Practice Post UTME UNIOSUN commerce 2018 Past Questions

Question 1

A company's risk management strategy involves diversification of its investments across various asset classes. If the company invests ₦1,000,000 in stocks, ₦500,000 in bonds, and ₦300,000 in real estate, what is the expected return on investment (ROI) if the annual returns on stocks, bonds, and real estate are 10%, 5%, and 8% respectively?

Correct A. ( rac{(1.10)(1000000) + (1.05)(500000) + (1.08)(300000)}{1000000} )

B. ( rac{(1.10)(1000000) + (1.05)(500000) + (1.08)(300000)}{2000000} )

C. ( rac{(1.10)(1000000) + (1.05)(500000) + (1.08)(300000)}{3000000} )

D. ( rac{(1.10)(1000000) + (1.05)(500000) + (1.08)(300000)}{4000000} )

Correct Answer: A

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Question 2

A consumer protection agency has received complaints about a company's unfair business practices. The agency has collected evidence of the company's actions, including a video recording of a sales representative making false claims about a product. Which of the following is the most appropriate action for the agency to take?

Correct A. Issue a warning to the company and require them to cease the unfair practice

B. File a lawsuit against the company for damages

C. Refer the matter to the relevant regulatory authority

D. Dismiss the complaint as unfounded

Correct Answer: A

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Question 3

A company has a warehouse with a capacity of 10,000 units. The company receives an order for 5,000 units, but the warehouse is already 70% full. What is the maximum number of units that the company can accept without exceeding the warehouse's capacity?

Correct A. ( 10000 - (0.7)(10000) )

B. ( 10000 - (0.3)(10000) )

C. ( 10000 - (0.5)(10000) )

D. ( 10000 - (0.9)(10000) )

Correct Answer: A

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Question 4

A bank has a loan portfolio with a total value of ₦1,500,000. The bank's risk management strategy involves diversification of its loans across various sectors. If the bank has loans worth ₦500,000 in the manufacturing sector, ₦300,000 in the agricultural sector, and ₦700,000 in the services sector, what is the expected return on investment (ROI) if the annual returns on manufacturing, agricultural, and services sectors are 12%, 10%, and 8% respectively?

Correct A. ( rac{(1.12)(500000) + (1.10)(300000) + (1.08)(700000)}{1500000} )

B. ( rac{(1.12)(500000) + (1.10)(300000) + (1.08)(700000)}{2000000} )

C. ( rac{(1.12)(500000) + (1.10)(300000) + (1.08)(700000)}{2500000} )

D. ( rac{(1.12)(500000) + (1.10)(300000) + (1.08)(700000)}{3000000} )

Correct Answer: A

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Question 5

A company's insurance policy covers losses due to fire, theft, and natural disasters. The policy has a deductible of ₦50,000 and a maximum payout of ₦200,000. If the company suffers a loss of ₦150,000 due to fire, what is the amount that the insurance company will pay?

A. ₦0

Correct B. ₦50,000

C. ₦150,000

D. ₦200,000

Correct Answer: B

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Question 6

In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will

Correct A. increase

B. decrease

C. remain constant

D. become elastic

Correct Answer: A

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Question 7

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?

A. 5%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 8

A consumer has a budget constraint of 100 units of currency and faces a price of 5 units of currency per unit of good X. If the consumer's indifference curve is given by U = 2X^0.5, what is the consumer's optimal quantity of good X?

A. 4 units

Correct B. 6 units

C. 8 units

D. 10 units

Correct Answer: B

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Question 9

A firm's revenue function is given by R = 100Q - 2Q^2. If the firm's marginal revenue is equal to its marginal cost, what is the firm's optimal quantity?

A. 10 units

Correct B. 20 units

C. 30 units

D. 40 units

Correct Answer: B

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Question 10

A consumer's utility function is given by U = 2X^0.5 + 3Y^0.5. If the consumer's budget constraint is 100 units of currency and the prices of goods X and Y are 5 units of currency and 10 units of currency respectively, what is the consumer's optimal quantity of good X?

A. 4 units

Correct B. 6 units

C. 8 units

D. 10 units

Correct Answer: B

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Question 11

A company specializes in manufacturing and selling bicycles. The production process involves several stages, including design, prototyping, and assembly. The company uses a just-in-time (JIT) inventory system to manage its inventory levels. What is the primary advantage of using a JIT inventory system in this context?

A. Reduced inventory costs

B. Improved product quality

Correct C. Increased production efficiency

D. Enhanced customer satisfaction

Correct Answer: C

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Question 12

A consumer purchases a product from a retailer, but the product is defective. The consumer returns the product to the retailer, who offers a replacement or a refund. What is the primary legal principle that governs this situation?

A. The doctrine of caveat emptor

B. The principle of implied warranty

Correct C. The concept of consumer protection

D. The rule of privity of contract

Correct Answer: C

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Question 13

A company purchases a warehouse from a supplier. The warehouse is used for storing goods, but it is also used for other purposes, such as office space and storage of equipment. What is the primary accounting principle that governs the treatment of this warehouse?

A. The principle of matching

B. The concept of depreciation

Correct C. The rule of capitalization

D. The doctrine of expensing

Correct Answer: C

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Question 14

A company uses a production process that involves several stages, including design, prototyping, and assembly. The company uses a just-in-time (JIT) inventory system to manage its inventory levels. What is the primary benefit of using a JIT inventory system in this context?

A. Reduced inventory costs

B. Improved product quality

Correct C. Increased production efficiency

D. Enhanced customer satisfaction

Correct Answer: C

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Question 15

A consumer purchases a product from a retailer, but the product is defective. The consumer returns the product to the retailer, who offers a replacement or a refund. What is the primary legal principle that governs this situation?

A. The doctrine of caveat emptor

B. The principle of implied warranty

Correct C. The concept of consumer protection

D. The rule of privity of contract

Correct Answer: C

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Question 16

The Central Bank of Nigeria (CBN) uses the monetary policy instrument of Open Market Operations (OMO) to increase the money supply in the economy. Which of the following is a consequence of this action?

A. The interest rate in the economy decreases.

B. The exchange rate of the naira appreciates.

Correct C. The inflation rate in the economy increases.

D. The money supply in the economy decreases.

Correct Answer: C

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Question 17

A consumer protection agency in Nigeria is responsible for enforcing the Consumer Protection Act. Which of the following is a right guaranteed by this Act?

A. The right to a fair trial.

B. The right to compensation for damages.

C. The right to withdraw from a contract.

Correct D. The right to a refund of purchase price.

Correct Answer: D

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Question 18

A company in Nigeria is considering exporting its products to a foreign country. Which of the following is a factor that the company should consider when making this decision?

A. The cost of transportation.

B. The cost of insurance.

Correct C. The cost of tariffs and taxes.

D. The cost of marketing and advertising.

Correct Answer: C

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Question 19

A business in Nigeria is considering using a new marketing strategy. Which of the following is a type of marketing strategy that the business could use?

A. Product differentiation.

B. Market segmentation.

C. Target marketing.

Correct D. Positioning.

Correct Answer: D

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Question 20

A company in Nigeria is considering investing in a new project. Which of the following is a type of investment that the company could make?

A. Fixed investment.

B. Working capital investment.

C. Current investment.

Correct D. Long-term investment.

Correct Answer: D

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Question 21

A company's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. Which of the following is a characteristic of a USP?

Correct A. It is a statement that highlights the product's features and benefits

B. It is a statement that emphasizes the product's price and quality

C. It is a statement that focuses on the product's brand and reputation

D. It is a statement that compares the product to its competitors

Correct Answer: A

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Question 22

A consumer purchases a product on credit from a store. The store charges a 10% interest rate on the purchase price. If the purchase price is ₦10,000, how much will the consumer pay at the end of the credit period?

A. ₦11,000

Correct B. ₦11,100

C. ₦11,200

D. ₦11,300

Correct Answer: B

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Question 23

A company's business unit is a sole trader. What is the primary advantage of this business structure?

A. Easy to set up and maintain

Correct B. Flexibility in decision-making

C. Limited liability for the owner

D. No need for formal accounting records

Correct Answer: B

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Question 24

A consumer purchases a product with a warranty that covers defects for a period of one year. If the product develops a defect after six months, what is the consumer's likely course of action?

A. Return the product to the store for a full refund

B. Contact the manufacturer for a replacement

Correct C. Seek compensation from the store for the defect

D. Wait for the warranty period to expire before taking action

Correct Answer: C

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Question 25

A company's marketing strategy involves creating a viral video campaign to promote its product. Which of the following is a characteristic of a viral video?

Correct A. It is a video that is widely shared on social media

B. It is a video that is created by a professional production company

C. It is a video that is focused on product features and benefits

D. It is a video that is created by a celebrity endorser

Correct Answer: A

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