Practice Post UTME UNILAG commerce 2017 Past Questions

Question 1

The concept of risk management in insurance involves identifying and assessing potential risks, then developing strategies to mitigate or transfer them. Which of the following is NOT a type of risk management strategy?

A. Avoidance

B. Transfer

C. Mitigation

Correct D. Acceptance

Correct Answer: D

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Question 2

A company has a warehouse with a capacity of 10,000 units. It receives an order for 8,000 units. If the warehouse is currently 70% full, what is the new percentage of capacity after fulfilling the order?

Correct A. 60%

B. 65%

C. 70%

D. 75%

Correct Answer: A

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Question 3

A bank offers a loan of ₦1,000,000 at an interest rate of 12% per annum. If the loan is repaid in 5 years, what is the total interest paid?

A. ₦120,000

B. ₦150,000

Correct C. ₦180,000

D. ₦200,000

Correct Answer: C

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Question 4

A company exports 100 units of goods to a foreign country. The cost of transportation is ₦5,000 per unit. If the exchange rate is 1 USD = ₦200, and the company earns a profit of 20% on the sale of each unit, what is the total profit in USD?

A. 1,000

Correct B. 1,200

C. 1,500

D. 2,000

Correct Answer: B

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Question 5

A company has a stock of 500 units of goods, with a selling price of ₦10,000 per unit. If the company wants to maintain a stock level of 70% of its capacity, what is the minimum number of units that must be sold?

A. 200 units

B. 250 units

Correct C. 300 units

D. 350 units

Correct Answer: C

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Question 6

A company is considering two marketing strategies: one that targets a niche market with a high-end product and another that targets a mass market with a low-end product. Which strategy is more likely to result in higher sales and profits?

A. Targeting a niche market with a high-end product

Correct B. Targeting a mass market with a low-end product

C. Targeting a niche market with a low-end product

D. Targeting a mass market with a high-end product

Correct Answer: B

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Question 7

A consumer protection agency is investigating a complaint about a company's advertising practices. The company claims that its advertisements are truthful and not misleading. However, the agency discovers that the company has been using a technique called 'puffery' to make its products appear more attractive than they actually are. What is the legal consequence of the company's actions?

Correct A. The company is liable for damages and must pay a fine

B. The company is not liable for damages, but must stop using puffery in its advertisements

C. The company is liable for damages, but only if the consumer can prove that they were misled

D. The company is not liable for damages, as puffery is a legitimate marketing technique

Correct Answer: A

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Question 8

A company is considering outsourcing its production to a foreign country. What are the potential benefits and drawbacks of this decision?

Correct A. Benefits: lower labor costs, increased efficiency; Drawbacks: loss of control, potential quality issues

B. Benefits: increased market share, improved brand image; Drawbacks: higher transportation costs, potential cultural differences

C. Benefits: improved supply chain management, reduced risk; Drawbacks: loss of jobs, potential trade barriers

D. Benefits: increased flexibility, improved innovation; Drawbacks: higher costs, potential quality issues

Correct Answer: A

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Question 9

A company is considering implementing a just-in-time (JIT) inventory system. What are the potential benefits and drawbacks of this decision?

Correct A. Benefits: reduced inventory costs, improved efficiency; Drawbacks: increased risk of stockouts, potential quality issues

B. Benefits: improved supply chain management, reduced waste; Drawbacks: higher transportation costs, potential cultural differences

C. Benefits: increased flexibility, improved innovation; Drawbacks: higher costs, potential quality issues

D. Benefits: improved customer service, increased sales; Drawbacks: higher inventory costs, potential quality issues

Correct Answer: A

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Question 10

A company is considering implementing a total quality management (TQM) system. What are the potential benefits and drawbacks of this decision?

Correct A. Benefits: improved quality, increased customer satisfaction; Drawbacks: higher costs, potential cultural differences

B. Benefits: improved efficiency, reduced waste; Drawbacks: higher transportation costs, potential quality issues

C. Benefits: increased flexibility, improved innovation; Drawbacks: higher costs, potential quality issues

D. Benefits: improved supply chain management, reduced risk; Drawbacks: loss of control, potential quality issues

Correct Answer: A

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Question 11

The Consumer Protection Act of 1999 provides for the establishment of the National Consumer Protection Agency. What is the primary function of this agency?

Correct A. To investigate consumer complaints and take enforcement action against erring businesses

B. To provide education and awareness programs for consumers on their rights and responsibilities

C. To regulate the activities of businesses and ensure compliance with consumer protection laws

D. To provide compensation to consumers who have suffered losses due to business malpractices

Correct Answer: A

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Question 12

A company has a sole proprietorship business structure. What are the advantages of this structure?

A. Easy to set up and maintain, unlimited personal liability, and passivity

Correct B. Easy to set up and maintain, unlimited personal liability, and flexibility

C. Easy to set up and maintain, limited personal liability, and passivity

D. Easy to set up and maintain, limited personal liability, and flexibility

Correct Answer: B

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Question 13

A bank has a credit risk of 5% and a liquidity risk of 3%. What is the overall risk of the bank?

Correct A. 8%

B. 7%

C. 6%

D. 5%

Correct Answer: A

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Question 14

A company is considering exporting its products to a foreign market. What are the advantages of exporting?

Correct A. Increased revenue, reduced competition, and improved brand image

B. Increased revenue, reduced competition, and improved market share

C. Increased revenue, reduced competition, and improved brand reputation

D. Increased revenue, reduced competition, and improved market position

Correct Answer: A

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Question 15

A company has a sole proprietorship business structure. What are the disadvantages of this structure?

Correct A. Easy to set up and maintain, unlimited personal liability, and passivity

B. Easy to set up and maintain, unlimited personal liability, and flexibility

C. Easy to set up and maintain, limited personal liability, and passivity

D. Easy to set up and maintain, limited personal liability, and flexibility

Correct Answer: A

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Question 16

A company's marketing strategy involves a mix of push and pull strategies. Which of the following best describes the primary goal of a pull strategy?

A. To increase the company's market share

B. To create awareness about the product among the target audience

Correct C. To encourage the target audience to make a purchase

D. To reduce the company's production costs

Correct Answer: C

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Question 17

A firm's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm wants to produce 100 units of output, and the labor input is 16 units, what is the required capital input?

A. 25

Correct B. 30

C. 35

D. 40

Correct Answer: B

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Question 18

A consumer protection law requires that all goods sold in a particular market must be accompanied by a warranty that guarantees the product's quality for a period of one year. Which of the following is a consequence of this law?

A. The consumer has the right to return the product within 30 days of purchase

Correct B. The manufacturer is liable for any defects in the product for a period of one year

C. The consumer must pay a premium for the warranty

D. The law does not apply to imported goods

Correct Answer: B

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Question 19

A firm's marketing mix involves a product that is differentiated from its competitors through a unique feature. Which of the following best describes this feature?

A. Price

B. Place

C. Promotion

Correct D. Product

Correct Answer: D

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Question 20

A firm's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm wants to produce 100 units of output, and the capital input is 25 units, what is the required labor input?

Correct A. 16

B. 20

C. 25

D. 30

Correct Answer: A

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Question 21

A company's production process involves the following steps: raw material extraction, processing, and packaging. If the company's production process is described as a flowchart, which of the following best describes the type of flowchart used?

Correct A. Process Flowchart

B. Network Diagram

C. Gantt Chart

D. Bar Chart

Correct Answer: A

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Question 22

A firm's marketing strategy involves the use of social media platforms to promote its products. Which of the following best describes the type of marketing strategy being used?

A. Push Marketing

B. Pull Marketing

C. Relationship Marketing

Correct D. Interactive Marketing

Correct Answer: D

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Question 23

A company's warehouse is designed to store goods in a way that minimizes the risk of damage and loss. Which of the following best describes the type of storage system being used?

Correct A. First-In-First-Out (FIFO) System

B. Last-In-First-Out (LIFO) System

C. First-Come-First-Served (FCFS) System

D. Just-In-Time (JIT) System

Correct Answer: A

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Question 24

A firm's production process involves the use of a machine that can produce 100 units of a product per hour. If the machine operates for 8 hours a day, how many units of the product will be produced in a day?

Correct A. 800

B. 1000

C. 1200

D. 1600

Correct Answer: A

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Question 25

A company's insurance policy covers losses due to fire, theft, and natural disasters. Which of the following best describes the type of insurance policy being used?

Correct A. All-Risk Policy

B. Specified Perils Policy

C. Blanket Policy

D. Excess Policy

Correct Answer: A

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