POST UTME UNILAG 2021 Commerce | Objective

Are you preparing for POST UTME UNILAG exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2021 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
In a perfectly competitive market, the supply curve is typically represented by the?
A. Demand Curve
Correct B. Supply Curve
C. Equilibrium Price
D. Market Equilibrium

Correct Answer: B

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Question 2
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the price of labor is 10 per unit and the price of capital is 20 per unit, what is the optimal level of labor and capital?
Correct A. L = 100, K = 50
B. L = 50, K = 100
C. L = 200, K = 100
D. L = 100, K = 200

Correct Answer: A

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Question 3
A company is considering two different marketing strategies. Strategy A involves a 10% increase in advertising expenditure, while Strategy B involves a 5% increase in sales force. Which strategy is more likely to increase sales?
Correct A. Strategy A
B. Strategy B
C. Both strategies are equally effective
D. Neither strategy is effective

Correct Answer: A

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Question 4
A warehouse has a capacity of 1000 units and a storage cost of 5 per unit per year. The demand for the product is 500 units per year. What is the optimal inventory level?
A. 500 units
Correct B. 750 units
C. 1000 units
D. 1250 units

Correct Answer: B

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Question 5
A company has a 10% chance of experiencing a loss of 100,000 and a 90% chance of experiencing a loss of 50,000. What is the expected loss?
A. 50,000
Correct B. 55,000
C. 60,000
D. 65,000

Correct Answer: B

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Question 6
In a just-in-time (JIT) inventory system, what is the primary goal of the warehouse manager?
A. To minimize inventory costs
B. To maximize storage capacity
Correct C. To reduce lead times
D. To increase order quantities

Correct Answer: C

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Question 7
A company uses a third-party logistics provider to manage its warehousing and transportation operations. What is the primary benefit of this arrangement?
Correct A. Reduced costs
B. Improved service levels
C. Increased flexibility
D. Enhanced security

Correct Answer: A

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Question 8
A firm is considering implementing a vendor-managed inventory (VMI) system. What is the primary advantage of this approach?
A. Improved forecasting
B. Increased inventory accuracy
C. Reduced inventory levels
Correct D. Enhanced supplier relationships

Correct Answer: D

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Question 9
A company uses a total quality management (TQM) approach to manage its inventory. What is the primary goal of this approach?
A. To minimize inventory costs
B. To maximize storage capacity
C. To reduce lead times
Correct D. To achieve continuous improvement

Correct Answer: D

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Question 10
A firm is considering implementing a radio frequency identification (RFID) system to track its inventory. What is the primary advantage of this approach?
Correct A. Improved inventory accuracy
B. Increased inventory levels
C. Reduced inventory costs
D. Enhanced security

Correct Answer: A

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Question 11
A firm's inventory turnover ratio is calculated as the cost of goods sold divided by the average inventory. If the cost of goods sold is ₦120,000 and the average inventory is ₦30,000, what is the inventory turnover ratio?
A. 4
Correct B. 5
C. 6
D. 7

Correct Answer: B

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Question 12
A company's revenue is ₦1,500,000, and its cost of goods sold is ₦1,200,000. What is the gross profit?
Correct A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: A

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Question 13
A firm's accounts receivable turnover ratio is calculated as the net sales divided by the average accounts receivable. If the net sales are ₦900,000 and the average accounts receivable is ₦60,000, what is the accounts receivable turnover ratio?
A. 15
Correct B. 16
C. 17
D. 18

Correct Answer: B

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Question 14
A company's total assets are ₦2,500,000, and its total liabilities are ₦1,500,000. What is the equity?
A. ₦1,000,000
Correct B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: B

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Question 15
A firm's debt-to-equity ratio is calculated as the total liabilities divided by the equity. If the total liabilities are ₦1,500,000 and the equity is ₦1,000,000, what is the debt-to-equity ratio?
Correct A. 1.5
B. 2
C. 2.5
D. 3

Correct Answer: A

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Question 16
What is the primary goal of a firm's production function in the context of international trade?
A. To maximize profits
B. To minimize costs
Correct C. To achieve economies of scale
D. To increase market share

Correct Answer: C

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Question 17
A company is considering exporting its products to a foreign market. What is the primary factor that determines the success of this venture?
Correct A. Market demand
B. Competition
C. Government policies
D. Transportation costs

Correct Answer: A

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Question 18
A firm is considering investing in a new production technology. What is the primary benefit of this investment?
Correct A. Increased productivity
B. Improved product quality
C. Reduced costs
D. Increased market share

Correct Answer: A

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Question 19
A company is considering advertising its products in a foreign market. What is the primary goal of this advertising campaign?
A. To increase brand awareness
B. To create a positive image
Correct C. To increase sales
D. To reduce costs

Correct Answer: C

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Question 20
A firm is considering investing in a new transportation system. What is the primary benefit of this investment?
A. Reduced transportation costs
Correct B. Improved delivery times
C. Increased market share
D. Improved product quality

Correct Answer: B

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Question 21
A company's financial statements show a decrease in revenue and an increase in expenses. What is the likely effect on its cash flow?
A. Increase in cash flow
Correct B. Decrease in cash flow
C. No effect on cash flow
D. Uncertain effect on cash flow

Correct Answer: B

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Question 22
A firm's marketing strategy involves creating a new product line. Which of the following is a key consideration in this decision?
A. Market research
B. Competitor analysis
C. Product life cycle
Correct D. All of the above

Correct Answer: D

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Question 23
A bank's investment portfolio consists of stocks, bonds, and mutual funds. What is the primary goal of this portfolio?
A. Maximizing returns
B. Minimizing risk
C. Diversifying investments
Correct D. All of the above

Correct Answer: D

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Question 24
A company's supply chain involves multiple stages, including procurement, production, and distribution. Which of the following is a key challenge in managing this supply chain?
A. Inventory management
B. Transportation costs
C. Quality control
Correct D. All of the above

Correct Answer: D

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Question 25
A firm's marketing strategy involves creating a new product line. Which of the following is a key consideration in this decision?
A. Market research
B. Competitor analysis
C. Product life cycle
Correct D. All of the above

Correct Answer: D

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