POST UTME NOUN 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A bank has a reserve requirement of 10%. If it has a cash reserve of ₦100,000, what is the maximum amount of loans it can give out?
A. ₦900,000
B. ₦1,000,000
C. ₦1,100,000
D. ₦1,200,000
Question 2
A firm uses the following transportation costs per unit: 10 units, 20 units, and 30 units. If the firm produces 100 units and sells 50 units, what is the total transportation cost?
A. ₦1,500
B. ₦2,000
C. ₦2,500
D. ₦3,000
Question 3
A company has a capital of ₦1,000,000. If it issues 10,000 shares of ₦100 each, what is the total number of shares outstanding?
A. 9,000
B. 10,000
C. 11,000
D. 12,000
Question 4
A bank offers a loan with an interest rate of 12% per annum compounded annually. If the principal amount is ₦100,000, what is the amount after 2 years?
A. ₦121,000
B. ₦122,000
C. ₦123,000
D. ₦124,000
Question 5
A _______ is a type of business organization that is owned and controlled by its members, who share the profits and losses.
A. Partnership
B. Corporation
C. Sole proprietorship
D. Cooperative
Question 6
A company's business law requires it to disclose certain information to its customers. Which of the following is an example of a consumer protection law?
A. Truth in advertising law
B. Product liability law
C. Consumer credit law
D. Franchise law
Question 7
A person has a life insurance policy with a premium of ₦10,000 per annum. If the policy has a term of 10 years, what is the total premium paid?
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦200,000
Question 8
A company exports 1,000 units of a product to a foreign country. If the export price is 10 per unit, and the exchange rate is 1 USD = ₦360, what is the total value of the export in Nigerian Naira?
A. ₦3,600,000
B. ₦4,000,000
C. ₦4,200,000
D. ₦4,500,000
Question 9
The _______ of a firm refers to the process of producing a specific product or service using a combination of inputs.
A. Production
B. Distribution
C. Marketing
D. Specialization
Question 10
A company has a warehouse with a capacity of 10,000 units. If it receives a shipment of 5,000 units, what is the new capacity?
A. 10,000
B. 15,000
C. 5,000
D. 20,000
Question 11
A company is considering the purchase of a new warehouse. The warehouse has a capacity of 10,000 square meters and is expected to last for 10 years. What is the annual depreciation of the warehouse?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 12
A company is considering the implementation of a new production process. The process involves the use of automation to improve efficiency. Which of the following is a key benefit of automation?
A. Improved product quality
B. Increased production efficiency
C. Enhanced customer service
D. Reduced labor costs
Question 13
A consumer purchases a product with a warranty that covers repairs and replacements for a certain period. Which of the following is a type of insurance that provides protection against financial losses due to unforeseen events?
A. Life insurance
B. Health insurance
C. Property insurance
D. Liability insurance
Question 14
A bank's financial institution provides loans to customers at a fixed interest rate. Which of the following is a type of banking service?
A. Savings account
B. Checking account
C. Credit card
D. Personal loan
Question 15
A company's insurance policy includes a clause that requires the company to pay a deductible in the event of a loss. Which of the following types of insurance policies is most likely to include this clause?
A. Liability insurance
B. Property insurance
C. Workers' compensation insurance
D. Business interruption insurance

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