POST UTME NOUN 2019 Commerce | Objective

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Question 1 View Details
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will
A. increase
Correct B. decrease
C. remain constant
D. shift to the left

Correct Answer: B

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Question 2 View Details
A company's financial statement shows a net income of ₦1,500,000. If the company's tax rate is 25%, what is the amount of taxes paid?
Correct A. ₦375,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦3,750,000

Correct Answer: A

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Question 3 View Details
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?
Correct A. Sole Trade
B. Partnership
C. Company
D. Cooperative

Correct Answer: A

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Question 4 View Details
A consumer protection law states that a consumer has the right to a refund if a product is defective. Which of the following is a type of consumer protection?
Correct A. Consumer Rights
B. Product Liability
C. Consumer Protection Act
D. Consumer Education

Correct Answer: A

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Question 5 View Details
A company's financial statement shows a net income of ₦1,500,000. If the company's tax rate is 25%, what is the amount of taxes paid?
Correct A. ₦375,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦3,750,000

Correct Answer: A

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Question 6 View Details
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.
Correct 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.

Correct Answer: B

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Question 7 View Details
A company transports goods from Lagos to Abuja using a third-party logistics provider. The company is liable for any damage to the goods during transit under which of the following laws?
A. The Carriage of Goods by Sea Act 1992
Correct B. The Carriage of Goods by Land Act 1992
C. The Consumer Protection Act 1999
D. The Sale of Goods Act 1997

Correct Answer: B

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Question 8 View Details
A company uses a marketing strategy that involves creating a sense of urgency to encourage customers to make a purchase. This strategy is an example of which of the following?
Correct A. Scarcity marketing
B. Loss aversion
C. Social proof
D. Authority marketing

Correct Answer: A

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Question 9 View Details
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
Correct B. ₦17,600
C. ₦18,800
D. ₦20,000

Correct Answer: B

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Question 10 View Details
A company purchases a liability insurance policy that covers up to ₦1 million in case of any liability. If the company is sued for ₦800,000, what will be the insurance company's liability?
Correct A. ₦0
B. ₦200,000
C. ₦800,000
D. ₦1,000,000

Correct Answer: A

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Question 11 View Details
The concept of 'Consumer Protection' in Commerce is closely related to the idea of 'Consumer Rights'. Which of the following is NOT a fundamental consumer right?
A. The right to be informed
B. The right to be heard
C. The right to be protected from hazardous products
Correct D. The right to be employed

Correct Answer: D

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Question 12 View Details
A company's 'Marketing Mix' is a crucial component of its marketing strategy. Which of the following is NOT a key element of the Marketing Mix?
A. Product
B. Price
C. Place
Correct D. Research

Correct Answer: D

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Question 13 View Details
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
Correct C. To facilitate transactions
D. To provide insurance services

Correct Answer: C

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Question 14 View Details
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
Correct D. Increased production capacity

Correct Answer: D

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Question 15 View Details
In the context of 'Marketing and Advertising', what is the primary goal of a 'Marketing Mix'?
A. To increase brand awareness
B. To build customer loyalty
C. To generate sales leads
Correct D. To create a competitive advantage

Correct Answer: D

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Question 16 View Details
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?
Correct A. 600
B. 700
C. 800
D. 900

Correct Answer: A

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Question 17 View Details
A company has two business units: A and B. Unit A has a profit of ₦500,000 and Unit B has a loss of ₦200,000. What is the overall profit of the company?
Correct A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: A

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Question 18 View Details
A company uses a just-in-time inventory system. If the company receives an order for 1000 units and the warehouse is currently empty, what is the minimum time it will take to receive the order?
A. 1 day
Correct B. 2 days
C. 3 days
D. 4 days

Correct Answer: B

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Question 19 View Details
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
Correct B. 3 trips
C. 4 trips
D. 5 trips

Correct Answer: B

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Question 20 View Details
A company has a bank account with a balance of ₦500,000. If the company deposits ₦200,000, what is the new balance?
A. ₦600,000
Correct B. ₦700,000
C. ₦800,000
D. ₦900,000

Correct Answer: B

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Question 21 View Details
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is labor, and K is capital. If the company increases labor from 100 to 121 units and capital from 100 to 121 units, what is the percentage change in the quantity produced?
A. 10%
B. 20%
Correct C. 30%
D. 40%

Correct Answer: C

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Question 22 View Details
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm increases the price from ₦10 to ₦12, what is the percentage change in the quantity demanded?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 23 View Details
A bank's balance sheet is given by Assets = ₦100,000, Liabilities = ₦50,000, and Equity = ₦50,000. If the bank increases its assets by 10% and its liabilities by 5%, what is the new equity?
A. ₦55,000
B. ₦60,000
Correct C. ₦65,000
D. ₦70,000

Correct Answer: C

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Question 24 View Details
A company's cost function is given by C = 100L + 200K, where C is the total cost, L is labor, and K is capital. If the company increases labor from 100 to 121 units and capital from 100 to 121 units, what is the new total cost?
A. ₦24,100
B. ₦26,400
Correct C. ₦28,700
D. ₦31,000

Correct Answer: C

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Question 25 View Details
A firm's revenue function is given by R = 100Q - 2Q^2, where R is the total revenue and Q is the quantity sold. If the firm increases the quantity sold from 10 to 15 units, what is the new total revenue?
A. ₦1,500
B. ₦2,250
Correct C. ₦3,000
D. ₦3,750

Correct Answer: C

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