POST UTME UNN 2020 Commerce | Objective

Are you preparing for POST UTME UNN exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
In a perfectly competitive market, the law of supply states that the quantity of a good supplied is determined by the interaction of the following factors, EXCEPT:
A. Price of the good
B. Price of related goods
C. Price of inputs
Correct D. Consumer preferences

Correct Answer: D

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Question 2
A company's marketing strategy involves creating a brand image that is perceived as luxurious and exclusive. This is an example of which of the following marketing strategies?
A. Product differentiation
B. Market segmentation
Correct C. Positioning
D. Packaging

Correct Answer: C

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Question 3
A firm's revenue is calculated as the product of the price per unit and the quantity sold. If the price per unit is ₦100 and the quantity sold is 100 units, what is the total revenue?
A. ₦10,000
Correct B. ₦100,000
C. ₦1,000,000
D. ₦10,000,000

Correct Answer: B

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Question 4
A consumer protection law that prohibits false or misleading advertising is an example of which of the following types of laws?
A. Administrative law
B. Criminal law
C. Civil law
Correct D. Regulatory law

Correct Answer: D

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Question 5
A company's insurance policy covers losses due to fire, theft, and natural disasters. This is an example of which of the following types of insurance policies?
Correct A. All-risk policy
B. Named-peril policy
C. Blanket policy
D. Excess policy

Correct Answer: A

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Question 6
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor and K is capital. If the firm wants to increase its output by 20% while keeping labor constant, what percentage increase in capital is required?
A. 10%
B. 20%
Correct C. 30%
D. 40%

Correct Answer: C

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Question 7
A company uses the following production function: Q = 3L^(1/3)K^(2/3). If the company wants to increase its output by 25% while keeping labor constant, what percentage increase in capital is required?
A. 15%
B. 25%
Correct C. 35%
D. 45%

Correct Answer: C

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Question 8
A firm's revenue function is given by R = 100Q - 2Q^2, where R is revenue and Q is output. If the firm wants to maximize its revenue, what level of output should it produce?
A. 10
Correct B. 20
C. 30
D. 40

Correct Answer: B

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Question 9
A company uses the following cost function: C = 200 + 5Q + 0.1Q^2. If the company produces 100 units of output, what is its total cost?
A. ₦1200
B. ₦1500
Correct C. ₦1800
D. ₦2000

Correct Answer: C

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Question 10
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm wants to maximize its revenue, what price should it charge?
A. ₦20
B. ₦30
Correct C. ₦40
D. ₦50

Correct Answer: C

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Question 11
A sole trader's business is registered under which of the following?
A. Partnership
B. Company
Correct C. Sole Proprietorship
D. Cooperative

Correct Answer: C

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Question 12
The main advantage of a company over a sole trader is that it provides?
Correct A. Limited liability
B. Unlimited liability
C. Easy formation
D. Easy dissolution

Correct Answer: A

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Question 13
The main disadvantage of a sole trader is that it provides?
A. Limited liability
Correct B. Unlimited liability
C. Easy formation
D. Easy dissolution

Correct Answer: B

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Question 14
The main advantage of a partnership is that it provides?
A. Limited liability
B. Unlimited liability
Correct C. Easy formation
D. Easy dissolution

Correct Answer: C

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Question 15
The main disadvantage of a partnership is that it provides?
A. Limited liability
Correct B. Unlimited liability
C. Easy formation
D. Easy dissolution

Correct Answer: B

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Question 16
In a warehouse management system, the 'First-In-First-Out' (FIFO) inventory valuation method is used. What is the primary advantage of using FIFO?
Correct A. It ensures that the oldest inventory items are sold first.
B. It allows for the valuation of inventory items based on their current market price.
C. It simplifies the process of tracking inventory levels.
D. It reduces the risk of inventory obsolescence.

Correct Answer: A

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Question 17
A company has a warehouse with a capacity of 10,000 units. The current inventory level is 8,000 units. If 2,000 units are received in a shipment, what is the new inventory level?
A. 6000
B. 8000
C. 10000
Correct D. 12000

Correct Answer: D

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Question 18
A bank offers a loan with an annual interest rate of 12%. If the loan amount is ₦100,000, what is the interest paid after 1 year?
Correct A. ₦12,000
B. ₦10,000
C. ₦8,000
D. ₦6,000

Correct Answer: A

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Question 19
A company has a policy of paying its employees a 10% bonus on their annual salary. If an employee's annual salary is ₦50,000, what is the bonus amount?
Correct A. ₦5,000
B. ₦4,000
C. ₦3,000
D. ₦2,000

Correct Answer: A

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Question 20
A person invests ₦20,000 in a savings account with an annual interest rate of 8%. If the interest is compounded annually, what is the amount in the account after 2 years?
A. ₦40,000
B. ₦42,000
C. ₦44,000
Correct D. ₦46,000

Correct Answer: D

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Question 21
A company's sole trader is considering expanding its business to include a new product line. However, the new product line requires a significant investment in equipment and personnel. The company's accountant has estimated that the initial investment will be ₦5 million, and the expected annual profit will be ₦1.5 million. If the company's cost of capital is 10% per annum, what is the expected internal rate of return (IRR) on the investment?
A. 12%
Correct B. 15%
C. 18%
D. 20%

Correct Answer: B

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Question 22
A firm's marketing manager is considering two different advertising campaigns to promote a new product. Campaign A will cost ₦1 million and is expected to reach 100,000 people, while Campaign B will cost ₦2 million and is expected to reach 200,000 people. If the firm's target audience is 500,000 people, and the firm wants to maximize its advertising reach, which campaign should it choose?
A. Campaign A
Correct B. Campaign B
C. Both campaigns
D. Neither campaign

Correct Answer: B

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Question 23
A company's warehouse is currently storing 10,000 units of a product. The company wants to maintain a safety stock of 20% of the total inventory. If the company wants to minimize its holding costs, what is the optimal reorder point?
A. 8,000 units
B. 10,000 units
Correct C. 12,000 units
D. 14,000 units

Correct Answer: C

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Question 24
A firm's insurance broker is considering two different insurance policies to cover the firm's business risks. Policy A will cost ₦500,000 per annum and has a deductible of ₦100,000, while Policy B will cost ₦750,000 per annum and has a deductible of ₦50,000. If the firm's expected annual loss is ₦200,000, which policy should it choose?
A. Policy A
Correct B. Policy B
C. Both policies
D. Neither policy

Correct Answer: B

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Question 25
A company's marketing manager is considering two different pricing strategies for a new product. Strategy A will price the product at ₦10,000, while Strategy B will price the product at ₦15,000. If the company's target audience is 100,000 people, and the company wants to maximize its revenue, which strategy should it choose?
A. Strategy A
Correct B. Strategy B
C. Both strategies
D. Neither strategy

Correct Answer: B

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