POST UTME NILE UNIVERSITY 2021 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 2021 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
In a sole trader business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Easy to set up
Correct C. Flexibility in decision-making
D. No tax implications

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A company is considering a new marketing strategy to increase sales. Which of the following marketing strategies is most likely to increase sales?
A. Product differentiation
B. Segmentation
C. Target marketing
Correct D. Positioning

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A consumer protection law requires that all businesses must provide a clear and concise warranty to their customers. What is the primary purpose of this warranty?
A. To protect the business from liability
Correct B. To provide a clear understanding of the product's features
C. To ensure customer satisfaction
D. To promote the business's brand

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company is considering a new business venture in a foreign country. What is the primary factor that the company should consider before making a decision?
A. Market size and growth rate
B. Competition and market share
C. Government regulations and policies
Correct D. Cultural and social factors

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A sole trader business is considering the use of a limited company structure. What is the primary advantage of using a limited company structure?
Correct A. Limited liability
B. Easy to set up
C. Flexibility in decision-making
D. No tax implications

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a correct statement about the registration?
A. The sole trader must have a minimum of two directors.
Correct B. The sole trader must have a minimum of one director.
C. The sole trader must have a minimum of three directors.
D. The sole trader must have a minimum of four directors.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A company has a capital of ₦1,000,000, divided into 10,000 shares of ₦100 each. If the company issues 5,000 shares at a premium of ₦20 per share, what is the total amount received from the issue of shares?
A. ₦500,000
Correct B. ₦600,000
C. ₦700,000
D. ₦800,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A warehouse has a capacity of 10,000 square meters. If the warehouse is currently occupied by 5,000 square meters of goods, what is the percentage of the warehouse that is occupied?
A. 25%
B. 30%
Correct C. 50%
D. 75%

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A company has a fleet of 10 vehicles, including 5 cars and 5 trucks. If 2 cars and 3 trucks are involved in an accident, what is the probability that the remaining vehicles will be involved in another accident?
A. 1/3
Correct B. 1/5
C. 2/5
D. 3/5

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A bank has a vault with a capacity of 10,000 kilograms. If the vault is currently occupied by 5,000 kilograms of gold, what is the percentage of the vault that is occupied?
A. 25%
B. 30%
Correct C. 50%
D. 75%

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A firm's decision to export goods to a foreign country is influenced by the following factors EXCEPT
A. Government policies
B. Market demand
C. Transportation costs
Correct D. Technological advancements

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
The diagram below represents a supply and demand curve for a particular commodity. What is the effect of an increase in consumer income on the equilibrium price and quantity?
A. Price increases and quantity decreases
Correct B. Price decreases and quantity increases
C. Price increases and quantity increases
D. Price decreases and quantity decreases

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A company's risk management strategy involves diversification of its investments. What is the primary benefit of this strategy?
Correct A. Reduced risk
B. Increased returns
C. Improved liquidity
D. Enhanced reputation

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A firm's decision to adopt a new technology is influenced by the following factors EXCEPT
A. Cost savings
B. Increased efficiency
C. Government subsidies
Correct D. Market demand

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
The diagram below represents a flowchart for a banking transaction. What is the effect of a bank's decision to increase interest rates on the flowchart?
A. Increased deposits
B. Decreased withdrawals
Correct C. Increased lending
D. Decreased borrowing

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A sole trader's business is considered a separate legal entity from the owner's personal assets. However, in the event of a lawsuit, the owner's personal assets may still be at risk. What is the name of this risk?
Correct A. Unlimited liability
B. Limited liability
C. Joint and several liability
D. Solidarity liability

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
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?
A. To manage the company's day-to-day operations
Correct B. To make strategic decisions on behalf of the company
C. To oversee the company's financial management
D. To represent the company in legal matters

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A bank's primary function is to act as a financial intermediary between savers and borrowers. What is the name of the process by which a bank creates new money?
Correct A. Fractional reserve banking
B. Monetary policy
C. Fiscal policy
D. Crowding out

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A marketing mix is a combination of four key elements that a company uses to promote its products or services. What are the four elements of the marketing mix?
Correct A. Product, price, promotion, and place
B. Product, price, promotion, and people
C. Product, price, promotion, and process
D. Product, price, promotion, and physical evidence

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
An insurance policy is a contract between an insurer and an insured party. What is the primary purpose of an insurance policy?
Correct A. To provide financial protection against losses
B. To provide financial rewards for good behavior
C. To provide financial incentives for investment
D. To provide financial assistance for education

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
In a production process, specialization occurs when a firm focuses on producing a specific product or service, leading to increased efficiency and productivity. What is the primary benefit of specialization in a production process?
A. Increased competition
B. Improved quality control
Correct C. Reduced production costs
D. Increased market share

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A company is considering the introduction of a new product line. The product has a high demand in the market, but the production process is complex and requires significant investment. What is the primary consideration for the company in this scenario?
A. Market demand
B. Production costs
Correct C. Investment required
D. Competitor analysis

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A consumer protection agency has received a complaint about a company's unfair business practices. The agency has gathered evidence of the company's actions and is considering taking legal action. What is the primary goal of the agency in this scenario?
A. To punish the company
B. To protect the consumer's rights
C. To recover losses for the consumer
Correct D. To prevent future unfair practices

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A sole trader has decided to expand their business by hiring employees. What is the primary advantage of this decision?
A. Increased profit margins
B. Improved quality of products
Correct C. Reduced workload for the owner
D. Increased market share

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A company has decided to go public by issuing shares to the public. What is the primary benefit of this decision?
A. Increased ownership by the public
Correct B. Improved liquidity for shareholders
C. Reduced risk for investors
D. Increased market value

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support