Practice Post UTME UNILORIN commerce 2022 Past Questions

Question 1

In a warehouse management system, what is the primary benefit of using a first-in-first-out (FIFO) inventory management strategy?

A. Reduced storage costs

Correct B. Improved inventory turnover

C. Enhanced customer satisfaction

D. Increased stock obsolescence

Correct Answer: B

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Question 2

A company's financial statements show a decrease in revenue and an increase in expenses. What is the likely effect on the company's profit margin?

A. Increase in profit margin

Correct B. Decrease in profit margin

C. No change in profit margin

D. Uncertain effect on profit margin

Correct Answer: B

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Question 3

A consumer purchases a product with a price of ₦1,500 and a 10% discount. What is the amount of the discount?

Correct A. ₦150

B. ₦150.00

C. ₦150.00

D. ₦150.00

Correct Answer: A

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Question 4

A company's marketing strategy involves targeting a specific demographic with a product that meets their needs. What type of marketing strategy is this?

A. Segmentation

B. Targeting

C. Positioning

Correct D. All of the above

Correct Answer: D

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Question 5

A bank's cash reserve ratio is 10%. If the bank has ₦1,000,000 in deposits, how much cash must it hold in reserve?

Correct A. ₦100,000

B. ₦100,000.00

C. ₦100,000.00

D. ₦100,000.00

Correct Answer: A

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Question 6

A company is considering the introduction of a new product line. The product has a high fixed cost of ₦5 million and a variable cost of ₦10,000 per unit. The selling price of the product is ₦20,000 per unit. If the company expects to sell 10,000 units, what is the minimum revenue required to break even?

A. ₦50 million

B. ₦60 million

Correct C. ₦70 million

D. ₦80 million

Correct Answer: C

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Question 7

A firm is considering the introduction of a new product line. The product has a high fixed cost of ₦5 million and a variable cost of ₦10,000 per unit. The selling price of the product is ₦20,000 per unit. If the company expects to sell 10,000 units, what is the minimum revenue required to break even?

A. ₦50 million

B. ₦60 million

Correct C. ₦70 million

D. ₦80 million

Correct Answer: C

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Question 8

A company is considering the introduction of a new product line. The product has a high fixed cost of ₦5 million and a variable cost of ₦10,000 per unit. The selling price of the product is ₦20,000 per unit. If the company expects to sell 10,000 units, what is the minimum revenue required to break even?

A. ₦50 million

B. ₦60 million

Correct C. ₦70 million

D. ₦80 million

Correct Answer: C

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Question 9

A firm is considering the introduction of a new product line. The product has a high fixed cost of ₦5 million and a variable cost of ₦10,000 per unit. The selling price of the product is ₦20,000 per unit. If the company expects to sell 10,000 units, what is the minimum revenue required to break even?

A. ₦50 million

B. ₦60 million

Correct C. ₦70 million

D. ₦80 million

Correct Answer: C

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Question 10

A company is considering the introduction of a new product line. The product has a high fixed cost of ₦5 million and a variable cost of ₦10,000 per unit. The selling price of the product is ₦20,000 per unit. If the company expects to sell 10,000 units, what is the minimum revenue required to break even?

A. ₦50 million

B. ₦60 million

Correct C. ₦70 million

D. ₦80 million

Correct Answer: C

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Question 11

In a perfectly competitive market, the law of supply states that the quantity of a good supplied is inversely related to its price. What is the slope of the supply curve?

Correct A. -1

B. 1

C. 0

D. 2

Correct Answer: A

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Question 12

A company is considering investing in a new project with the following cash flows: Year 1: -₦100,000, Year 2: ₦50,000, Year 3: ₦100,000. What is the net present value of the project if the discount rate is 10%?

A. ₦20,000

B. ₦30,000

Correct C. ₦40,000

D. ₦50,000

Correct Answer: C

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Question 13

A consumer is considering buying a product that costs ₦1,000. The consumer has a budget of ₦2,000 and is willing to spend up to 50% of their income on the product. What is the maximum amount the consumer is willing to pay for the product?

A. ₦500

Correct B. ₦750

C. ₦1,000

D. ₦1,250

Correct Answer: B

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Question 14

A company is considering entering a new market. The company has estimated the following demand and supply curves for the market: Demand: Qd = 100 - 2P, Supply: Qs = 2P - 100. What is the equilibrium price and quantity in the market?

A. P = ₦50, Q = 100

Correct B. P = ₦75, Q = 150

C. P = ₦100, Q = 200

D. P = ₦125, Q = 250

Correct Answer: B

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Question 15

A firm is considering investing in a new project with the following cash flows: Year 1: ₦100,000, Year 2: ₦150,000, Year 3: ₦200,000. What is the internal rate of return (IRR) of the project?

A. 20%

B. 25%

Correct C. 30%

D. 35%

Correct Answer: C

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Question 16

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. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 100 units of good Y.

Correct B. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 50 units of good Y.

C. Country A produces 50 units of good X and 100 units of good Y, while Country B produces 100 units of good X and 50 units of good Y.

D. Country A produces 50 units of good X and 100 units of good Y, while Country B produces 50 units of good X and 50 units of good Y.

Correct Answer: B

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Question 17

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 16 units and the number of workers (L) is 4, how many units of capital (K) are required?

A. 4

Correct B. 8

C. 16

D. 32

Correct Answer: B

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Question 18

A company's cash flow statement shows a net cash inflow of ₦1,500,000. If the company's current assets are ₦2,500,000 and its current liabilities are ₦1,000,000, what is the company's working capital?

Correct A. ₦1,000,000

B. ₦1,500,000

C. ₦2,000,000

D. ₦2,500,000

Correct Answer: A

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Question 19

A firm's revenue function is given by R = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is its revenue?

A. ₦1,600

Correct B. ₦1,800

C. ₦2,000

D. ₦2,200

Correct Answer: B

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Question 20

A company's balance sheet shows total assets of ₦5,000,000 and total liabilities of ₦2,000,000. What is the company's equity?

Correct A. ₦3,000,000

B. ₦3,500,000

C. ₦4,000,000

D. ₦4,500,000

Correct Answer: A

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Question 21

A firm's cost function is given by C = 50 + 2x, where x is the number of units produced. If the firm produces 20 units, what is its total cost?

A. ₦100

Correct B. ₦150

C. ₦200

D. ₦250

Correct Answer: B

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Question 22

A company's income statement shows a net income of ₦1,000,000. If the company's total assets are ₦5,000,000 and its total liabilities are ₦2,000,000, what is the company's return on equity?

A. 20%

Correct B. 25%

C. 30%

D. 35%

Correct Answer: B

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Question 23

A firm's demand function is given by Q = 100 - 2P, where P is the price of the good. If the firm wants to maximize its revenue, what price should it charge?

A. ₦20

B. ₦30

Correct C. ₦40

D. ₦50

Correct Answer: C

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Question 24

A firm's production function is given by Q = 2L^0.5H^0.5, where Q is the quantity produced, L is the number of labor hours, and H is the number of hours of capital used. If the firm wants to increase its production by 20% while keeping the labor hours constant at 100, how many more hours of capital should it use?

A. 50

B. 75

Correct C. 100

D. 125

Correct Answer: C

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Question 25

A company is considering two different marketing strategies for its new product. Strategy A involves a high initial investment of ₦10 million, but it is expected to generate ₦20 million in revenue per year for 5 years. Strategy B involves a lower initial investment of ₦5 million, but it is expected to generate ₦15 million in revenue per year for 3 years. Which strategy has a higher net present value (NPV)?

Correct A. Strategy A

B. Strategy B

C. Both strategies have the same NPV

D. Neither strategy has a higher NPV

Correct Answer: A

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