UTME 2022 Commerce | Objective

Are you preparing for UTME exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2022 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
An agreement to sell is distinguishable from a sale because in the former, the transfer of goods is
Correct A. deferred
B. immediate
C. not discussed
D. not anticipated

Correct Answer: A

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Question 2
A bank statement is a document
A. ordering a bank to pay on demand a stated sum of money
B. used for paying money into a bank account
C. used for regular withdrawal of money from a savings account
Correct D. containing records of receipts, payments and balance on an account

Correct Answer: D

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Question 3
In foreign trade, document of title is known as
A. declaration form
B. certificate of origin
Correct C. bill of lading
D. bill at sight

Correct Answer: C

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Question 4
Chidimma ordered goods for her retail shop. The manufacturer sells the goods at retail price of ₦500 but would give it to Chidimma at ₦400. What kind of discount did she get?
Correct A. trade discount
B. cash discount
C. quantity discount
D. seasonal discount

Correct Answer: A

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Question 5
The process of bringing a company under exclusive state ownership and control is known as
A. commercialization
Correct B. nationalization
C. indigenization
D. privatization

Correct Answer: B

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Question 6
The organizational structure above represents
A. line and functional structure
B. functional structure
C. line structure
Correct D. line and staff structure

Correct Answer: D

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Question 7
The pivot on which the wheel of commerce rotates is
A. tariff
Correct B. price
C. trade
D. taxation

Correct Answer: B

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Question 8
Recognized members of the Stock Exchange who buy and sell securities on their own behalf are known as
A. bulls
B. brokers
Correct C. jobbers
D. stags

Correct Answer: C

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Question 9
Public debt management is one of the functions of a
Correct A. central bank
B. merchant bank
C. commercial bank
D. development bank

Correct Answer: A

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Question 10
Communication enhances business activities by
A. facilitating interaction among media houses
B. ensuring the movement of goods from the producer to the consumer
C. keeping the goods safe, until they are needed
Correct D. facilitating interaction between producers and consumers

Correct Answer: D

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Question 11
In Nigeria, the ministry in charge of registering trade associations is that of
A. industries
B. finance
Correct C. commerce
D. culture and tourism

Correct Answer: C

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Question 12
To increase the supply of money in a country, the central bank has to
A. sell securities in the open market
Correct B. reduce cash ratio
C. call on special deposits
D. raise cash ratio

Correct Answer: B

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Question 13
Capital to a business is technically
Correct A. an asset
B. a profit
C. a liability
D. an expense

Correct Answer: A

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Question 14
A trade association consists of members engaged in the same trade while a chamber of commerce is
A. highly regulated by a government agency
B. made up of members that are registered
C. made up of firms in the banking industry
Correct D. not restricted on a particular industry

Correct Answer: D

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Question 15
TABLE - 15-16
Use the information below to answer questions 15 and 16 \( \text{Balance Sheet of LMN as at 31/12/2003} \) \( \begin{array}{l r | l r} \hline \text{Ordinary share capital} & 25,000,000 & \text{Fixed assets} & 26,000,000 \\ \text{Revenue reserve} & 10,000,000 & \text{Investment} & 22,000,000 \\ \text{General reserve} & 3,000,000 & \text{Current assets} & 5,000,000 \\ \text{Long-term liabilities} & 4,000,000 & & \\ \text{Current liabilities} & \underline{11,000,000} & & \underline{\text{\hspace{4em}}} \\ \hline \text{Total} & \underline{\underline{53,000,000}} & \text{Total} & \underline{\underline{53,000,000}} \\ \hline \end{array} \)
What is the net working capital?
A. ₦6,000,000
Correct B. ₦16,000,000
C. ₦6,000,000
D. ₦11,000,000

Correct Answer: B

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Question 16
TABLE - 15-16
Use the information below to answer questions 15 and 16 \( \text{Balance Sheet of LMN as at 31/12/2003} \) \( \begin{array}{l r | l r} \hline \text{Ordinary share capital} & 25,000,000 & \text{Fixed assets} & 26,000,000 \\ \text{Revenue reserve} & 10,000,000 & \text{Investment} & 22,000,000 \\ \text{General reserve} & 3,000,000 & \text{Current assets} & 5,000,000 \\ \text{Long-term liabilities} & 4,000,000 & & \\ \text{Current liabilities} & \underline{11,000,000} & & \underline{\text{\hspace{4em}}} \\ \hline \text{Total} & \underline{\underline{53,000,000}} & \text{Total} & \underline{\underline{53,000,000}} \\ \hline \end{array} \)
Determine the owner's equity.
A. ₦20,000,000
B. ₦38,000,000
Correct C. ₦42,000,000
D. ₦25,000,000

Correct Answer: C

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Question 17
Personal selling is used for the purpose of
Correct A. creating product awareness
B. establishing the company
C. providing information
D. giving financial assistance

Correct Answer: A

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Question 18
An example of a cartel is
A. ECOWAS
B. EU
Correct C. OPEC
D. AU

Correct Answer: C

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Question 19
Unresolved disputes between the employer and employees are usually referred to the
A. code of conduct bureau
Correct B. industrial arbitration tribunal
C. disciplinary committee
D. personnel unit

Correct Answer: B

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Question 20
Warehousing is important to manufacturers because it helps to
Correct A. produce goods in advance
B. improve the quality of goods
C. meet the demand of customers
D. determine input requirements

Correct Answer: A

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Question 21
A business man who undertakes the hull insurance policy is aiming at
A. protecting injured crew in the ship
B. averting payment of the freight
Correct C. covering damages to the body of the ship
D. covering losses on damages to the cargo

Correct Answer: C

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Question 22
In e-banking, ATM means
A. Authentic Teller Machine
B. Automatic Teller Machine
Correct C. Automated Teller Machine
D. All-purpose Teller Machine

Correct Answer: C

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Question 23
One of the functions of a retailer is the
A. financing of production activities
Correct B. breaking of bulk
C. provision of credit facilities to relations
D. provision of jobs for customers

Correct Answer: B

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Question 24
A predominant mark-up language for web pages is
Correct A. HTML
B. IP
C. HTTP
D. TCP

Correct Answer: A

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Question 25
The promotion and protection of trade, industry and agriculture through trade fairs is a function of
A. NACRDB
B. NACCIMA
Correct C. the Chamber of Commerce
D. the consumer protection council

Correct Answer: C

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