POST UTME UNN 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader's business is registered as 'John Doe' at the Corporate Affairs Commission (CAC). Which of the following is a benefit of registering a business as a sole trader?
A. It provides limited liability protection for the owner.
B. It allows for easy transfer of ownership.
C. It provides tax benefits for the owner.
D. It is a simple and inexpensive way to start a business.
Question 2
A consumer has purchased a product that has been damaged during delivery. What is the consumer's right under the Consumer Protection Act?
A. To return the product for a full refund
B. To exchange the product for a similar one
C. To claim compensation for the damage
D. To cancel the purchase
Question 3
A sole trader is a business owned and operated by one individual. What are the advantages of being a sole trader?
A. Limited liability
B. Easy to set up
C. Flexibility in decision-making
D. Access to capital
Question 4
A consumer protection law requires that a product's packaging must include which of the following?
A. Manufacturer's name and address
B. Product's ingredients and nutritional information
C. Product's expiration date and shelf life
D. Product's warranty and return policy
Question 5
A firm's cost of production includes both fixed and variable costs. If the fixed cost is ₦10000 and the variable cost is ₦50 per unit, and the firm produces 100 units, what is the total cost of production?
A. ₦15000
B. ₦20000
C. ₦25000
D. ₦30000
Question 6
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied
A. decreases
B. increases
C. remains constant
D. fluctuates
Question 7
A company has a marketing budget of ₦1,000,000 and wants to allocate it between advertising and sales promotion. If the company wants to allocate 60% of the budget to advertising, how much will it allocate to sales promotion?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 8
A foreign trade agreement between two countries involves the exchange of goods worth ₦1,000,000. If the exchange rate is 1 USD = ₦500, what is the equivalent value of the goods in USD?
A. 2,000
B. 2,500
C. 3,000
D. 4,000
Question 9
A company's insurance policy has a deductible of ₦50,000. If the company's annual premium is ₦500,000, what is the amount of the premium that is not deductible?
A. ₦450,000
B. ₦475,000
C. ₦500,000
D. ₦525,000
Question 10
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity of a product in such a market?
A. (P = 10, Q = 100)
B. (P = 20, Q = 50)
C. (P = 15, Q = 75)
D. (P = 25, Q = 25)
Question 11
A sole trader's business is registered under which of the following?
A. Partnership
B. Limited Liability Company
C. Sole Trader
D. Proprietorship
Question 12
A company's production process involves the use of a machine that requires a minimum of 500 units of raw material to operate efficiently. The company produces 1,000 units of the product per day. What is the company's production efficiency?
A. 100%
B. 80%
C. 60%
D. 40%
Question 13
A warehouse's inventory control system uses the First-In-First-Out (FIFO) method. What is the primary advantage of this method?
A. Reduced storage costs
B. Improved inventory turnover
C. Increased accuracy of inventory records
D. Enhanced customer satisfaction
Question 14
A company is considering two different transportation methods for its new product. Method A involves a higher upfront cost but a lower ongoing cost, while Method B involves a lower upfront cost but a higher ongoing cost. If the company expects to produce 10,000 units per year for 5 years, which method should it choose?
A. Method A
B. Method B
C. Both methods are equally viable
D. Neither method is viable
Question 15
A consumer protection agency is responsible for enforcing laws that protect consumers from unfair business practices. Which of the following is an example of an unfair business practice?
A. False advertising
B. Price fixing
C. Bait and switch
D. All of the above

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