POST UTME RHEMA UNIVERSITY 2017 Commerce | Objective

Are you preparing for POST UTME RHEMA UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A bank's cash reserve ratio is 20%. If the bank has a total deposit of ₦1,000,000, how much cash must it reserve?
Correct A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000

Correct Answer: A

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Question 2
A company's marketing strategy involves a 10% discount on all products. If a product originally costs ₦1,500, how much will a customer pay after the discount?
Correct A. ₦1,350
B. ₦1,400
C. ₦1,450
D. ₦1,500

Correct Answer: A

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Question 3
A consumer protection agency receives a complaint about a company's misleading advertisement. The agency finds that the company has made false claims about its product. What action should the agency take?
A. Issue a warning to the company
B. Fine the company ₦100,000
C. Ban the company from advertising
Correct D. Sue the company for damages

Correct Answer: D

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Question 4
A company's insurance policy has a deductible of ₦5,000. If the company suffers a loss of ₦20,000, how much will it receive from the insurance company?
Correct A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: A

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Question 5
A bank's interest rate is 12% per annum. If a customer deposits ₦10,000 for 2 years, how much interest will the customer earn?
Correct A. ₦2,400
B. ₦2,500
C. ₦2,600
D. ₦2,700

Correct Answer: A

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Question 6
The Consumer Protection Act of 1999 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 prosecute offenders
C. To regulate consumer transactions and enforce consumer rights
D. To provide consumer advocacy and support services

Correct Answer: B

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Question 7
A company is considering the introduction of a new product line. The product line requires an initial investment of ₦10 million and is expected to generate revenue of ₦5 million per annum for 5 years. What is the net present value of the product line?
A. ₦15,000
B. ₦20,000
Correct C. ₦25,000
D. ₦30,000

Correct Answer: C

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Question 8
A firm is considering the use of a new production technology that will reduce its production costs by 20%. The new technology will also increase its production capacity by 15%. What is the effect of the new technology on the firm's production costs?
A. The production costs will increase by 10%
Correct B. The production costs will decrease by 10%
C. The production costs will remain the same
D. The production costs will increase by 20%

Correct Answer: B

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Question 9
A company is considering the export of its products to a foreign market. The company has estimated that the export revenue will be ₦10 million and the export costs will be ₦2 million. What is the profit from the export transaction?
Correct A. ₦8,000
B. ₦10,000
C. ₦12,000
D. ₦15,000

Correct Answer: A

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Question 10
A sole trader is considering the incorporation of his business. The sole trader has estimated that the incorporation costs will be ₦5 million and the benefits of incorporation will be ₦10 million. What is the net benefit of incorporation?
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 11
A company's insurance policy covers losses due to fire, theft, and natural disasters. However, the policy excludes losses due to war and nuclear accidents. If the company's assets are valued at ₦500 million and the insurance premium is 5% of the total value, what is the total cost of the insurance premium?
Correct A. ₦25,000,000
B. ₦25,500,000
C. ₦26,000,000
D. ₦26,500,000

Correct Answer: A

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Question 12
A firm's marketing strategy involves using social media platforms to reach its target audience. However, the firm's social media manager has noticed that the engagement rates on Instagram are higher than those on Facebook. What is the most likely reason for this difference?
Correct A. Instagram's algorithm favors visual content
B. Facebook's algorithm favors text-based content
C. Instagram's audience is more active during the day
D. Facebook's audience is more active during the evening

Correct Answer: A

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Question 13
A company's supply chain involves transporting goods from the factory to the warehouse. The transportation costs are ₦10 per kilometer. If the distance between the factory and the warehouse is 50 kilometers, what is the total transportation cost?
A. ₦500
Correct B. ₦5000
C. ₦50,000
D. ₦500,000

Correct Answer: B

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Question 14
A firm's inventory management system involves tracking the quantity of goods in stock. If the firm's current inventory level is 100 units and the daily demand is 20 units, what is the reorder point?
A. 5
Correct B. 10
C. 15
D. 20

Correct Answer: B

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Question 15
A company's financial statement shows a net income of ₦1 million and a total assets of ₦5 million. What is the return on assets (ROA) percentage?
A. 20%
Correct B. 25%
C. 30%
D. 35%

Correct Answer: B

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Question 16
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. Which of the following is a correct example of comparative advantage?
A. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
Correct B. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth, but Country A has a lower opportunity cost of producing cloth.
C. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth, but Country B has a lower opportunity cost of producing wheat.
D. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth, but both countries have the same opportunity cost of producing both goods.

Correct Answer: B

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Question 17
A company is considering two different modes of transportation for its goods: road and rail. Which of the following is a key advantage of rail transportation?
A. Rail transportation is faster than road transportation.
B. Rail transportation is more environmentally friendly than road transportation.
Correct C. Rail transportation is more cost-effective than road transportation.
D. Rail transportation is more reliable than road transportation.

Correct Answer: C

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Question 18
A firm is considering the production of two different products: A and B. The production costs of the two products are as follows: Product A: ₦100 per unit, Product B: ₦150 per unit. Which of the following is a correct statement about the production of these two products?
A. The firm should produce both products A and B.
Correct B. The firm should produce only product A.
C. The firm should produce only product B.
D. The firm should not produce either product A or product B.

Correct Answer: B

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Question 19
A company is considering the establishment of a new business unit. Which of the following is a key advantage of establishing a new business unit?
A. A new business unit can help the company to diversify its products.
B. A new business unit can help the company to reduce its costs.
Correct C. A new business unit can help the company to increase its market share.
D. A new business unit can help the company to improve its financial performance.

Correct Answer: C

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Question 20
A firm is considering the use of a new production technology. Which of the following is a key advantage of the new technology?
A. The new technology is more environmentally friendly than the existing technology.
B. The new technology is more cost-effective than the existing technology.
Correct C. The new technology is more efficient than the existing technology.
D. The new technology is more reliable than the existing technology.

Correct Answer: C

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Question 21
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost compared to other countries. Which of the following is a correct example of comparative advantage?
A. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
Correct B. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 50 units of cloth.
C. Country A produces 100 units of wheat and 100 units of cloth, while Country B produces 50 units of wheat and 50 units of cloth.
D. Country A produces 50 units of wheat and 100 units of cloth, while Country B produces 100 units of wheat and 50 units of cloth.

Correct Answer: B

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Question 22
A firm's production function is given by Q = 2L + 3K, where Q is the output, L is the labor, and K is the capital. If the firm uses 10 units of labor and 5 units of capital, what is the output?
A. 20
Correct B. 30
C. 40
D. 50

Correct Answer: B

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Question 23
A firm's cost function is given by C = 2L + 3K, where C is the cost, L is the labor, and K is the capital. If the firm uses 10 units of labor and 5 units of capital, what is the cost?
A. 20
Correct B. 30
C. 40
D. 50

Correct Answer: B

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Question 24
A firm's revenue function is given by R = 2Q + 3P, where R is the revenue, Q is the output, and P is the price. If the firm produces 10 units of output and the price is 5, what is the revenue?
A. 20
Correct B. 30
C. 40
D. 50

Correct Answer: B

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Question 25
A firm's profit function is given by \[ \pi = R - C \], where \pi is the profit, R is the revenue, and C is the cost. If the firm produces 10 units of output and the price is 5, and the cost is 20, what is the profit?
A. 10
Correct B. 20
C. 30
D. 40

Correct Answer: B

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