Practice Post UTME NOUN commerce 2025 Past Questions

Question 1

A company has a warehouse with a capacity to store 1000 units of goods. The warehouse is currently 60% full. If 300 units of goods are added to the warehouse, what percentage of the warehouse is now full?

A. 40%

Correct B. 50%

C. 60%

D. 70%

Correct Answer: B

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Question 2

A consumer protection agency has received a complaint about a company that has been selling a product with a misleading label. The label claims that the product is '100% natural' when in fact it contains 20% artificial ingredients. What type of law would the agency use to prosecute the company?

A. Consumer Protection Act

B. Environmental Protection Act

C. Product Liability Act

Correct D. False Advertising Act

Correct Answer: D

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Question 3

A company has a production line that produces 500 units of goods per hour. If the production line operates for 8 hours a day, what is the total number of units produced in a day?

A. 4000

B. 5000

Correct C. 6000

D. 8000

Correct Answer: C

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Question 4

A company has a warehouse with a capacity to store 1000 units of goods. The warehouse is currently 60% full. If 300 units of goods are removed from the warehouse, what percentage of the warehouse is now empty?

A. 20%

B. 30%

C. 40%

Correct D. 50%

Correct Answer: D

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Question 5

A consumer protection agency has received a complaint about a company that has been selling a product with a misleading label. The label claims that the product is '100% natural' when in fact it contains 20% artificial ingredients. What type of law would the agency use to prosecute the company?

A. Consumer Protection Act

B. Environmental Protection Act

C. Product Liability Act

Correct D. False Advertising Act

Correct Answer: D

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Question 6

In a perfectly competitive market, the demand curve for a firm's product is its

A. marginal cost curve

Correct B. marginal revenue curve

C. average revenue curve

D. average cost curve

Correct Answer: B

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Question 7

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, then its current output is

A. 24

B. 32

Correct C. 48

D. 64

Correct Answer: C

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Question 8

A company's marketing budget is ₦1,500,000. If it allocates 30% of the budget to advertising and 20% to sales promotion, then the amount allocated to sales promotion is

A. ₦300,000

B. ₦350,000

Correct C. ₦400,000

D. ₦450,000

Correct Answer: C

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Question 9

A bank's reserve requirement is 10%. If the bank has a cash reserve of ₦100,000 and it wants to increase its lending capacity by 20%, then the amount it can lend is

A. ₦180,000

B. ₦200,000

Correct C. ₦220,000

D. ₦240,000

Correct Answer: C

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Question 10

A firm's insurance premium is ₦50,000 per annum. If the probability of a loss occurring is 0.05, then the expected loss is

A. ₦2,500

B. ₦2,750

Correct C. ₦3,000

D. ₦3,250

Correct Answer: C

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Question 11

A sole trader's business is considered a separate legal entity from its owner. However, in the event of a lawsuit, the owner's personal assets may be at risk. Which of the following is a potential consequence of this situation?

A. The owner's personal assets are protected from business liabilities.

Correct B. The owner's personal assets may be seized to settle business debts.

C. The business is automatically dissolved in the event of a lawsuit.

D. The owner's personal assets are not affected by business lawsuits.

Correct Answer: B

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Question 12

A company's articles of association may be amended to change the company's business objectives. Which of the following is a valid reason for amending the articles of association?

A. To increase the company's share capital.

Correct B. To change the company's business objectives.

C. To appoint a new director.

D. To dissolve the company.

Correct Answer: B

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Question 13

A warehouse manager is responsible for maintaining accurate inventory records. Which of the following is a key principle of inventory management?

A. First-in, first-out (FIFO) inventory management.

B. Last-in, first-out (LIFO) inventory management.

Correct C. Economic order quantity (EOQ) inventory management.

D. Just-in-time (JIT) inventory management.

Correct Answer: C

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Question 14

A marketing manager is responsible for developing a marketing strategy to increase sales. Which of the following is a key element of a marketing strategy?

Correct A. Market research and analysis.

B. Product development and design.

C. Pricing and distribution strategies.

D. Advertising and promotion campaigns.

Correct Answer: A

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Question 15

A consumer protection agency is responsible for enforcing consumer rights. Which of the following is a key principle of consumer protection?

A. Consumer sovereignty and choice.

Correct B. Fair and honest business practices.

C. Protection of consumer health and safety.

D. Consumer education and awareness.

Correct Answer: B

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Question 16

A sole trader's business is considered a separate legal entity from its owner. Discuss this statement in the context of consumer protection.

Correct A. True, as the business is a separate entity with its own rights and liabilities.

B. False, as the business is an extension of the owner's personal identity.

C. Partially true, as the business has some separate rights but is still subject to the owner's control.

D. False, as the business is not a separate entity and is solely responsible for the owner's actions.

Correct Answer: A

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Question 17

A company's memorandum of association is a document that outlines the company's objectives and powers. Discuss the importance of this document in the context of consumer protection.

Correct A. It provides a clear understanding of the company's objectives and powers, which is essential for consumer protection.

B. It is a mere formality and has no significant impact on consumer protection.

C. It is a confidential document and not publicly available, which makes it irrelevant to consumer protection.

D. It is a document that outlines the company's liabilities and responsibilities, which is not relevant to consumer protection.

Correct Answer: A

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Question 18

A consumer has purchased a product from a company that has since gone bankrupt. Discuss the consumer's rights and options in this scenario.

Correct A. The consumer has the right to claim a refund from the company's liquidators.

B. The consumer has the right to claim compensation from the company's directors.

C. The consumer has the right to claim a replacement product from the company's suppliers.

D. The consumer has no rights and must accept the loss.

Correct Answer: A

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Question 19

A bank has refused to honor a customer's check due to insufficient funds. Discuss the bank's liability in this scenario.

Correct A. The bank is liable for any losses incurred by the customer as a result of the refused check.

B. The bank is not liable for any losses incurred by the customer as a result of the refused check.

C. The bank is liable for any losses incurred by the customer's creditors as a result of the refused check.

D. The bank is not liable for any losses incurred by the customer's creditors as a result of the refused check.

Correct Answer: A

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Question 20

A marketing campaign has been launched by a company to promote a new product. Discuss the potential impact of this campaign on consumer behavior.

Correct A. The campaign will increase consumer awareness and demand for the product.

B. The campaign will decrease consumer awareness and demand for the product.

C. The campaign will have no impact on consumer behavior.

D. The campaign will increase consumer awareness but decrease demand for the product.

Correct Answer: A

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Question 21

In a perfectly competitive market, the law of diminishing marginal utility implies that the marginal utility of the last unit of a good consumed is always greater than the marginal utility of the first unit consumed. What is the correct statement regarding the law of diminishing marginal utility?

A. The law of diminishing marginal utility states that the marginal utility of the last unit of a good consumed is always greater than the marginal utility of the first unit consumed.

Correct B. The law of diminishing marginal utility states that the marginal utility of the last unit of a good consumed is always less than the marginal utility of the first unit consumed.

C. The law of diminishing marginal utility states that the marginal utility of the last unit of a good consumed is always equal to the marginal utility of the first unit consumed.

D. The law of diminishing marginal utility states that the marginal utility of the last unit of a good consumed is always greater than the marginal utility of the first unit consumed, but only in the short run.

Correct Answer: B

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Question 22

A company is considering two different production processes for a new product. Process A requires an initial investment of ₦10 million and produces 100 units per day, while Process B requires an initial investment of ₦5 million and produces 50 units per day. If the company wants to maximize its profit, which process should it choose?

A. Process A

Correct B. Process B

C. Both processes are equally profitable

D. Neither process is profitable

Correct Answer: B

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Question 23

A firm is considering two different pricing strategies for a new product. Strategy A involves setting a high price to maximize profit, while Strategy B involves setting a low price to maximize market share. If the firm wants to maximize its market share, which strategy should it choose?

A. Strategy A

Correct B. Strategy B

C. Both strategies are equally effective

D. Neither strategy is effective

Correct Answer: B

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Question 24

A company is considering two different distribution channels for a new product. Channel A involves selling the product directly to consumers through a company-owned retail store, while Channel B involves selling the product through a third-party distributor. If the company wants to minimize its costs, which channel should it choose?

A. Channel A

Correct B. Channel B

C. Both channels are equally cost-effective

D. Neither channel is cost-effective

Correct Answer: B

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Question 25

A firm is considering two different marketing strategies for a new product. Strategy A involves using a high level of advertising to create brand awareness, while Strategy B involves using a low level of advertising to focus on product features. If the firm wants to maximize its sales, which strategy should it choose?

Correct A. Strategy A

B. Strategy B

C. Both strategies are equally effective

D. Neither strategy is effective

Correct Answer: A

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POST UTME NOUN 2025 Commerce | Objective

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