Exam Body

Year

Subject

Paper Type

UTME 2021 Commerce | Objective

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Question 1

The principle of span of control stipulates that

Correct A. the number of employees reporting to one superior should be kept to a workable maximum

B. an employee should report to only one superior

C. managers must demand accountability from their subordinates

D. resources have to be economized within the various divisions

Correct Answer: A

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Question 2

The main advantage of a sole trader is the freedom to

A. employ anyone he likes

Correct B. take quick decision

C. seek advise from any source

D. plough all the profits back into the business

Correct Answer: B

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Question 3

The major objective of corporate mergers is to

A. minimize the effects of taxation

Correct B. increase financial advantage

C. enhance economies of sale

D. facilitate profit maximization

Correct Answer: B

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Question 4

A provision in the charter of a company which gives holders of common stock the first option to purchase additional issues of the firm's common stock is the

Correct A. pre-emptive right

B. over-subscription right

C. ex-dividend right

D. shareholders right

Correct Answer: A

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Question 5

The conversion of raw materials into finished products creates

Correct A. form utility

B. time utility

C. marginal utility

D. place utility

Correct Answer: A

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Question 6

A form of money that has gone out of use is

A. paper money

Correct B. commodity money

C. foreign money

D. bank money

Correct Answer: B

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Question 7

The activities aimed at finding out customers needs and satisfaction can be described as

A. conceptual marketing

B. macro-marketing

C. socio-marketing

Correct D. micro-marketing

Correct Answer: D

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Question 8

Given: I. Retail II. Export III. Transport IV. Import V. Insurance VI. Banking and Finance VII. Wholesale VIII. Communication. Which of the above are aids to trade?

Correct A. III, V, VI and VIII

B. I, II, IV and VI

C. III, V, VI and VII

D. II, V, VI and VII

Correct Answer: A

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Question 9

Communication process involves the transmission of a message over a selected channel to

A. encoder

Correct B. receiver

C. audience

D. sender

Correct Answer: B

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Question 10

The instruments of credit include

A. billboards and postal stamps

B. payment vouchers and statement of account

C. bills of exchange and salary voucher

Correct D. bills of exchange and promissory notes

Correct Answer: D

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Question 11

The type of communication from a superior to a subordinate in an organization is referred to as

Correct A. downward communication

B. upward communication

C. lateral communication

D. horizontal communication

Correct Answer: A

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Question 12

The excess of the assets over the liabilities of a business is called

A. capital employed

Correct B. net worth

C. working capital

D. principal

Correct Answer: B

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Question 13

TABLE - Balance Sheet

Use the information below to answer questions 13 and 14.

\( \text{ABC Balance Sheet as at 31/12/2004} \)
\(
\begin{array}{l  r |  l  r}
 \\ \hline
 & \mathbb{N} & & \mathbb{N} \\
\text{Share capital} & 200,000 & \text{Fixed assets} & 180,000 \\
\text{Reserves} & 100,000 & \text{Investment} & 100,000 \\
\text{Long term liabilities} & 40,000 & \text{Current assets} & 50,000 \\
\text{Current liabilities} & \underline{30,000} & \text{Fictitious assets} & \underline{40,000} \\ \hline
\text{Total} & \underline{\underline{370,000}} & \text{Total} & \underline{\underline{370,000}} \\ \hline
\end{array} \)

The total sum for financing short term projects is

Correct A. N30,000. B

B. N200,000. C

C. N70,000. D

D. N40,000

Correct Answer: A

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Question 14

TABLE - Balance Sheet

Use the information below to answer questions 13 and 14.

Use the information below to answer questions 13 and 14.

\( \text{ABC Balance Sheet as at 31/12/2004} \)
\(
\begin{array}{l  r |  l  r}
 \\ \hline
 & \mathbb{N} & & \mathbb{N} \\
\text{Share capital} & 200,000 & \text{Fixed assets} & 180,000 \\
\text{Reserves} & 100,000 & \text{Investment} & 100,000 \\
\text{Long term liabilities} & 40,000 & \text{Current assets} & 50,000 \\
\text{Current liabilities} & \underline{30,000} & \text{Fictitious assets} & \underline{40,000} \\ \hline
\text{Total} & \underline{\underline{370,000}} & \text{Total} & \underline{\underline{370,000}} \\ \hline
\end{array} \)

What is the capital employed?

A. N340,000

B. N200,000

Correct C. N300,000

D. N170,000

Correct Answer: C

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Question 15

A distinctive advantage of GSM is its

A. cost

B. stability

Correct C. coverage

D. mobility

Correct Answer: C

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Question 16

The major determinant of fire insurance premium is the

A. usefulness of the property to the owner

Correct B. type and structure of the property to be insured

C. owner of the property to be insured

D. extent of fire damage anticipated

Correct Answer: B

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Question 17

An activity that involves derivation of raw materials from land and sea is

A. agriculture

B. farming

Correct C. extraction

D. construction

Correct Answer: C

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Question 18

A person who buys new issues with a view of reselling at a higher price in the near future is referred to as a

A. bear

B. bull

C. dealer

Correct D. stag

Correct Answer: D

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Question 19

The primary memory component of a computer is the

A. console

Correct B. cache

C. compilers

D. assemblers

Correct Answer: B

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Question 20

The transmission of telephone services from one country to another is facilitated by

A. international facility

B. internet services

C. interconnectivity

Correct D. communication satellite

Correct Answer: D

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Question 21

The best mode of ensuring that items posted get to the named addresses is through

A. recorded delivery

B. certificate of posting

Correct C. registered mail

D. express mail

Correct Answer: C

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Question 22

An agency contract must involve

A. a principal and a consumer

Correct B. a principal and an agent

C. a principal and a producer

D. a principal and a third party

Correct Answer: B

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Question 23

Inbound Tourism occurs when

A. residents of a country travel within it

B. non-residents of a country travel to other countries

C. residents of a country travel to other countries

Correct D. non-residents of a country travel within it

Correct Answer: D

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Question 24

When two or more companies agree to execute a project too large for one to handle, this is referred to as

A. an amalgamation

B. a cartel

Correct C. a consortium

D. a merger

Correct Answer: C

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Question 25

The main objective of a trade association is to

A. protect its members against litigation

B. protect its members against victimization

Correct C. boost the trade of its members

D. secure credit for its members

Correct Answer: C

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