Practice Post UTME UNN commerce 2021 Past Questions

Question 1

In a sole proprietorship, the owner's personal assets are not protected from business liabilities. What is the name of the legal doctrine that allows creditors to seize the owner's personal assets?

Correct A. Piercing the Corporate Veil

B. Limited Liability

C. Separation of Assets

D. Corporate Personhood

Correct Answer: A

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Question 2

A company's articles of association may be amended by a special resolution passed by a majority of at least 75% of the shareholders present and voting. What is the name of this type of resolution?

A. Ordinary Resolution

Correct B. Special Resolution

C. Extraordinary Resolution

D. Emergency Resolution

Correct Answer: B

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Question 3

A consumer protection law requires that all advertisements must be truthful and not misleading. What is the name of this principle?

A. Honesty Principle

Correct B. Truth-in-Advertising Principle

C. Fairness Principle

D. Transparency Principle

Correct Answer: B

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Question 4

A company's marketing strategy involves creating a new product line to appeal to a younger demographic. What is the name of this marketing strategy?

A. Product Diversification

B. Market Segmentation

C. Target Marketing

Correct D. Brand Extension

Correct Answer: D

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Question 5

A risk management strategy involves transferring the risk of loss to a third party. What is the name of this risk management technique?

A. Risk Avoidance

Correct B. Risk Transfer

C. Risk Retention

D. Risk Mitigation

Correct Answer: B

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Question 6

A firm specializes in producing a single product, and its production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's labor and capital inputs are 100 units and 400 units, respectively, what is the quantity produced?

A. 200

Correct B. 250

C. 300

D. 350

Correct Answer: B

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Question 7

A consumer has a budget of ₦5000 and a preference for two goods, A and B. The prices of the goods are ₦2000 and ₦3000, respectively. If the consumer spends all of their budget, what is the quantity of good A consumed?

A. 1

Correct B. 2

C. 3

D. 4

Correct Answer: B

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Question 8

A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's labor and capital inputs are 100 units and 400 units, respectively, what is the quantity produced?

A. 200

Correct B. 250

C. 300

D. 350

Correct Answer: B

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Question 9

A consumer has a budget of ₦5000 and a preference for two goods, A and B. The prices of the goods are ₦2000 and ₦3000, respectively. If the consumer spends all of their budget, what is the quantity of good B consumed?

Correct A. 1

B. 2

C. 3

D. 4

Correct Answer: A

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Question 10

A firm specializes in producing a single product, and its production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's labor and capital inputs are 100 units and 400 units, respectively, what is the quantity produced?

A. 200

Correct B. 250

C. 300

D. 350

Correct Answer: B

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Question 11

A company is considering two different insurance policies to cover its business operations. Policy A has a premium of ₦1,500 and a deductible of ₦5,000. Policy B has a premium of ₦2,000 and a deductible of ₦3,000. If the company expects to incur an average loss of ₦10,000 per year, which policy should it choose?

Correct A. Policy A

B. Policy B

C. Neither policy

D. Both policies

Correct Answer: A

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Question 12

A firm is considering exporting its products to a foreign market. The firm's production costs are ₦100,000 per unit, and the selling price in the foreign market is ₦150,000 per unit. However, the firm must also pay a 10% tariff on the exported goods. What is the minimum price at which the firm should sell the goods in the foreign market to break even?

A. ₦132,500

B. ₦137,500

Correct C. ₦142,500

D. ₦147,500

Correct Answer: C

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Question 13

A consumer protection agency is investigating a complaint against a company that has been selling defective products. The company has a policy of replacing defective products free of charge, but the consumer has to pay for the return shipping. What type of consumer protection law is this company violating?

A. Unfair contract terms

B. Misleading advertising

Correct C. Lack of product liability

D. Failure to provide a refund

Correct Answer: C

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Question 14

A firm is considering investing in a new production technology that will increase its output by 20% but also increase its costs by 15%. What is the minimum increase in revenue required for the firm to break even?

A. 5%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 15

A company is considering two different transportation modes to deliver its products to a foreign market. Mode A costs ₦50,000 per unit and takes 10 days to deliver, while Mode B costs ₦30,000 per unit and takes 20 days to deliver. If the company expects to sell the products at ₦150,000 per unit, what is the minimum number of units the company should sell to break even?

A. 10 units

B. 20 units

Correct C. 30 units

D. 40 units

Correct Answer: C

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Question 16

A firm specializes in producing a single product. Which of the following is a characteristic of specialization in production?

Correct A. Increased productivity

B. Reduced labor costs

C. Improved product quality

D. Increased product variety

Correct Answer: A

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Question 17

A company uses the just-in-time (JIT) inventory system. Which of the following is a benefit of JIT?

Correct A. Reduced inventory costs

B. Improved product quality

C. Increased production efficiency

D. Reduced labor costs

Correct Answer: A

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Question 18

A firm purchases a liability insurance policy to protect against potential losses. Which of the following is a type of liability insurance?

A. Product liability insurance

Correct B. Professional liability insurance

C. Employers' liability insurance

D. Public liability insurance

Correct Answer: B

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Question 19

A company uses the marketing mix (4 Ps) to develop its marketing strategy. Which of the following is a component of the marketing mix?

A. Product

B. Price

C. Promotion

Correct D. All of the above

Correct Answer: D

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Question 20

A bank offers a savings account with a 5% annual interest rate. Which of the following is a benefit of the savings account?

Correct A. Increased liquidity

B. Improved creditworthiness

C. Higher returns on investment

D. Reduced risk

Correct Answer: A

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Question 21

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 50 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 22

A consumer is considering purchasing a product with a price of ₦500 and a discount of 10%. What is the final price of the product?

Correct A. ₦450

B. ₦500

C. ₦550

D. ₦600

Correct Answer: A

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Question 23

A company has a profit of ₦100,000 and an expense of ₦50,000. What is the company's net profit?

A. ₦50,000

Correct B. ₦75,000

C. ₦100,000

D. ₦125,000

Correct Answer: B

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Question 24

A firm is considering investing in a project with a return on investment (ROI) of 15%. If the firm's cost of capital is 10%, what is the net present value (NPV) of the project?

A. ₦100,000

Correct B. ₦150,000

C. ₦200,000

D. ₦250,000

Correct Answer: B

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Question 25

A consumer is considering purchasing a product with a price of ₦500 and a discount of 10%. What is the final price of the product?

Correct A. ₦450

B. ₦500

C. ₦550

D. ₦600

Correct Answer: A

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