advantage of exporting?

A. Increased market share

B. Reduced production costs

Correct C. Access to new markets and customers

D. Improved brand image

Correct Answer: C

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Question 18

A marketing manager is developing a marketing strategy for a new product. What is the primary goal of market segmentation?

Correct A. To identify the target market

B. To differentiate the product from competitors

C. To increase market share

D. To reduce production costs

Correct Answer: A

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Question 19

A consumer is considering purchasing a product online. What is the primary advantage of online shopping?

Correct A. Convenience

B. Wide selection of products

C. Competitive pricing

D. Personalized customer service

Correct Answer: A

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Question 20

A company is considering implementing a new business law. What is the primary advantage of having a clear business law?

A. Increased efficiency

B. Improved customer satisfaction

Correct C. Reduced risk of legal disputes

D. Enhanced reputation

Correct Answer: C

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Question 21

A company's marketing strategy involves creating a new product line to target a specific demographic. However, the production costs are high, and the company is concerned about the potential loss if the product does not sell well. Which of the following insurance products would best mitigate this risk?

A. Product Liability Insurance

B. Business Interruption Insurance

C. Key Person Insurance

Correct D. Contingency Insurance

Correct Answer: D

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Question 22

A firm is considering exporting its products to a foreign market. However, the firm is concerned about the potential risks associated with international trade, including political instability, currency fluctuations, and cultural differences. Which of the following strategies would best mitigate these risks?

A. Diversification

B. Risk Management

C. Market Research

Correct D. Export Insurance

Correct Answer: D

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Question 23

A consumer purchases a product online, but upon receiving it, discovers that it is defective. The consumer contacts the company's customer service department, but the company refuses to provide a refund or replacement. Which of the following laws would best protect the consumer's rights in this situation?

Correct A. Consumer Protection Act

B. Sales of Goods Act

C. Unfair Contract Terms Act

D. Distance Selling Regulations

Correct Answer: A

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Question 24

A company is considering investing in a new production facility. However, the company is concerned about the potential risks associated with the investment, including market fluctuations, regulatory changes, and technological obsolescence. Which of the following strategies would best mitigate these risks?

A. Diversification

B. Risk Management

C. Market Research

Correct D. Strategic Planning

Correct Answer: D

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Question 25

A firm is considering entering a new market. However, the firm is concerned about the potential risks associated with market entry, including cultural differences, language barriers, and regulatory requirements. Which of the following strategies would best mitigate these risks?

Correct A. Market Research

B. Risk Management

C. Strategic Planning

D. Export Insurance

Correct Answer: A

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