Practice Post UTME NILE UNIVERSITY commerce 2025 Past Questions

Question 1

In a warehouse with a storage capacity of 10,000 units, the stock level is currently at 8,000 units. If the rate of stock depletion is 5% per week, and the warehouse manager wants to maintain a safety stock of 20% of the storage capacity, what is the minimum number of units that should be ordered to meet the safety stock requirement?

A. 1,000

B. 2,000

C. 3,000

Correct D. 4,000

Correct Answer: D

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Question 2

A company has two warehouses, A and B, with storage capacities of 5,000 units and 3,000 units, respectively. Warehouse A has a stock level of 4,000 units, and Warehouse B has a stock level of 2,000 units. If the company wants to transfer 1,000 units from Warehouse A to Warehouse B to meet the demand, what is the new stock level of Warehouse A?

Correct A. 3,000

B. 4,000

C. 5,000

D. 6,000

Correct Answer: A

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Question 3

A consumer purchases a product with a price of ₦10,000 and a 10% discount. If the consumer pays ₦9,000, what is the amount of the discount?

Correct A. ₦1,000

B. ₦1,500

C. ₦2,000

D. ₦2,500

Correct Answer: A

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Question 4

A company has a policy of paying its employees a 5% bonus on their annual salary. If an employee earns ₦500,000 per year, what is the amount of the bonus?

Correct A. ₦25,000

B. ₦25,500

C. ₦26,000

D. ₦26,500

Correct Answer: A

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Question 5

A life insurance policy has a premium of ₦50,000 per year. If the policyholder wants to pay the premium in 10 equal installments, what is the amount of each installment?

Correct A. ₦5,000

B. ₦5,500

C. ₦6,000

D. ₦6,500

Correct Answer: A

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Question 6

A company is considering the introduction of a new product line. The marketing manager has identified two potential target markets: Market A and Market B. Market A has a larger population, but Market B has a higher disposable income. Which market segmentation strategy would be most appropriate for this company?

A. Demographic segmentation

B. Geographic segmentation

Correct C. Psychographic segmentation

D. Behavioral segmentation

Correct Answer: C

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Question 7

A sole trader is considering the purchase of a new piece of equipment for their business. The equipment costs ₦200,000 and is expected to last for 5 years. The sole trader expects to save ₦50,000 per year from the use of the equipment. What is the payback period of the equipment?

A. 2 years

Correct B. 3 years

C. 4 years

D. 5 years

Correct Answer: B

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Question 8

A company is considering the introduction of a new product line. The marketing manager has identified two potential target markets: Market A and Market B. Market A has a larger population, but Market B has a higher disposable income. Which market segmentation strategy would be most appropriate for this company?

A. Demographic segmentation

B. Geographic segmentation

Correct C. Psychographic segmentation

D. Behavioral segmentation

Correct Answer: C

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Question 9

A company is considering the introduction of a new product line. The marketing manager has identified two potential target markets: Market A and Market B. Market A has a larger population, but Market B has a higher disposable income. Which market segmentation strategy would be most appropriate for this company?

A. Demographic segmentation

B. Geographic segmentation

Correct C. Psychographic segmentation

D. Behavioral segmentation

Correct Answer: C

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Question 10

A company is considering the introduction of a new product line. The marketing manager has identified two potential target markets: Market A and Market B. Market A has a larger population, but Market B has a higher disposable income. Which market segmentation strategy would be most appropriate for this company?

A. Demographic segmentation

B. Geographic segmentation

Correct C. Psychographic segmentation

D. Behavioral segmentation

Correct Answer: C

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Question 11

The Consumer Protection Act of 1999 in Nigeria provides for the establishment of the Consumer Protection Council. What is the primary function of the Consumer Protection Council?

A. To promote consumer awareness and education

Correct B. To investigate consumer complaints and provide redress

C. To regulate consumer transactions and enforce consumer rights

D. To provide consumer credit and financing options

Correct Answer: B

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Question 12

A company in Nigeria exports goods to a foreign country. What type of trade is this an example of?

A. Importation

Correct B. Exportation

C. Domestic trade

D. International trade

Correct Answer: B

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Question 13

A business in Nigeria uses a just-in-time inventory system. What is the primary advantage of this system?

Correct A. Reduced inventory costs

B. Improved customer satisfaction

C. Increased efficiency

D. Enhanced product quality

Correct Answer: A

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Question 14

A bank in Nigeria offers a credit card with a 20% interest rate. What is the effective interest rate if the card is used for 12 months?

A. 18%

B. 20%

Correct C. 22%

D. 25%

Correct Answer: C

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Question 15

A company in Nigeria uses a warehouse management system to track inventory levels. What is the primary benefit of this system?

Correct A. Improved inventory accuracy

B. Enhanced customer satisfaction

C. Increased efficiency

D. Reduced inventory costs

Correct Answer: A

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Question 16

A company's production process involves the use of a machine that requires regular maintenance to prevent breakdowns. The maintenance cost is ₦10,000 per month, and the machine's breakdown cost is ₦50,000 per occurrence. If the machine breaks down once every 6 months, what is the total cost of ownership for a 12-month period?

A. ₦120,000

Correct B. ₦150,000

C. ₦180,000

D. ₦200,000

Correct Answer: B

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Question 17

A warehouse has a storage capacity of 10,000 units. The warehouse is currently 70% full, and the inventory turnover rate is 4 times per year. If the demand for the product increases by 20%, what is the new storage capacity required to meet the increased demand?

A. 12,000 units

B. 15,000 units

Correct C. 18,000 units

D. 20,000 units

Correct Answer: C

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Question 18

A company uses a just-in-time (JIT) inventory system to manage its inventory. The JIT system requires a 95% service level, and the lead time is 3 days. If the demand for the product is 100 units per day, what is the reorder point for the JIT system?

A. 300 units

B. 350 units

Correct C. 400 units

D. 450 units

Correct Answer: C

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Question 19

A company uses a transportation mode that has a fixed cost of ₦50,000 per trip and a variable cost of ₦10,000 per unit. If the company transports 1,000 units per trip, what is the total cost of transportation for a 5-trip journey?

A. ₦550,000

B. ₦600,000

Correct C. ₦650,000

D. ₦700,000

Correct Answer: C

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Question 20

A company uses a communication mode that has a fixed cost of ₦20,000 per month and a variable cost of ₦5,000 per message. If the company sends 500 messages per month, what is the total cost of communication for a 6-month period?

A. ₦150,000

B. ₦180,000

Correct C. ₦210,000

D. ₦240,000

Correct Answer: C

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Question 21

In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing costs. However, in a monopolistically competitive market, the supply curve is also upward-sloping, but for a different reason. What is the primary reason for the upward-sloping supply curve in a monopolistically competitive market?

A. The law of increasing costs

B. The desire to maximize profits

C. The fear of entry by new firms

Correct D. The presence of advertising expenses

Correct Answer: D

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Question 22

A firm is considering investing in a new project with a net present value (NPV) of ₦1,500,000. The cost of capital is 10% per annum. What is the internal rate of return (IRR) of the project?

A. 12%

Correct B. 15%

C. 18%

D. 20%

Correct Answer: B

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Question 23

A company is considering two different marketing strategies: a push strategy and a pull strategy. Which strategy is more likely to be effective in a market with a high level of consumer awareness and a strong brand identity?

A. Push strategy

Correct B. Pull strategy

C. Both strategies are equally effective

D. Neither strategy is effective

Correct Answer: B

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Question 24

A firm is considering outsourcing its production to a foreign country. What are the potential advantages of outsourcing?

Correct A. Lower labor costs, improved quality, and increased flexibility

B. Lower labor costs, improved quality, and increased market share

C. Lower labor costs, improved quality, and increased market share

D. Lower labor costs, improved quality, and increased flexibility

Correct Answer: A

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Question 25

A company is considering investing in a new product line. The product has a high level of market demand, but the production costs are also high. What is the primary factor that will determine the success of the product?

A. Market demand

Correct B. Production costs

C. Marketing strategy

D. Distribution channels

Correct Answer: B

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