Practice Post UTME UNIBEN commerce 2024 Past Questions

Question 1

In a sole trade business, what is the primary advantage of using a sole trader structure?

A. Limited liability

B. Tax benefits

Correct C. Flexibility in decision-making

D. Easy to set up

Correct Answer: C

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Question 2

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

Correct B. ₦400,000

C. ₦600,000

D. ₦800,000

Correct Answer: B

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Question 3

A consumer purchases a product with a price of ₦5,000. If the product is subject to a 10% discount, and the consumer pays with a credit card that charges a 5% interest rate, what is the total amount paid by the consumer?

A. ₦5,250

B. ₦5,500

Correct C. ₦5,750

D. ₦6,000

Correct Answer: C

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Question 4

A company's financial statements show a net profit of ₦500,000. If the company's tax rate is 25%, what is the amount of tax paid?

A. ₦125,000

Correct B. ₦250,000

C. ₦375,000

D. ₦500,000

Correct Answer: B

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Question 5

A sole trader business has a turnover of ₦1,000,000 and a profit of ₦200,000. If the business is subject to a 20% corporation tax rate, what is the amount of tax paid?

A. ₦40,000

B. ₦80,000

Correct C. ₦120,000

D. ₦160,000

Correct Answer: C

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Question 6

A company is considering the purchase of a new machine that costs ₦5 million. The machine has a useful life of 5 years and can be sold for ₦1.5 million at the end of its useful life. The company expects to use the machine for 3 years and then sell it. If the company's cost of capital is 10% per annum, calculate the present value of the machine using the net present value (NPV) method.

A. ₦2,500,000

Correct B. ₦3,000,000

C. ₦3,500,000

D. ₦4,000,000

Correct Answer: B

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Question 7

A consumer protection agency has received a complaint from a customer who purchased a product online. The customer claims that the product was not as described and was defective. The agency has gathered evidence that the product was indeed defective and that the seller had made false claims about the product's features. Which of the following is the most appropriate action for the agency to take?

A. Issue a warning to the seller

Correct B. Order the seller to refund the customer's money

C. Ban the seller from selling on the platform

D. Take no action

Correct Answer: B

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Question 8

A sole trader has a business that sells goods online. The sole trader has a turnover of ₦10 million per annum and a profit of ₦2 million per annum. The sole trader's capital is ₦1 million. Calculate the sole trader's return on capital (ROC) using the formula: ROC = (Profit / Capital) x 100.

A. 20%

Correct B. 25%

C. 30%

D. 35%

Correct Answer: B

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Question 9

A company is considering the purchase of a new machine that costs ₦5 million. The machine has a useful life of 5 years and can be sold for ₦1.5 million at the end of its useful life. The company expects to use the machine for 3 years and then sell it. If the company's cost of capital is 10% per annum, calculate the present value of the machine using the net present value (NPV) method.

A. ₦2,500,000

Correct B. ₦3,000,000

C. ₦3,500,000

D. ₦4,000,000

Correct Answer: B

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Question 10

A consumer protection agency has received a complaint from a customer who purchased a product online. The customer claims that the product was not as described and was defective. The agency has gathered evidence that the product was indeed defective and that the seller had made false claims about the product's features. Which of the following is the most appropriate action for the agency to take?

A. Issue a warning to the seller

Correct B. Order the seller to refund the customer's money

C. Ban the seller from selling on the platform

D. Take no action

Correct Answer: B

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Question 11

A firm specializes in producing a particular good. This specialization leads to an increase in the firm's productivity. What is the term for this phenomenon?

A. Economies of scale

Correct B. Division of labor

C. Comparative advantage

D. Opportunity cost

Correct Answer: B

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Question 12

A country's trade deficit is 100 billion. This means that the country imports 100 billion more than it exports. What is the term for this situation?

A. Trade surplus

Correct B. Trade deficit

C. Balance of trade

D. Current account deficit

Correct Answer: B

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Question 13

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to increase its output by 20%, what should it do to its inputs?

A. Increase labor by 10% and keep capital constant

B. Increase capital by 10% and keep labor constant

Correct C. Increase both labor and capital by 10%

D. Decrease both labor and capital by 10%

Correct Answer: C

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Question 14

A firm is considering two different marketing strategies: a high-low pricing strategy or a penetration pricing strategy. Which strategy is more likely to increase the firm's market share?

A. High-low pricing strategy

Correct B. Penetration pricing strategy

C. Price skimming strategy

D. Price discrimination strategy

Correct Answer: B

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Question 15

A country's transportation infrastructure includes roads, railways, and ports. Which of the following is a benefit of having a well-developed transportation infrastructure?

A. Increased trade with other countries

B. Improved access to markets

C. Reduced transportation costs

Correct D. All of the above

Correct Answer: D

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Question 16

A company's marketing strategy involves a mix of product, price, place, and promotion. Which of the following is NOT a key element of product?

A. Brand identity

B. Product features

C. Packaging

Correct D. Product life cycle

Correct Answer: D

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Question 17

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 16 units and labor is 4 units, what is the value of capital?

A. 4

Correct B. 8

C. 16

D. 32

Correct Answer: B

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Question 18

A company's sole trader has an annual turnover of ₦1,200,000. If the company's profit is 20% of its turnover, what is the company's profit?

Correct A. ₦240,000

B. ₦240,000

C. ₦240,000

D. ₦240,000

Correct Answer: A

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Question 19

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 16 units and labor is 4 units, what is the value of capital?

A. 4

Correct B. 8

C. 16

D. 32

Correct Answer: B

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Question 20

A company's sole trader has an annual turnover of ₦1,200,000. If the company's profit is 20% of its turnover, what is the company's profit?

Correct A. ₦240,000

B. ₦240,000

C. ₦240,000

D. ₦240,000

Correct Answer: A

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Question 21

A company is considering the introduction of a new product line. The product has a fixed cost of ₦500,000 and a variable cost of ₦200 per unit. If the selling price is ₦300 per unit, what is the break-even point in units?

A. 1,000 units

B. 1,500 units

Correct C. 2,000 units

D. 2,500 units

Correct Answer: C

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Question 22

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm is currently producing 16 units of output with 4 units of labor and 4 units of capital, what is the marginal product of labor?

A. 0.5

Correct B. 1

C. 2

D. 4

Correct Answer: B

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Question 23

A country's trade balance is given by the equation TB = X - M, where X is the value of exports and M is the value of imports. If the value of exports is ₦1,000,000 and the value of imports is ₦800,000, what is the trade balance?

A. ₦100,000

Correct B. ₦200,000

C. ₦300,000

D. ₦400,000

Correct Answer: B

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Question 24

A firm's revenue function is given by R = 2Q^2. If the firm is currently producing 4 units of output, what is the marginal revenue?

A. 8

Correct B. 16

C. 32

D. 64

Correct Answer: B

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Question 25

A firm's cost function is given by C = 2L + 3K. If the firm is currently producing 4 units of output with 2 units of labor and 1 unit of capital, what is the total cost?

A. 10

B. 12

Correct C. 14

D. 16

Correct Answer: C

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