Practice Post UTME VERITAS UNIVERSITY commerce 2020 Past Questions

Question 1

In a sole trade business, what is the primary advantage of using a cash register?

Correct A. Improved record-keeping

B. Enhanced customer service

C. Increased sales

D. Reduced inventory costs

Correct Answer: A

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Question 2

A company has a warehouse with a capacity of 10,000 units. If it receives a shipment of 8,000 units, what is the new capacity?

A. 8,000

Correct B. 10,000

C. 12,000

D. 18,000

Correct Answer: B

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Question 3

A consumer purchases a product for ₦5,000 and pays a 10% sales tax. What is the total amount paid?

Correct A. ₦5,500

B. ₦5,000

C. ₦5,100

D. ₦5,200

Correct Answer: A

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Question 4

A company uses the following formula to calculate its profit: Profit = Revenue - (Cost of Goods Sold + Operating Expenses). If the revenue is ₦100,000, the cost of goods sold is ₦60,000, and the operating expenses are ₦20,000, what is the profit?

A. ₦20,000

Correct B. ₦30,000

C. ₦40,000

D. ₦50,000

Correct Answer: B

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Question 5

A sole trader has a business income of ₦200,000 and a business expense of ₦100,000. What is the business profit?

Correct A. ₦100,000

B. ₦200,000

C. ₦300,000

D. ₦400,000

Correct Answer: A

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Question 6

A company's 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 company increases its labor input from 100 units to 121 units, and its capital input from 100 units to 121 units, what is the percentage change in the quantity produced?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 7

A firm is considering two marketing strategies: Strategy A, which involves a 10% increase in advertising expenditure, and Strategy B, which involves a 20% increase in sales promotions. If the firm's current advertising expenditure is ₦100,000 and its current sales promotions expenditure is ₦50,000, what is the total increase in expenditure under Strategy B?

A. ₦15,000

B. ₦20,000

Correct C. ₦25,000

D. ₦30,000

Correct Answer: C

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Question 8

A consumer protection law requires that all products sold in a particular market must have a minimum warranty period of 2 years. If a company sells a product with a warranty period of 1 year, what is the company's liability under the consumer protection law?

A. ₦0

B. ₦10,000

C. ₦20,000

Correct D. ₦50,000

Correct Answer: D

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Question 9

A firm's 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 increases its labor input from 100 units to 121 units, and its capital input from 100 units to 121 units, what is the percentage change in the quantity produced?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 10

A firm is considering two marketing strategies: Strategy A, which involves a 10% increase in advertising expenditure, and Strategy B, which involves a 20% increase in sales promotions. If the firm's current advertising expenditure is ₦100,000 and its current sales promotions expenditure is ₦50,000, what is the total increase in expenditure under Strategy B?

A. ₦15,000

B. ₦20,000

Correct C. ₦25,000

D. ₦30,000

Correct Answer: C

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Question 11

A company has two warehouses, A and B, with capacities of 1000 and 500 units respectively. Warehouse A has 800 units of stock, while warehouse B has 200 units. If the company wants to transfer 300 units from warehouse A to warehouse B, what is the new total capacity of warehouse A?

A. 1200

Correct B. 1000

C. 800

D. 600

Correct Answer: B

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Question 12

A sole trader, Mr. A, has a business that generates an average profit of ₦500,000 per annum. If he wants to expand his business and increase his profit by 20%, what will be his new average profit?

Correct A. ₦600,000

B. ₦500,000

C. ₦400,000

D. ₦300,000

Correct Answer: A

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Question 13

A company has a production line that produces 500 units of a product per day. If the company wants to increase production by 15% and the production line operates for 20 days, how many units will be produced in total?

Correct A. 10,500

B. 10,000

C. 9,500

D. 9,000

Correct Answer: A

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Question 14

A company imports goods worth ₦1,000,000 from a foreign country. If the company pays a 10% customs duty on the imported goods, how much will the company pay in total?

Correct A. ₦1,100,000

B. ₦1,000,000

C. ₦900,000

D. ₦800,000

Correct Answer: A

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Question 15

A company has a marketing budget of ₦500,000. If the company wants to allocate 20% of the budget to advertising and 30% to promotion, what will be the total amount allocated to these two activities?

A. ₦200,000

Correct B. ₦150,000

C. ₦100,000

D. ₦50,000

Correct Answer: B

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Question 16

A sole trader's business is not registered with the Corporate Affairs Commission (CAC). What is the legal implication of this?

A. The business is not liable for any debts incurred.

Correct B. The business is not entitled to claim any tax relief.

C. The business is not required to file annual returns.

D. The business is not entitled to use the word 'Limited' in its name.

Correct Answer: B

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Question 17

A company has a warehouse with a capacity of 10,000 units. If it receives a shipment of 8,000 units, what is the percentage of the warehouse that is occupied?

A. 20%

B. 30%

Correct C. 40%

D. 50%

Correct Answer: C

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Question 18

A consumer purchases a product for ₦5,000. If the product is defective and the consumer returns it, what is the consumer entitled to under the Consumer Protection Act?

Correct A. A full refund of ₦5,000.

B. A partial refund of ₦2,500.

C. A replacement product.

D. No refund or replacement.

Correct Answer: A

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Question 19

A company produces two products, A and B. Product A requires 2 hours of labor and 1 hour of machine time, while product B requires 1 hour of labor and 2 hours of machine time. If the company has 8 hours of labor and 6 hours of machine time available, how many units of product A and product B should it produce to maximize profit?

A. 10 units of A and 6 units of B.

Correct B. 8 units of A and 4 units of B.

C. 6 units of A and 2 units of B.

D. 4 units of A and 8 units of B.

Correct Answer: B

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Question 20

A company has a warehouse with a capacity of 10,000 units. If it receives a shipment of 8,000 units, what is the percentage of the warehouse that is occupied?

A. 20%

B. 30%

Correct C. 40%

D. 50%

Correct Answer: C

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Question 21

A company is considering a new production process that will increase its output by 20% but also increase its costs by 15%. Using the concept of opportunity cost, what is the minimum increase in revenue required to justify the new production process?

A. 5%

B. 10%

Correct C. 15%

D. 20%

Correct Answer: C

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Question 22

A consumer protection agency is investigating a complaint about a company's warranty policy. The company offers a 1-year warranty on its products, but the consumer claims that the warranty period is too short. Using the concept of consumer protection, what is the minimum warranty period that the company should offer?

A. 2 years

Correct B. 3 years

C. 5 years

D. 10 years

Correct Answer: B

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Question 23

A company is considering a new marketing strategy that involves offering a discount to its customers. The company estimates that the discount will increase its sales by 10% but also increase its costs by 5%. Using the concept of opportunity cost, what is the minimum increase in revenue required to justify the new marketing strategy?

A. 2.5%

Correct B. 5%

C. 7.5%

D. 10%

Correct Answer: B

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Question 24

A company is considering a new production process that will increase its output by 15% but also increase its costs by 10%. Using the concept of opportunity cost, what is the minimum increase in revenue required to justify the new production process?

A. 12.5%

B. 15%

Correct C. 17.5%

D. 20%

Correct Answer: C

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Question 25

A consumer protection agency is investigating a complaint about a company's warranty policy. The company offers a 2-year warranty on its products, but the consumer claims that the warranty period is too short. Using the concept of consumer protection, what is the minimum warranty period that the company should offer?

A. 3 years

Correct B. 5 years

C. 7 years

D. 10 years

Correct Answer: B

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