POST UTME VERITAS UNIVERSITY 2019 Commerce | Objective

Are you preparing for POST UTME VERITAS UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
In a perfectly competitive market, the supply curve is a
Correct A. Horizontal line
B. Vertical line
C. U-shaped curve
D. S-shaped curve

Correct Answer: A

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Question 2
A company's marketing strategy involves creating a new product line that targets a specific demographic. This is an example of
Correct A. Segmentation
B. Targeting
C. Positioning
D. Product differentiation

Correct Answer: A

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Question 3
A firm's revenue is maximized when the price elasticity of demand is
A. Positive
Correct B. Negative
C. Zero
D. Undefined

Correct Answer: B

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Question 4
A company's financial statements show that its assets have increased by 20% and its liabilities have increased by 15%. What is the change in its equity?
A. 5%
Correct B. 10%
C. 15%
D. 20%

Correct Answer: B

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Question 5
A firm's cost of capital is 10% and its expected return on investment is 12%. What is the expected rate of return on investment in excess of the cost of capital?
A. 2%
B. 5%
Correct C. 8%
D. 10%

Correct Answer: C

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Question 6
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a characteristic of a sole trader?
A. Limited liability
Correct B. Unlimited liability
C. Separate legal entity
D. No partnership

Correct Answer: B

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Question 7
A company X has a paid-up capital of ₦5,000,000. The company issues 10,000 ordinary shares of ₦500 each. What is the company's capital structure?
A. ₦5,000,000 in equity and ₦0 in debt
B. ₦5,000,000 in debt and ₦0 in equity
Correct C. ₦5,000,000 in equity and ₦0 in debt
D. ₦5,000,000 in debt and ₦0 in equity

Correct Answer: C

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Question 8
A bank's reserve requirement is 10%. If the bank has a cash reserve of ₦1,000,000, what is the maximum amount of loans the bank can make?
Correct A. ₦9,000,000
B. ₦10,000,000
C. ₦11,000,000
D. ₦12,000,000

Correct Answer: A

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Question 9
A country's balance of payments account shows a trade deficit of 100 million. What is the effect of this on the country's exchange rate?
A. Appreciation of the currency
Correct B. Depreciation of the currency
C. No effect on the exchange rate
D. Increase in the exchange rate

Correct Answer: B

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Question 10
A company's marketing mix consists of product, price, place, and promotion. Which of the following is NOT a part of the marketing mix?
A. Product
B. Price
C. Place
Correct D. Research and Development

Correct Answer: D

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Question 11
A sole trader's business is considered a separate legal entity from its owner. True or False?
A. True
B. False
C. Depends on the jurisdiction
Correct D. It is not a separate legal entity

Correct Answer: D

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Question 12
A company's Memorandum of Association is a public document. True or False?
A. True
Correct B. False
C. It depends on the type of company
D. It is a private document

Correct Answer: B

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Question 13
A sole trader's business is not required to file accounts with the registrar of companies. True or False?
Correct A. True
B. False
C. It depends on the size of the business
D. It depends on the type of business

Correct Answer: A

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Question 14
A company's Articles of Association can be amended by a special resolution. True or False?
Correct A. True
B. False
C. It depends on the type of company
D. It depends on the size of the company

Correct Answer: A

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Question 15
A sole trader's business is not required to have a separate bank account. True or False?
A. True
Correct B. False
C. It depends on the size of the business
D. It depends on the type of business

Correct Answer: B

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Question 16
A sole trader's business is considered a separate legal entity from its owner. Discuss this statement with reference to the concept of limited liability.
A. The sole trader's business is not a separate legal entity from its owner.
B. The sole trader's business is a separate legal entity from its owner, but the owner has unlimited liability.
Correct C. The sole trader's business is a separate legal entity from its owner, and the owner has limited liability.
D. The concept of limited liability does not apply to sole traders.

Correct Answer: C

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Question 17
A company has a production process that involves the use of a machine. The machine has a capacity to produce 100 units per hour. If the company operates for 8 hours a day, what is the total number of units produced in a day?
Correct A. 800 units
B. 1000 units
C. 1200 units
D. 1600 units

Correct Answer: A

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Question 18
A country has a trade deficit of 100 million. If the country's exports are valued at 500 million and its imports are valued at 600 million, what is the balance of trade?
A. Trade surplus of 100 million
Correct B. Trade deficit of 100 million
C. Trade surplus of 200 million
D. Trade deficit of 200 million

Correct Answer: B

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Question 19
A company has a warehouse with a capacity to store 1000 units. If the company receives 500 units of goods, what is the percentage of the warehouse's capacity that is utilized?
A. 25%
Correct B. 50%
C. 75%
D. 100%

Correct Answer: B

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Question 20
A sole trader's business has a profit of 100,000. If the sole trader's income tax rate is 20%, what is the amount of income tax payable?
Correct A. 20,000
B. 30,000
C. 40,000
D. 50,000

Correct Answer: A

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Question 21
In a sole trade business, what is the primary advantage of using a sole trader as a business structure?
A. Limited liability
B. Unlimited liability
C. Easy to set up
Correct D. Flexibility in decision-making

Correct Answer: D

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Question 22
A company has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. If the company issues 20,000 shares to the public, what is the total amount of share capital raised?
A. ₦200,000
Correct B. ₦400,000
C. ₦600,000
D. ₦800,000

Correct Answer: B

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Question 23
A consumer purchases a product for ₦10,000 and pays a 10% deposit. If the consumer returns the product within 30 days, what is the amount of money the consumer will receive as a refund?
A. ₦1,000
Correct B. ₦9,000
C. ₦8,000
D. ₦7,000

Correct Answer: B

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Question 24
A company has a warehouse with a capacity of 10,000 units. If the company receives a shipment of 5,000 units, what is the percentage of the warehouse that is occupied?
Correct A. 25%
B. 30%
C. 40%
D. 50%

Correct Answer: A

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Question 25
A company has a stock of 1,000 units, with a reorder level of 500 units. If the company receives an order for 200 units, what is the new stock level?
A. 800
B. 900
C. 1,000
Correct D. 1,200

Correct Answer: D

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