POST UTME UNIPORT 2023 Commerce | Objective

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Question 1
Determine the probability of a company experiencing a loss in its sole trade business, given that the probability of a loss in any given year is 0.05.
A. 0.95
Correct B. 0.05
C. 0.975
D. 0.025

Correct Answer: B

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Question 2
A company has two production units, A and B. Unit A produces 80% of the company's total output, while unit B produces 20%. If the probability of a loss in unit A is 0.03 and the probability of a loss in unit B is 0.05, what is the overall probability of a loss in the company?
A. 0.036
Correct B. 0.044
C. 0.052
D. 0.06

Correct Answer: B

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Question 3
A company has a sole trade business with an annual turnover of ₦1,500,000. If the company's profit margin is 15%, what is the company's profit?
Correct A. ₦225,000
B. ₦250,000
C. ₦275,000
D. ₦300,000

Correct Answer: A

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Question 4
A company has two business units, A and B. Unit A has a profit of ₦200,000, while unit B has a loss of ₦50,000. What is the company's overall profit?
A. ₦150,000
B. ₦175,000
Correct C. ₦200,000
D. ₦225,000

Correct Answer: C

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Question 5
A company has a production unit that produces 80% of its total output. If the probability of a loss in this unit is 0.03, what is the overall probability of a loss in the company?
Correct A. 0.024
B. 0.032
C. 0.04
D. 0.048

Correct Answer: A

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Question 6
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 wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
Correct B. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 150 units of cloth.
C. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 150 units of wheat and 100 units of cloth.
D. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 50 units of cloth.

Correct Answer: B

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Question 7
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is labor, and K is capital. If the firm wants to produce 100 units of output, and labor is fixed at 16 units, how many units of capital are required?
Correct A. 64
B. 32
C. 128
D. 256

Correct Answer: A

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Question 8
A country's balance of payments account is given by the following equation: BOP = X - M, where BOP is the balance of payments, X is exports, and M is imports. If the country's exports are 100 billion naira and imports are 80 billion naira, what is the balance of payments?
Correct A. ₦20 billion surplus
B. ₦20 billion deficit
C. ₦80 billion surplus
D. ₦80 billion deficit

Correct Answer: A

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Question 9
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm wants to maximize its revenue, what price should it charge?
A. ₦20
Correct B. ₦30
C. ₦40
D. ₦50

Correct Answer: B

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Question 10
A country's inflation rate is given by the following equation: Inflation = (P1 - P0) / P0, where P1 is the current price level and P0 is the previous price level. If the current price level is 120 and the previous price level was 100, what is the inflation rate?
Correct A. 20%
B. 30%
C. 40%
D. 50%

Correct Answer: A

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Question 11
A company's sole trader is considering expanding its business to include a new product line. However, the company's insurance policy does not cover this new product line. What type of risk is the company exposed to?
Correct A. Operational risk
B. Financial risk
C. Strategic risk
D. Compliance risk

Correct Answer: A

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Question 12
A consumer purchases a product online and receives a damaged item. The consumer contacts the company's customer service department, but the company refuses to provide a refund or replacement. What type of consumer protection law is applicable in this scenario?
A. Consumer Sales Act
Correct B. Consumer Protection Act
C. Trade Practices Act
D. Fair Trading Act

Correct Answer: B

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Question 13
A company's warehouse is storing goods worth ₦10 million. The company's stock control system is manual, and there is no inventory management software. What type of stock control system is the company using?
A. Barcode system
B. Radio Frequency Identification (RFID) system
Correct C. Manual system
D. Automated system

Correct Answer: C

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Question 14
A company's sole trader is considering forming a partnership with another business owner. What type of business unit is the company considering forming?
A. Sole trader
Correct B. Partnership
C. Limited liability company
D. Cooperative society

Correct Answer: B

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Question 15
A company's insurance policy has a deductible of ₦50,000. The company suffers a loss of ₦200,000. What amount will the company have to pay out of pocket?
A. ₦50,000
Correct B. ₦150,000
C. ₦200,000
D. ₦250,000

Correct Answer: B

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Question 16
A sole trader's business is considered a separate legal entity from its owner. However, the owner may be held personally liable for certain business debts. What is the name of this type of liability?
Correct A. Unlimited liability
B. Limited liability
C. Joint and several liability
D. Strict liability

Correct Answer: A

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Question 17
A company's marketing strategy involves creating a brand identity that appeals to a specific demographic. Which of the following is a key element of this strategy?
A. Product differentiation
B. Segmentation
C. Target marketing
Correct D. Positioning

Correct Answer: D

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Question 18
A warehouse manager is responsible for maintaining a high level of inventory turnover. Which of the following inventory management techniques would help achieve this goal?
Correct A. Just-in-time inventory system
B. Economic order quantity
C. Material requirements planning
D. Vendor-managed inventory

Correct Answer: A

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Question 19
A production manager is responsible for optimizing the production process to minimize costs. Which of the following production techniques would help achieve this goal?
A. Batch production
B. Mass production
Correct C. Flexible manufacturing system
D. Job production

Correct Answer: C

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Question 20
A company's insurance policy covers losses due to fire, theft, and natural disasters. What type of insurance policy is this?
Correct A. All-risk insurance
B. Named-peril insurance
C. Liability insurance
D. Business interruption insurance

Correct Answer: A

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Question 21
In a perfectly competitive market, the demand curve for a firm's product is its marginal revenue curve. What is the implication of this for the firm's profit-maximizing output?
Correct A. The firm will produce at the point where MR = MC
B. The firm will produce at the point where MR = P
C. The firm will produce at the point where MR = P - MC
D. The firm will produce at the point where MR = P + MC

Correct Answer: A

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Question 22
A company's marketing strategy involves creating a new product line to target a specific demographic. Which of the following is a key characteristic of this strategy?
A. It involves a change in the company's target market
Correct B. It involves a change in the company's product line
C. It involves a change in the company's pricing strategy
D. It involves a change in the company's distribution channels

Correct Answer: B

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Question 23
A firm's transportation costs are directly proportional to the square of the distance traveled. If the firm travels 100 km, what is the ratio of the transportation cost for this distance to the transportation cost for 50 km?
A. 1:1
B. 1:2
C. 1:4
Correct D. 1:8

Correct Answer: D

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Question 24
A company's foreign trade involves exporting goods to a country with a different currency. What is the primary risk associated with this type of trade?
Correct A. Exchange rate risk
B. Political risk
C. Country risk
D. Currency risk

Correct Answer: A

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Question 25
A firm's warehouse is designed to store goods in a way that minimizes the time it takes to retrieve them. What is the primary benefit of this design?
A. Reduced storage costs
B. Increased storage capacity
C. Improved inventory management
Correct D. Reduced handling costs

Correct Answer: D

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