POST UTME UI 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's financial statements show that its revenue has increased by 20% and its expenses have decreased by 15% compared to the previous year. What is the likely effect on the company's net income?
A. The net income will increase by 5%.
B. The net income will decrease by 5%.
C. The net income will increase by 10%.
D. The net income will decrease by 10%.
Question 2
A sole trader, Mr. A, has a business that generates annual sales of ₦1,500,000. His expenses include rent (₦200,000), salaries (₦300,000), and other expenses (₦100,000). What is Mr. A's net profit?
A. ₦800,000
B. ₦900,000
C. ₦1,000,000
D. ₦1,200,000
Question 3
A consumer purchases a product with a price of ₦5,000. If the product is subject to a 10% discount, what is the amount the consumer pays?
A. ₦4,500
B. ₦4,000
C. ₦4,500
D. ₦5,000
Question 4
A company's production function is given by the equation Q = 2L + 3K, where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital invested. If the company wants to produce 100 units of output, how many labor hours are required if the amount of capital invested is 20?
A. 10
B. 20
C. 30
D. 40
Question 5
A company's marketing strategy involves creating a brand image that is perceived as luxurious and exclusive. The company uses high-end packaging, expensive advertising, and limited distribution to create an aura of scarcity. What type of marketing strategy is this company using?
A. Product differentiation
B. Segmentation
C. Target marketing
D. Positioning
Question 6
A company has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. If the company issues 20,000 shares to the public, what is the amount of share capital raised?
A. ₦200,000
B. ₦400,000
C. ₦600,000
D. ₦800,000
Question 7
A consumer protection agency receives a complaint from a customer who claims that a company has engaged in unfair business practices. The agency investigates the complaint and finds that the company has indeed engaged in unfair business practices. What is the likely outcome of the agency's investigation?
A. The agency will order the company to cease and desist from the unfair business practices.
B. The agency will fine the company for engaging in unfair business practices.
C. The agency will dismiss the complaint because the company has not engaged in unfair business practices.
D. The agency will order the company to pay compensation to the customer.
Question 8
A bank's financial statements show a net income of ₦500,000 and a total equity of ₦2,000,000. What is the bank's return on equity (ROE)?
A. 25%
B. 30%
C. 35%
D. 40%
Question 9
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). Which of the following is a consequence of this?
A. The sole trader cannot claim tax relief on business expenses.
B. The sole trader is not required to keep a separate business bank account.
C. The sole trader's business is not protected from personal liability.
D. The sole trader cannot employ staff.
Question 10
A company uses the following transportation costs: ₦10,000 for land transport and ₦20,000 for air transport. If the company uses both modes of transport, what is the total transportation cost?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 11
A firm's marketing strategy involves a mix of both push and pull strategies. Which of the following is a characteristic of a pull strategy?
A. Creating awareness about the product among the target audience
B. Encouraging repeat purchases through loyalty programs
C. Providing incentives to intermediaries to push the product
D. Creating a sense of urgency among customers to make a purchase
Question 12
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. Nigeria producing textiles and importing food
B. Nigeria producing food and importing textiles
C. Nigeria producing both textiles and food
D. Nigeria producing neither textiles nor food
Question 13
A company is considering the introduction of a new product line. The product has a high demand, but the production costs are high. The company's marketing manager suggests that the product be priced at a premium to maximize profits. However, the financial analyst recommends a lower price to increase market share. What pricing strategy should the company adopt?
A. Penetration pricing
B. Skimming pricing
C. Price lining
D. Bundle pricing
Question 14
A product has a production cost of ₦100 per unit and a selling price of ₦150 per unit. If the company produces 1,000 units, what is the profit?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 15
A bank's cash management system involves the following steps: cash forecasting, cash budgeting, cash flow management, and cash control. Which of the following is a key benefit of cash budgeting?
A. Improved cash flow management
B. Reduced cash handling costs
C. Enhanced customer satisfaction
D. Increased profitability

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