POST UTME UNIOSUN 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader is considering the formation of a partnership. What are the primary advantages of forming a partnership?
A. Increased capital and improved risk management
B. Improved decision-making and reduced administrative costs
C. Increased tax liabilities and reduced personal liability
D. Reduced capital and improved personal liability
Question 2
A consumer protection agency has received a complaint from a customer who was sold a defective product. The product was sold for ₦10,000, but the customer is requesting a refund of ₦15,000. What is the agency's likely response?
A. The agency will order the seller to refund the customer ₦15,000
B. The agency will order the seller to refund the customer ₦10,000
C. The agency will investigate the matter further
D. The agency will dismiss the complaint
Question 3
A commercial bank's primary function is to act as a financial intermediary between savers and borrowers. However, it also provides other services such as cash management, foreign exchange, and investment advice. Which of the following is NOT a primary function of a commercial bank?
A. Accepting deposits from the public
B. Providing investment advice
C. Acting as a financial intermediary
D. Issuing credit cards
Question 4
A consumer protection law that prohibits false or misleading advertising is an example of
A. truth-in-advertising law
B. consumer credit protection law
C. product liability law
D. franchise law
Question 5
The diagram below shows the demand and supply curves for a particular commodity. What is the equilibrium price and quantity?
A. ₦100, 100 units
B. ₦120, 80 units
C. ₦150, 60 units
D. ₦180, 40 units
Question 6
A company's business law obligations include compliance with relevant statutes and regulations. Which of the following is a key statute that regulates business law in Nigeria?
A. Companies and Allied Matters Act
B. Consumer Protection Act
C. Banking and Other Financial Institutions Act
D. Securities and Exchange Commission Act
Question 7
A company's marketing strategy involves creating a brand identity that differentiates it from its competitors. Which of the following is a key element of a brand identity?
A. Product features
B. Price
C. Packaging
D. Brand name
Question 8
A bank's cash reserve ratio is 20%. If the bank has a total deposit of ₦1,000,000, how much cash must it reserve?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦400,000
Question 9
A sole trader has a business income of ₦1,000,000 and a business expense of ₦500,000. What is the sole trader's profit?
A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000
Question 10
A firm is considering entering a new market. The firm's marketing research indicates that the market is highly competitive, and the firm's product is not well-known in the market. However, the firm's product has a unique feature that sets it apart from its competitors. What is the likely effect of the firm's product feature on its market share?
A. The firm's market share will increase due to its unique product feature.
B. The firm's market share will decrease due to its lack of market presence.
C. The firm's market share will remain the same due to its competitive market.
D. The firm's market share will increase due to its well-known product.
Question 11
A sole trader has a business income of ₦500,000 and expenses of ₦300,000. What is the sole trader's profit?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦400,000
Question 12
A firm specializes in producing a single product, which is a variant of a product offered by a competitor. The firm's production process is highly efficient, and it can produce the product at a lower cost than its competitor. However, the firm's product is not as well-known as its competitor's product, and it has a smaller market share. What is the likely effect of the firm's specialization on its market share?
A. The firm's market share will increase due to its lower production cost.
B. The firm's market share will decrease due to its smaller market presence.
C. The firm's market share will remain the same due to its efficient production process.
D. The firm's market share will increase due to its well-known product.
Question 13
A company is considering two different transportation options for its products. Option A involves a fixed cost of ₦200,000 and a variable cost of ₦500 per unit transported. Option B involves a fixed cost of ₦300,000 and a variable cost of ₦400 per unit transported. If the company needs to transport 10,000 units, which option is more cost-effective?
A. Option A
B. Option B
C. Both options are equally cost-effective
D. Neither option is cost-effective
Question 14
A firm's supply chain involves the transportation of goods from suppliers to manufacturing facilities. Which of the following modes of transportation is most likely to be used for this purpose?
A. Air freight
B. Land freight
C. Sea freight
D. Rail freight
Question 15
A company is considering the following business units: sole trade, partnership, and company. Which of the following is a characteristic of a company?
A. Limited liability
B. Unlimited liability
C. Partnership
D. Sole trade

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