POST UTME NILE UNIVERSITY 2019 Commerce | Objective

Are you preparing for POST UTME NILE UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
A company's sole trader has a business income of ₦250,000 and expenses of ₦180,000. Calculate the sole trader's profit before tax.
Correct A. ₦70,000
B. ₦80,000
C. ₦90,000
D. ₦100,000

Correct Answer: A

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Question 2
A consumer protection agency has identified a company's advertisement as misleading. The company's advertisement claims that their product can cure a disease, but the product has not been scientifically proven to do so. Which of the following is a consequence of the company's actions?
Correct A. The company may face a lawsuit from the consumer protection agency.
B. The company may be fined by the regulatory body.
C. The company's advertisement may be banned.
D. The company's product may be recalled.

Correct Answer: A

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Question 3
A company's sole trader has a business income of ₦300,000 and expenses of ₦220,000. Calculate the sole trader's profit before tax.
Correct A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000

Correct Answer: A

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Question 4
A company's sole trader has a business income of ₦400,000 and expenses of ₦280,000. Calculate the sole trader's profit before tax.
Correct A. ₦120,000
B. ₦130,000
C. ₦140,000
D. ₦150,000

Correct Answer: A

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Question 5
A company's sole trader has a business income of ₦500,000 and expenses of ₦380,000. Calculate the sole trader's profit before tax.
Correct A. ₦120,000
B. ₦130,000
C. ₦140,000
D. ₦150,000

Correct Answer: A

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Question 6
A company specializes in producing high-quality leather goods. It has a production line that can produce 500 units of handbags per day. However, due to high demand, the company wants to increase production by 20% without changing the production line's capacity. Calculate the new daily production target.
A. 525 units
B. 600 units
Correct C. 625 units
D. 700 units

Correct Answer: C

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Question 7
A sole trader, Mr. Ade, sells goods worth ₦250,000 in a month. His expenses are 20% of the sales value. Calculate the profit made by Mr. Ade.
A. ₦50,000
B. ₦60,000
Correct C. ₦62,500
D. ₦65,000

Correct Answer: C

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Question 8
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,500,000, and the total cost of goods sold is ₦1,200,000. Calculate the cost of goods sold using the weighted average method.
A. ₦1,100,000
Correct B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000

Correct Answer: B

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Question 9
A company has a production capacity of 10,000 units per month. It sells 8,000 units at ₦200 per unit and 2,000 units at ₦300 per unit. Calculate the total revenue.
A. ₦2,400,000
B. ₦2,600,000
Correct C. ₦2,800,000
D. ₦3,000,000

Correct Answer: C

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Question 10
A company uses the FIFO method to value its inventory. The cost of goods available for sale is ₦1,500,000, and the total cost of goods sold is ₦1,200,000. Calculate the cost of goods sold using the FIFO method.
A. ₦1,100,000
Correct B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000

Correct Answer: B

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Question 11
The Consumer Protection Act of 1999 provides for the protection of consumers from unfair trade practices. Which of the following is NOT a provision of the Act?
A. Prohibition of unfair trade practices
B. Establishment of the Consumer Protection Council
C. Compensation for consumers who suffer loss or injury
Correct D. Granting of monopolies to businesses

Correct Answer: D

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Question 12
A company's warehouse is stocked with goods worth ₦10 million. The goods are insured against theft and damage. What is the purpose of the insurance policy?
Correct A. To protect the company against financial loss
B. To provide employment opportunities for the company's employees
C. To increase the company's revenue
D. To reduce the company's operating costs

Correct Answer: A

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Question 13
A business organization is considering the use of a just-in-time inventory system. What are the benefits of this system?
Correct A. Reduced inventory costs, improved product quality, and increased customer satisfaction
B. Increased inventory costs, reduced product quality, and decreased customer satisfaction
C. No change in inventory costs, product quality, or customer satisfaction
D. Reduced inventory costs, decreased product quality, and decreased customer satisfaction

Correct Answer: A

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Question 14
A company is considering the use of a marketing strategy that involves creating a new product to appeal to a specific segment of the market. What is the purpose of this strategy?
A. To increase the company's market share
B. To reduce the company's costs
C. To improve the company's product quality
Correct D. To appeal to a specific segment of the market

Correct Answer: D

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Question 15
A business organization is considering the use of a risk management strategy that involves transferring risk to a third party. What is the purpose of this strategy?
A. To reduce the company's risk exposure
B. To increase the company's risk exposure
Correct C. To transfer the risk to a third party
D. To reduce the company's costs

Correct Answer: C

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Question 16
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 the product?
A. ₦100, 100 units
Correct B. ₦120, 80 units
C. ₦150, 60 units
D. ₦180, 40 units

Correct Answer: B

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Question 17
A company has a production function Q = 2L^0.5K^0.5, where L is labor and K is capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the optimal level of labor and capital?
A. L = 10, K = 20
B. L = 20, K = 10
Correct C. L = 15, K = 15
D. L = 25, K = 5

Correct Answer: C

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Question 18
A firm has a cost function C = 2L + 3K, where L is labor and K is capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the minimum cost of producing 100 units of output?
A. ₦5000
Correct B. ₦6000
C. ₦7000
D. ₦8000

Correct Answer: B

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Question 19
A company has a revenue function R = 200Q - 2Q^2, where Q is the quantity sold. What is the maximum revenue?
A. ₦4000
Correct B. ₦5000
C. ₦6000
D. ₦7000

Correct Answer: B

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Question 20
A firm has a production function Q = 2L^0.5K^0.5, where L is labor and K is capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the optimal level of labor and capital?
A. L = 10, K = 20
B. L = 20, K = 10
Correct C. L = 15, K = 15
D. L = 25, K = 5

Correct Answer: C

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Question 21
In a sole trader business, what is the primary advantage of using a separate business bank account?
Correct A. Easy accounting and tax compliance
B. Increased business credibility
C. Improved cash flow management
D. Enhanced business risk management

Correct Answer: A

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Question 22
A company has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. If the company issues 20,000 shares at a premium of ₦5 per share, what is the total amount received from the issue of shares?
A. ₦200,000
Correct B. ₦250,000
C. ₦300,000
D. ₦350,000

Correct Answer: B

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Question 23
A consumer purchases a product with a recommended retail price of ₦5,000. If the consumer is offered a discount of 10% and a cashback of 5%, what is the final amount paid by the consumer?
A. ₦4,250
Correct B. ₦4,375
C. ₦4,500
D. ₦4,625

Correct Answer: B

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Question 24
A company has a policy of paying its employees a bonus of 10% of their annual salary. If an employee earns an annual salary of ₦500,000, what is the bonus paid to the employee?
A. ₦50,000
Correct B. ₦55,000
C. ₦60,000
D. ₦65,000

Correct Answer: B

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Question 25
A company has a market share of 30% in the industry. If the company wants to increase its market share by 5%, what is the new market share?
A. 35%
Correct B. 40%
C. 45%
D. 50%

Correct Answer: B

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