Practice Post UTME RHEMA UNIVERSITY commerce 2019 Past Questions

Question 1

The Central Bank of Nigeria (CBN) uses the monetary policy instrument of Open Market Operations (OMO) to increase the money supply in the economy. What is the primary effect of OMO on the money supply?

A. Increase the reserve requirements of commercial banks

B. Sell government securities to commercial banks

C. Increase the money supply by injecting liquidity into the economy

D. Decrease the interest rate to stimulate borrowing

Question 2

A company is considering two different advertising strategies for its product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. Which strategy is more likely to be effective in increasing sales?

A. Strategy A, because it involves a high level of advertising and promotion

B. Strategy B, because it involves a low level of advertising and promotion

C. Strategy A, because it involves a low level of advertising and promotion

D. Strategy B, because it involves a high level of advertising and promotion

Question 3

A sole trader's business is insured against fire, flood, and theft. If the premium for fire insurance is ₦5,000, the premium for flood insurance is ₦3,000, and the premium for theft insurance is ₦2,000, what is the total premium paid by the sole trader?

A. ₦10,000

B. ₦12,000

C. ₦14,000

D. ₦16,000

Question 4

A sole trader's business is not required to file its accounts with the

A. Registrar of Companies

B. Inland Revenue Service

C. Companies and Allied Matters Commission

D. Federal Inland Revenue Service

Question 5

A firm's demand curve is given by the equation Qd = 100 - 2P. If the price of the good is ₦50, what is the quantity demanded?

A. 50 units

B. 75 units

C. 100 units

D. 125 units

Question 6

A company's introduction to commerce involves the production and sale of goods. What is the primary goal of this business?

A. To make a profit

B. To provide employment

C. To improve the environment

D. To increase market share

Question 7

A company is considering two different marketing strategies for its new product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. Which strategy is more likely to be effective in increasing sales?

A. Strategy A, because it involves a high level of advertising and promotion

B. Strategy B, because it involves a low level of advertising and promotion

C. Strategy A, because it involves a low level of advertising and promotion

D. Strategy B, because it involves a high level of advertising and promotion

Question 8

In a consumer protection context, what is the primary purpose of the Consumer Protection Act?

A. To regulate consumer transactions

B. To protect consumer rights

C. To promote consumer education

D. To regulate business practices

Question 9

A company's financial statements include the

A. Balance Sheet

B. Income Statement

C. Cash Flow Statement

D. All of the above

Question 10

A warehouse is using a first-in-first-out (FIFO) inventory management system. However, the warehouse has a high turnover rate, and the inventory is constantly being replenished. Which of the following is the most likely consequence of using this system?

A. The warehouse will experience a decrease in inventory levels.

B. The warehouse will experience an increase in inventory levels.

C. The warehouse will experience a decrease in inventory turnover.

D. The warehouse will experience an increase in inventory turnover.

Question 11

A firm's production function is given by Q = 2L + 3K. If the firm's output is 15 units, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the total cost of production?

A. ₦2500

B. ₦3000

C. ₦3500

D. ₦4000

Question 12

A company is considering two different distribution channels for its product. Channel A involves a high level of intermediaries and a low level of direct sales, while Channel B involves a low level of intermediaries and a high level of direct sales. Which channel is more likely to be effective in reaching the target market?

A. Channel A, because it involves a high level of intermediaries and a low level of direct sales

B. Channel B, because it involves a low level of intermediaries and a high level of direct sales

C. Channel A, because it involves a low level of intermediaries and a high level of direct sales

D. Channel B, because it involves a high level of intermediaries and a low level of direct sales

Question 13

A consumer protection agency has been established to regulate the activities of businesses in a particular industry. The agency has the power to investigate complaints, impose fines, and revoke licenses. However, the agency's decision-making process is not transparent, and the public is not aware of the criteria used to determine which businesses to investigate. Which of the following is the most likely consequence of this situation?

A. The agency's lack of transparency will lead to a decrease in public trust in the agency.

B. The agency's lack of transparency will lead to an increase in complaints against businesses.

C. The agency's lack of transparency will lead to a decrease in the number of businesses that are investigated.

D. The agency's lack of transparency will lead to an increase in the number of fines imposed on businesses.

Question 14

A transport company is sued for damages caused by a truck accident. The company claims that the accident was caused by a mechanical failure. What type of evidence would the company need to provide to support their claim?

A. Expert testimony

B. Witness statements

C. Mechanical failure report

D. Police report

Question 15

A company has a portfolio of assets with a beta of 1.2. If the market return is 8%, what is the expected return on the portfolio?

A. 6%

B. 8%

C. 10%

D. 12%

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