Practice Post UTME UNIOSUN commerce 2017 Past Questions

Question 1

A sole trader's business is considered a separate legal entity from its owner. What is the primary reason for this separation?

Correct A. Liability

B. Taxation

C. Ownership

D. Management

Correct Answer: A

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Question 2

A company's articles of association are a set of rules that govern the company's internal management. What is the primary purpose of these articles?

A. To define the company's objectives

Correct B. To outline the company's management structure

C. To specify the company's share capital

D. To regulate the company's financial transactions

Correct Answer: B

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Question 3

A warehouse's inventory management system uses the first-in-first-out (FIFO) method to track stock levels. What is the primary advantage of this method?

A. Reduced stock obsolescence

Correct B. Improved stock turnover

C. Enhanced stock visibility

D. Simplified stock reconciliation

Correct Answer: B

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Question 4

A consumer protection law requires businesses to provide clear and accurate product labeling. What is the primary purpose of this labeling?

Correct A. To inform consumers about product ingredients

B. To warn consumers about product hazards

C. To promote product sales

D. To reduce product returns

Correct Answer: A

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Question 5

A business's transport management system uses a just-in-time (JIT) delivery method to reduce inventory costs. What is the primary benefit of this method?

A. Reduced transportation costs

Correct B. Improved inventory turnover

C. Enhanced supply chain visibility

D. Simplified inventory management

Correct Answer: B

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Question 6

In a perfectly competitive market, the supply curve is typically represented by the marginal cost curve. What is the implication of this relationship on the firm's profit-maximizing output?

A. The firm will produce at the lowest point on the marginal cost curve.

Correct B. The firm will produce at the point where the marginal cost curve intersects the demand curve.

C. The firm will produce at the point where the marginal cost curve intersects the average variable cost curve.

D. The firm will produce at the point where the marginal cost curve intersects the average fixed cost curve.

Correct Answer: B

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Question 7

A firm is considering two different production processes to produce a product. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit. Process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the firm produces 10,000 units, what is the total cost of production for each process?

Correct A. Process A: ₦1,550,000; Process B: ₦1,350,000

B. Process A: ₦1,350,000; Process B: ₦1,550,000

C. Process A: ₦1,500,000; Process B: ₦1,400,000

D. Process A: ₦1,400,000; Process B: ₦1,500,000

Correct Answer: A

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Question 8

A firm is considering two different marketing strategies to promote its product. Strategy A involves a ₦500,000 advertising campaign and a 10% discount on the product price. Strategy B involves a ₦200,000 advertising campaign and a 20% discount on the product price. If the firm sells 5,000 units of the product, what is the total revenue for each strategy?

Correct A. Strategy A: ₦2,500,000; Strategy B: ₦2,000,000

B. Strategy A: ₦2,000,000; Strategy B: ₦2,500,000

C. Strategy A: ₦2,200,000; Strategy B: ₦2,300,000

D. Strategy A: ₦2,300,000; Strategy B: ₦2,200,000

Correct Answer: A

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Question 9

A firm is considering two different transportation options to deliver its products to customers. Option A involves a ₦50,000 fixed cost and a ₦10 per unit transportation cost. Option B involves a ₦30,000 fixed cost and a ₦15 per unit transportation cost. If the firm delivers 2,000 units of the product, what is the total transportation cost for each option?

Correct A. Option A: ₦20,000; Option B: ₦30,000

B. Option A: ₦30,000; Option B: ₦20,000

C. Option A: ₦25,000; Option B: ₦25,000

D. Option A: ₦30,000; Option B: ₦30,000

Correct Answer: A

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Question 10

A firm is considering two different communication strategies to promote its product. Strategy A involves a ₦200,000 advertising campaign and a 5% discount on the product price. Strategy B involves a ₦300,000 advertising campaign and a 10% discount on the product price. If the firm sells 3,000 units of the product, what is the total revenue for each strategy?

Correct A. Strategy A: ₦2,100,000; Strategy B: ₦2,700,000

B. Strategy A: ₦2,700,000; Strategy B: ₦2,100,000

C. Strategy A: ₦2,400,000; Strategy B: ₦2,400,000

D. Strategy A: ₦2,600,000; Strategy B: ₦2,600,000

Correct Answer: A

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Question 11

The concept of 'Risk Management' in Insurance involves identifying, assessing, and prioritizing potential risks to minimize their impact. Which of the following is NOT a key step in the risk management process?

A. Risk Identification

B. Risk Assessment

C. Risk Prioritization

Correct D. Risk Mitigation

Correct Answer: D

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Question 12

A company's marketing strategy involves creating a brand image that appeals to a specific target audience. Which of the following is a key element of a brand image?

A. Product Features

B. Price Strategy

Correct C. Brand Personality

D. Distribution Channels

Correct Answer: C

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Question 13

A consumer protection law aims to safeguard consumers from unfair business practices. Which of the following is a key provision of consumer protection laws?

A. Right to Refund

B. Right to Compensation

Correct C. Right to Information

D. Right to Sue

Correct Answer: C

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Question 14

A company's business law obligations include complying with relevant regulations and laws. Which of the following is a key regulation that companies must comply with?

A. Consumer Protection Act

Correct B. Companies Act

C. Taxation Act

D. Environmental Protection Act

Correct Answer: B

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Question 15

A company's introduction to commerce involves understanding the fundamental principles of business operations. Which of the following is a key principle of business operations?

A. Efficiency

Correct B. Effectiveness

C. Economy

D. Equity

Correct Answer: B

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Question 16

A company's marketing strategy involves creating a sense of urgency among customers to purchase its products. This strategy is an example of which of the following?

A. Scarcity

B. Perceived Value

Correct C. Limited Time Offer

D. Product Differentiation

Correct Answer: C

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Question 17

A firm's revenue is ₦1,000,000. Its total fixed costs are ₦500,000 and its variable costs are ₦200,000. What is the firm's break-even point?

A. ₦250,000

Correct B. ₦500,000

C. ₦750,000

D. ₦1,000,000

Correct Answer: B

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Question 18

A company has a warehouse with a capacity of 10,000 units. It receives a shipment of 5,000 units. What is the new capacity of the warehouse?

A. 5,000 units

B. 10,000 units

Correct C. 15,000 units

D. 20,000 units

Correct Answer: C

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Question 19

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

Correct A. ₦100,000

B. ₦500,000

C. ₦750,000

D. ₦1,000,000

Correct Answer: A

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Question 20

A company's insurance policy has a deductible of ₦50,000. If the company suffers a loss of ₦200,000, how much will it receive from the insurance company?

A. ₦150,000

B. ₦200,000

C. ₦250,000

Correct D. ₦300,000

Correct Answer: D

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Question 21

In a perfectly competitive market, the supply curve is downward-sloping because of the law of increasing marginal opportunity cost. What is the primary reason for this downward-sloping supply curve?

Correct A. The law of increasing marginal opportunity cost

B. The law of diminishing marginal returns

C. The law of supply and demand

D. The law of diminishing marginal utility

Correct Answer: A

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Question 22

A company is considering two different marketing strategies: a push strategy and a pull strategy. What is the primary difference between these two strategies?

A. A push strategy focuses on the consumer, while a pull strategy focuses on the product

Correct B. A push strategy focuses on the product, while a pull strategy focuses on the consumer

C. A push strategy is more expensive than a pull strategy

D. A pull strategy is more effective than a push strategy

Correct Answer: B

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Question 23

A firm is considering two different transportation modes: trucking and rail. What is the primary advantage of rail transportation?

A. Rail transportation is faster than trucking

B. Rail transportation is more expensive than trucking

Correct C. Rail transportation is more environmentally friendly than trucking

D. Rail transportation is more reliable than trucking

Correct Answer: C

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Question 24

A bank is considering two different investment options: a high-risk, high-return investment and a low-risk, low-return investment. What is the primary consideration for the bank?

Correct A. The bank's risk tolerance

B. The bank's return expectations

C. The bank's liquidity needs

D. The bank's regulatory requirements

Correct Answer: A

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Question 25

A company is considering two different warehousing options: a public warehouse and a private warehouse. What is the primary advantage of a private warehouse?

A. A private warehouse is more secure than a public warehouse

B. A private warehouse is more expensive than a public warehouse

Correct C. A private warehouse is more flexible than a public warehouse

D. A private warehouse is more reliable than a public warehouse

Correct Answer: C

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