POST UTME NOUN 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's 'Warehousing and Stock Control' system is critical to its supply chain management. Which of the following is NOT a key benefit of an effective warehousing system?
A. Reduced storage costs
B. Improved inventory management
C. Enhanced customer satisfaction
D. Increased production capacity
Question 2
A firm has a trade agreement with a foreign country that involves the exchange of goods and services. The agreement includes a clause that requires the firm to pay a tariff on the imported goods. What is the primary effect of the tariff on the firm's trade balance?
A. Increased trade deficit
B. Reduced trade surplus
C. Improved trade balance
D. Enhanced trade competitiveness
Question 3
A bank offers a credit card with a 20% interest rate per annum. If the customer makes a payment of ₦10,000, how much will they owe after 6 months?
A. ₦16,400
B. ₦17,600
C. ₦18,800
D. ₦20,000
Question 4
A bank uses a risk management system to identify and mitigate potential risks in its investment portfolio. The system includes a credit risk module that uses a credit scoring model to evaluate the creditworthiness of its borrowers. What is the primary benefit of using a credit scoring model in this credit risk module?
A. Improved credit risk assessment
B. Reduced credit risk
C. Enhanced credit scoring accuracy
D. Increased credit risk exposure
Question 5
A sole trader's business is considered a separate legal entity from its owner. However, the owner is personally liable for all business debts. What is the name of this type of liability?
A. Unlimited liability
B. Limited liability
C. Joint and several liability
D. Strict liability
Question 6
In the context of 'Banking and Financial Institutions', what is the primary function of a 'Commercial Bank'?
A. To provide loans to individuals
B. To manage investments
C. To facilitate transactions
D. To provide insurance services
Question 7
A company uses a transportation mode that has a capacity of 500 units per trip. If the company needs to transport 2000 units, how many trips will be required?
A. 2 trips
B. 3 trips
C. 4 trips
D. 5 trips
Question 8
A person purchases a life insurance policy that pays out a lump sum in the event of their death. This is an example of which of the following types of insurance?
A. Term life insurance
B. Whole life insurance
C. Endowment insurance
D. Investment-linked insurance
Question 9
The Consumer Protection Act of 1999 in Nigeria provides for the protection of consumers from unfair trade practices. Which of the following is a key provision of the Act?
A. The Act provides for the establishment of a Consumer Protection Council.
B. The Act provides for the protection of consumers from unfair trade practices.
C. The Act provides for the establishment of a Consumer Protection Agency.
D. The Act provides for the protection of consumers from defective products.
Question 10
A company's Memorandum of Association is a document that outlines the company's
A. Business objectives
B. Share capital structure
C. Directors' powers and duties
D. All of the above
Question 11
A company's sole trader has a warehouse with a capacity of 1000 units. The warehouse is currently 70% full. If the company receives an order for 500 units, what is the minimum number of units that must be stored in the warehouse to fulfill the order?
A. 600
B. 700
C. 800
D. 900
Question 12
A foreign trade agreement that aims to reduce or eliminate tariffs and other trade barriers between countries is known as
A. Free Trade Agreement (FTA)
B. Trade Liberalization Agreement (TLA)
C. Trade Facilitation Agreement (TFA)
D. All of the above
Question 13
The Consumer Protection Act of 1999 provides for the protection of consumers from unfair trade practices. Which of the following is a key provision of the Act?
A. Prohibition of unfair trade practices
B. Establishment of a Consumer Protection Council
C. Creation of a Consumer Protection Agency
D. Compensation for consumers who suffer losses due to unfair trade practices
Question 14
A sole trader's business is registered under the name 'John's Enterprise'. The business is owned by John, who is also the manager. What type of business unit is this?
A. Sole Trade
B. Partnership
C. Company
D. Cooperative
Question 15
A firm has a portfolio of assets that includes stocks, bonds, and real estate. The firm uses a diversification strategy to manage its investment risk. What is the primary benefit of diversification in this investment portfolio?
A. Increased potential returns
B. Reduced investment risk
C. Improved liquidity
D. Enhanced asset allocation

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