POST UTME UNIBEN 2018 Commerce | Objective

Are you preparing for POST UTME UNIBEN exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
In a perfectly competitive market, the law of supply states that the quantity of a good that producers are willing to supply at each price level is determined by the?
A. Marginal Cost
Correct B. Marginal Revenue
C. Opportunity Cost
D. Fixed Cost

Correct Answer: B

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Question 2
A company's marketing strategy involves creating a brand image that is perceived as luxurious and exclusive. This is an example of?
A. Product Differentiation
B. Segmentation
Correct C. Positioning
D. Target Marketing

Correct Answer: C

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Question 3
A firm's revenue is calculated as the product of the price per unit and the quantity sold. If the price per unit is ₦100 and the quantity sold is 50 units, what is the total revenue?
A. ₦4000
Correct B. ₦5000
C. ₦6000
D. ₦7000

Correct Answer: B

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Question 4
A company has a cash reserve of ₦500,000 and wants to invest in a project that requires an initial investment of ₦200,000. What is the maximum amount the company can borrow from a bank?
Correct A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: A

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Question 5
A firm's cost of capital is 10% per annum. If the firm wants to calculate its weighted average cost of capital (WACC), what is the minimum number of debt and equity components required?
A. 2
Correct B. 3
C. 4
D. 5

Correct Answer: B

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Question 6
Determine the type of business unit that would be most suitable for a small-scale entrepreneur who wants to start a retail business in a local market.
Correct A. Sole Proprietorship
B. Partnership
C. Limited Liability Company
D. Cooperative Society

Correct Answer: A

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Question 7
A company has a warehouse with a capacity to store 10,000 units of a product. If the company receives a shipment of 8,000 units, what is the percentage of the warehouse's capacity that is currently occupied?
A. 25%
B. 30%
Correct C. 40%
D. 50%

Correct Answer: C

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Question 8
A business owner wants to purchase a liability insurance policy that covers up to ₦5,000,000. If the premium is ₦50,000, what is the excess amount that the business owner will have to pay in the event of a claim?
A. ₦4,950,000
B. ₦4,950,050
C. ₦4,950,500
Correct D. ₦4,950,000

Correct Answer: D

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Question 9
A company uses a just-in-time inventory system to manage its stock levels. If the company receives a shipment of 5,000 units of a product and the current stock level is 3,000 units, what is the new stock level?
A. 6,000
Correct B. 7,000
C. 8,000
D. 9,000

Correct Answer: B

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Question 10
A business owner wants to calculate the total cost of a marketing campaign that includes a social media advertising budget of ₦200,000 and a print advertising budget of ₦300,000. If the business owner also wants to include a 10% contingency fund, what is the total budget for the marketing campaign?
A. ₦500,000
B. ₦550,000
C. ₦600,000
Correct D. ₦650,000

Correct Answer: D

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Question 11
A sole trader's business is characterized by which of the following?
A. Unlimited liability
B. Limited liability
C. Separate legal entity
Correct D. No distinction between owner's and business assets

Correct Answer: D

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Question 12
A company's memorandum of association is a document that outlines the
Correct A. Objectives of the company
B. Rights and powers of the shareholders
C. Relationship between the company and its directors
D. Procedure for the appointment of directors

Correct Answer: A

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Question 13
A production function is a graphical representation of the relationship between
Correct A. Input and output
B. Input and price
C. Output and price
D. Input and time

Correct Answer: A

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Question 14
A firm's production function is characterized by the law of
A. Increasing returns to scale
B. Decreasing returns to scale
C. Constant returns to scale
Correct D. Diminishing returns

Correct Answer: D

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Question 15
A country's balance of payments is a statistical statement that summarizes its
A. Imports and exports of goods and services
B. Imports and exports of goods and services, and capital transactions
C. Imports and exports of goods and services, and income transactions
Correct D. Imports and exports of goods and services, and capital and income transactions

Correct Answer: D

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Question 16
The Federal Competition and Consumer Protection Commission (FCCPC) has the power to investigate and prosecute any person or company that engages in unfair business practices. Which of the following is a type of unfair business practice?
A. False advertising
B. Price-fixing
C. Predatory pricing
Correct D. All of the above

Correct Answer: D

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Question 17
A company is considering investing in a new project. The project has a high potential for returns, but it also carries a high level of risk. Which of the following is a type of risk that the company should consider?
A. Financial risk
B. Operational risk
C. Strategic risk
Correct D. All of the above

Correct Answer: D

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Question 18
A consumer has purchased a product from a company, but the product has a defect. The consumer wants to return the product and get a refund. Which of the following is the consumer's right under the Consumer Protection Act?
Correct A. The right to a full refund
B. The right to a partial refund
C. The right to a replacement product
D. The right to a repair of the product

Correct Answer: A

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Question 19
A company is considering exporting its products to a foreign country. Which of the following is a type of export that the company should consider?
Correct A. Direct export
B. Indirect export
C. Export through a trading company
D. Export through a joint venture

Correct Answer: A

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Question 20
A company is considering importing a product from a foreign country. Which of the following is a type of import that the company should consider?
Correct A. Direct import
B. Indirect import
C. Import through a trading company
D. Import through a joint venture

Correct Answer: A

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Question 21
In a perfectly competitive market, the supply curve is determined by the marginal cost (MC) curve. If the MC curve shifts to the right, what will happen to the supply curve?
A. It will shift to the left
Correct B. It will shift to the right
C. It will remain unchanged
D. It will shift downward

Correct Answer: B

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Question 22
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor (w) is 10 and the price of capital (r) is 20, and the firm wants to maximize its profit, what is the optimal level of labor (L) and capital (K)?
Correct A. L = 100, K = 100
B. L = 50, K = 50
C. L = 200, K = 200
D. L = 150, K = 150

Correct Answer: A

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Question 23
A company is considering two different advertising strategies: Strategy A, which costs 100,000 and is expected to generate 200,000 in revenue, and Strategy B, which costs 150,000 and is expected to generate 250,000 in revenue. Which strategy should the company choose?
A. Strategy A
Correct B. Strategy B
C. Both strategies are equally profitable
D. Neither strategy is profitable

Correct Answer: B

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Question 24
A warehouse has a capacity of 10,000 units and is currently storing 8,000 units. If 2,000 units are added to the warehouse, what is the new capacity?
A. 10,000
Correct B. 12,000
C. 8,000
D. 6,000

Correct Answer: B

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Question 25
A company has a 10% chance of winning a contract worth 100,000. What is the expected value of the contract?
Correct A. 10,000
B. 20,000
C. 30,000
D. 40,000

Correct Answer: A

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