Practice Post UTME UNILORIN commerce 2023 Past Questions

Question 1

In a perfectly competitive market, the supply curve is a straight line that intersects the demand curve at the equilibrium price and quantity. What is the name of this equilibrium price?

Correct A. Equilibrium Price

B. Market Price

C. Supply Price

D. Demand Price

Correct Answer: A

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Question 2

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the minimum cost of production?

A. ₦4000

Correct B. ₦5000

C. ₦6000

D. ₦8000

Correct Answer: B

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Question 3

A company is considering two marketing strategies: Strategy A, which involves a 10% increase in advertising expenditure, and Strategy B, which involves a 20% increase in sales promotion expenditure. If the company's current advertising expenditure is ₦100,000, and the current sales promotion expenditure is ₦50,000, what is the total increase in marketing expenditure under Strategy A?

Correct A. ₦10,000

B. ₦15,000

C. ₦20,000

D. ₦25,000

Correct Answer: A

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Question 4

A firm's inventory system is based on the Economic Order Quantity (EOQ) model. If the firm's demand rate is 100 units per month, the ordering cost is ₦50 per order, and the holding cost is ₦10 per unit per month, what is the optimal order quantity?

A. 100 units

Correct B. 200 units

C. 300 units

D. 400 units

Correct Answer: B

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Question 5

A company is considering two warehouse locations: Location A, which is 10 km away from the factory, and Location B, which is 20 km away from the factory. If the transportation cost per unit is ₦5 per km, and the holding cost per unit is ₦10 per unit per month, what is the total cost of storage for a 1000-unit inventory at Location A?

Correct A. ₦50,000

B. ₦60,000

C. ₦70,000

D. ₦80,000

Correct Answer: A

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Question 6

A company is considering two production methods for its new product: Method A, which requires an initial investment of ₦1.5 million and produces 10,000 units per month, and Method B, which requires an initial investment of ₦2.5 million and produces 20,000 units per month. If the company wants to produce at least 50,000 units per month and the cost of production is ₦500 per unit, which method should it choose?

A. Method A

Correct B. Method B

C. Both methods

D. Neither method

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 has been accused of making false claims about the benefits of its product. Which of the following is a legal requirement for advertising in Nigeria?

Correct A. The company must provide evidence to support its claims

B. The company must disclose any potential conflicts of interest

C. The company must obtain permission from the consumer protection agency before making any claims

D. The company must only make claims that are supported by scientific evidence

Correct Answer: A

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Question 8

A company is considering outsourcing its warehousing and stock control operations to a third-party logistics provider. Which of the following is a key benefit of outsourcing warehousing and stock control?

A. Reduced costs

B. Improved efficiency

C. Increased flexibility

Correct D. All of the above

Correct Answer: D

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Question 9

A consumer has purchased a product that has a defect. The consumer is seeking compensation from the manufacturer. Which of the following is a legal requirement for the manufacturer to provide compensation?

A. The manufacturer must provide compensation if the defect was caused by a manufacturing error

B. The manufacturer must provide compensation if the defect was caused by a design error

C. The manufacturer must provide compensation if the defect was caused by a third-party supplier

Correct D. The manufacturer must provide compensation if the consumer can prove that the defect was caused by the manufacturer

Correct Answer: D

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Question 10

A company is considering investing in a new production method that uses advanced technology. Which of the following is a key benefit of investing in advanced technology?

A. Increased efficiency

B. Improved product quality

C. Reduced costs

Correct D. All of the above

Correct Answer: D

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Question 11

A company's sole trader is considering expanding its operations to include a new product line. However, this expansion would require an initial investment of ₦1.5 million. If the company's current cash balance is ₦2.5 million and it has a credit limit of ₦3 million, what is the maximum amount the company can borrow from the bank to finance the expansion?

A. ₦1 million

B. ₦1.2 million

C. ₦1.5 million

Correct D. ₦2 million

Correct Answer: D

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Question 12

A consumer protection agency has received a complaint about a company's unfair business practices. The agency has gathered evidence that the company has been engaging in price-fixing, which is a violation of the Consumer Protection Act. What is the most appropriate action the agency should take?

A. Issue a warning to the company

B. Impose a fine on the company

C. Suspend the company's business license

Correct D. Prosecute the company's directors

Correct Answer: D

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Question 13

A company is considering investing in a new warehouse to store its inventory. The company has estimated that the warehouse will cost ₦10 million to build and will require an annual maintenance cost of ₦500,000. If the company expects to sell its products at a rate of 10,000 units per year and each unit sells for ₦100, what is the minimum number of years the company must operate at this rate to break even?

A. 5 years

B. 6 years

Correct C. 7 years

D. 8 years

Correct Answer: C

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Question 14

A company is planning to transport its goods from Lagos to Abuja using a combination of road and rail. The distance between Lagos and Abuja is 700 km, and the company expects to transport 10,000 kg of goods. If the cost of transporting 1 kg of goods by road is ₦5 and the cost of transporting 1 kg of goods by rail is ₦3, what is the total cost of transporting the goods?

A. ₦35,000

B. ₦40,000

Correct C. ₦45,000

D. ₦50,000

Correct Answer: C

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Question 15

A company is considering expanding its operations to include a new product line. However, this expansion would require an initial investment of ₦2 million. If the company's current cash balance is ₦1.5 million and it has a credit limit of ₦2.5 million, what is the maximum amount the company can borrow from the bank to finance the expansion?

A. ₦500,000

B. ₦1 million

C. ₦1.5 million

Correct D. ₦2 million

Correct Answer: D

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Question 16

A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a requirement for registration?

A. Obtain a Tax Identification Number (TIN)

B. Register with the Corporate Affairs Commission (CAC)

C. Obtain a Business Name Certificate

Correct D. Obtain a Certificate of Incorporation

Correct Answer: D

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Question 17

A company's Memorandum and Articles of Association are filed with the Corporate Affairs Commission (CAC). What is the purpose of these documents?

A. To provide information about the company's business activities

B. To outline the company's organizational structure

Correct C. To specify the company's objectives and powers

D. To provide information about the company's shareholders

Correct Answer: C

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Question 18

A consumer purchases a product from a retailer, but the product is defective. The consumer sues the retailer for breach of contract. What is the retailer's defense?

A. The consumer is estopped from claiming damages because they failed to inspect the product before purchase

B. The retailer is not liable for the defect because it was not a party to the contract between the manufacturer and the consumer

C. The retailer is not liable for the defect because it was not a breach of the terms of the contract

Correct D. The retailer is not liable for the defect because it was not a breach of the implied terms of the contract

Correct Answer: D

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Question 19

A company's Articles of Association provide that the company shall be managed by a Board of Directors. What is the primary function of the Board of Directors?

A. To manage the company's day-to-day activities

Correct B. To make strategic decisions on behalf of the company

C. To oversee the company's financial management

D. To represent the company in legal proceedings

Correct Answer: B

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Question 20

A consumer purchases a product from a retailer, but the product is defective. The consumer sues the retailer for breach of contract. What is the remedy available to the consumer?

Correct A. Damages

B. Specific performance

C. Rescission

D. Injunction

Correct Answer: A

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Question 21

A company's sole trader has a warehouse with a capacity of 10,000 units. The company's stock control system uses a first-in-first-out (FIFO) method. If the warehouse is currently 70% full, and 500 units are received, what is the new percentage of the warehouse that is full?

A. 60%

Correct B. 65%

C. 70%

D. 75%

Correct Answer: B

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Question 22

A customer deposits ₦10,000 into their bank account. The bank offers a 5% interest rate per annum compounded annually. What is the amount in the customer's account after 2 years?

A. ₦10,522.50

Correct B. ₦10,525.00

C. ₦10,527.50

D. ₦10,530.00

Correct Answer: B

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Question 23

A sole trader has a business income of ₦500,000 and business expenses of ₦200,000. What is the sole trader's profit before tax?

Correct A. ₦300,000

B. ₦300,500

C. ₦300,000

D. ₦300,500

Correct Answer: A

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Question 24

A company's business units are organized into departments. The company has a total of 20 employees, with 8 employees in the marketing department, 6 employees in the sales department, and 6 employees in the production department. What is the ratio of employees in the marketing department to the total number of employees?

A. 1:2

Correct B. 1:3

C. 1:4

D. 1:5

Correct Answer: B

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Question 25

A consumer purchases a product for ₦10,000 and pays a 5% sales tax. What is the total amount paid by the consumer?

A. ₦10,500

Correct B. ₦10,525

C. ₦10,550

D. ₦10,575

Correct Answer: B

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