Practice Post UTME RHEMA UNIVERSITY commerce 2021 Past Questions

Question 1

A business uses a transportation mode that involves the movement of goods by road. What is the primary advantage of this mode?

A. Flexibility in routing

B. Reduced transportation costs

C. Improved security

D. Increased speed

Question 2

A company's transport manager is responsible for ensuring that all goods are transported safely and efficiently. What is the primary responsibility of the transport manager?

A. To ensure that all goods are transported on time.

B. To ensure that all goods are transported safely.

C. To ensure that all goods are transported efficiently.

D. To ensure that all goods are transported at the lowest cost.

Question 3

A warehouse has a storage capacity of 10,000 units. If 8,000 units are already stored, what percentage of the warehouse is occupied?

A. 20%

B. 30%

C. 40%

D. 50%

Question 4

A company's articles of association state that the company must maintain a minimum of ₦500,000 in its reserve fund. What is the purpose of this reserve fund?

A. To provide a source of funds for the company's operational expenses.

B. To ensure the company's solvency and stability.

C. To provide a source of funds for the company's dividend payments.

D. To provide a source of funds for the company's expansion plans.

Question 5

A company's memorandum of association provides for the issue of debentures to raise capital. What is the primary purpose of debentures?

A. To raise short-term capital

B. To raise long-term capital

C. To provide a source of loan capital

D. To provide a source of equity capital

Question 6

A firm exports goods to a foreign country. What is the primary responsibility of the firm in complying with foreign trade regulations?

A. To ensure compliance with local regulations

B. To verify the authenticity of the product

C. To check the product's compliance with industry standards

D. To inspect the product's packaging

Question 7

A foreign trade agreement between two countries requires that all imports be subject to a 10% tariff. What is the effect of this tariff on the importing country's economy?

A. The tariff increases the importing country's GDP.

B. The tariff decreases the importing country's GDP.

C. The tariff has no effect on the importing country's GDP.

D. The tariff increases the importing country's inflation rate.

Question 8

A company has the following revenue function: R = 1000 + 20Q. If the price of the product is ₦50 per unit, what is the marginal revenue of producing the 20th unit?

A. ₦1000

B. ₦2000

C. ₦3000

D. ₦4000

Question 9

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.

B. 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.

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.

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.

Question 10

The Consumer Protection Act of 1999 in Nigeria provides for the protection of consumers from unfair trade practices. Which of the following is NOT a provision of the Act?

A. Prohibition of unfair contract terms

B. Establishment of the Consumer Protection Council

C. Compensation for consumers who suffer losses due to unfair trade practices

D. Granting of immunity to manufacturers from liability for defective products

Question 11

A consumer purchases a product from a retailer who has not disclosed the product's defects. The consumer suffers losses as a result. What is the retailer's liability under the Consumer Protection Act?

A. The retailer is liable for the consumer's losses and must compensate the consumer

B. The retailer is not liable for the consumer's losses as the defect was not disclosed

C. The retailer is liable for the consumer's losses but only to the extent of the product's value

D. The retailer is liable for the consumer's losses but only if the consumer can prove negligence

Question 12

Under the Consumer Protection Act, what is the primary responsibility of a consumer in a transaction?

A. To ensure the product is of satisfactory quality

B. To verify the authenticity of the product

C. To check the product's compliance with industry standards

D. To inspect the product's packaging

Question 13

A firm has the following production function: Q = 2L^0.5 + 3K^0.5. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, what is the optimal combination of labor and capital that maximizes the profit?

A. L = 4, K = 1

B. L = 1, K = 4

C. L = 2, K = 2

D. L = 1, K = 1

Question 14

The Consumer Protection Act of 1999 provides for the establishment of a Consumer Protection Council to promote and protect the rights of consumers. Which of the following is a function of the Consumer Protection Council?

A. To investigate complaints from consumers

B. To promote consumer education and awareness

C. To regulate the activities of businesses

D. To provide legal representation for consumers

Question 15

A firm is considering two different advertising strategies for its new product. Strategy A involves a one-time payment of ₦500,000 and a monthly payment of ₦50,000 for 12 months. Strategy B involves a one-time payment of ₦300,000 and a monthly payment of ₦75,000 for 12 months. If the firm expects to sell 10,000 units of the product per month, what is the total cost of Strategy A?

A. ₦6,500,000

B. ₦7,500,000

C. ₦8,500,000

D. ₦9,500,000

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