POST UTME EKSU 2020 Commerce | Objective

Are you preparing for POST UTME EKSU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
A company is considering the implementation of a just-in-time (JIT) inventory system. Which of the following is a key benefit of JIT?
Correct A. Reduced inventory costs
B. Improved product quality
C. Increased production efficiency
D. Enhanced customer service

Correct Answer: A

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Question 2
A sole trader is considering the purchase of a new piece of equipment for their business. The equipment costs ₦500,000 and is expected to last for 5 years. The sole trader expects to save ₦10,000 per month on utility bills due to the new equipment. What is the net present value (NPV) of the new equipment, assuming a discount rate of 10%?
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

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Question 3
A company is considering the implementation of a new marketing strategy. The company has a budget of ₦1,000,000 for the marketing campaign. The company expects to generate a return on investment (ROI) of 20% on the marketing campaign. What is the expected return on investment (ROI) in percentage terms?
A. 15%
Correct B. 20%
C. 25%
D. 30%

Correct Answer: B

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Question 4
A company is considering the purchase of a new insurance policy. The insurance policy costs ₦200,000 per year and provides a benefit of ₦500,000 in the event of a loss. The company expects to lose ₦300,000 per year. What is the expected value of the insurance policy?
A. ₦100,000
Correct B. ₦150,000
C. ₦200,000
D. ₦250,000

Correct Answer: B

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Question 5
A company is considering the implementation of a new production process. The new process is expected to increase production by 20% and reduce costs by 15%. What is the expected increase in profit?
A. ₦100,000
B. ₦150,000
Correct C. ₦200,000
D. ₦250,000

Correct Answer: C

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Question 6
In a sole proprietorship, the owner's personal assets are protected from business liabilities through a legal concept known as?
A. Separate Legal Entity
Correct B. Limited Liability
C. Personal Guarantee
D. Business Continuity

Correct Answer: B

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Question 7
A company's articles of association may be amended by a special resolution passed by a majority of?
A. 2/3 of the members
B. 3/4 of the members
Correct C. 2/3 of the shareholders
D. 3/4 of the directors

Correct Answer: C

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Question 8
The concept of risk management involves identifying, assessing, and prioritizing potential risks to minimize their impact on a business. Which of the following is a type of risk?
A. Financial Risk
B. Operational Risk
C. Strategic Risk
Correct D. All of the above

Correct Answer: D

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Question 9
A consumer protection law that prohibits unfair or deceptive acts or practices in the marketplace is known as?
A. Consumer Protection Act
B. Fair Trade Act
Correct C. Truth-in-Advertising Act
D. Deceptive Business Practices Act

Correct Answer: C

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Question 10
A sole proprietorship is a type of business ownership where one person owns and operates the business. What is the primary advantage of a sole proprietorship?
Correct A. Easy to set up
B. Limited liability
C. Tax benefits
D. Flexibility

Correct Answer: A

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Question 11
A sole trader's business is registered under which of the following?
A. Partnership
B. Limited Liability Company
Correct C. Sole Proprietorship
D. Cooperative Society

Correct Answer: C

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Question 12
A company's financial statements are audited by an independent auditor. What is the primary purpose of this audit?
A. To verify the company's financial statements
B. To ensure compliance with tax laws
Correct C. To provide assurance to stakeholders
D. To identify areas for improvement

Correct Answer: C

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Question 13
A warehouse manager wants to optimize storage space. Which of the following storage systems would be most effective?
A. First-In-First-Out (FIFO)
B. Last-In-First-Out (LIFO)
C. First-In-Last-Out (FILO)
Correct D. Just-In-Time (JIT)

Correct Answer: D

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Question 14
A bank's cash reserve ratio is 20%. If the bank has a cash reserve of ₦1,000,000, what is the maximum amount of loans it can give out?
Correct A. ₦4,000,000
B. ₦5,000,000
C. ₦6,000,000
D. ₦8,000,000

Correct Answer: A

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Question 15
A transportation company wants to minimize its fuel consumption. Which of the following routes would be most fuel-efficient?
A. Route A
Correct B. Route B
C. Route C
D. Route D

Correct Answer: B

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Question 16
A company has two warehouses, A and B, with capacities of 1000 and 800 units respectively. Warehouse A has 500 units of stock, while Warehouse B has 200 units. If 300 units are transferred from Warehouse A to Warehouse B, what is the new capacity of Warehouse A?
Correct A. 900
B. 1000
C. 1100
D. 1200

Correct Answer: A

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Question 17
A firm has the following probability distribution for the number of units it will sell in a month: P(X=0)=0.1, P(X=1)=0.3, P(X=2)=0.4, P(X=3)=0.2. What is the expected value of X?
A. 0.5
Correct B. 1.0
C. 1.5
D. 2.0

Correct Answer: B

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Question 18
A company has a sole trader business with a capital of ₦500,000. It has a profit of ₦200,000 in the first year and a loss of ₦150,000 in the second year. What is the company's capital at the end of the second year?
Correct A. ₦350,000
B. ₦400,000
C. ₦450,000
D. ₦500,000

Correct Answer: A

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Question 19
A firm has the following cost function: C(x)=2x^2+10x+5. If the firm produces 10 units, what is the total cost?
A. ₦150
B. ₦200
Correct C. ₦250
D. ₦300

Correct Answer: C

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Question 20
A company has a foreign trade agreement with a country that has a currency exchange rate of 1 USD = 360 Naira. If the company imports goods worth 1000, what is the total cost in Naira?
Correct A. ₦360,000
B. ₦360,000
C. ₦360,000
D. ₦360,000

Correct Answer: A

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Question 21
In a foreign trade transaction, a Nigerian exporter agrees to sell 1000 units of goods to a foreign buyer at a price of 500 per unit. However, due to a change in market conditions, the exporter wants to renegotiate the price. If the exporter is willing to accept a 10% discount on the original price, what is the new selling price per unit?
Correct A. 450
B. 475
C. 500
D. 525

Correct Answer: A

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Question 22
A company has a warehouse with a capacity to store 5000 units of goods. The warehouse is currently 70% full, and the company wants to store an additional 1000 units of goods. If the warehouse is rectangular in shape, and the length is 20 meters, what is the maximum width of the warehouse?
A. 10 meters
Correct B. 12 meters
C. 15 meters
D. 18 meters

Correct Answer: B

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Question 23
A life insurance policy has a premium of ₦5000 per annum. If the policyholder wants to pay the premium in 6 equal installments, what is the amount of each installment?
Correct A. ₦833.33
B. ₦1000
C. ₦1250
D. ₦1666.67

Correct Answer: A

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Question 24
A consumer protection agency receives a complaint from a consumer who purchased a product online. The product was not delivered within the stipulated time frame, and the consumer wants a refund. If the consumer has already paid ₦20,000 for the product, and the agency wants to deduct a 10% administrative fee, what is the amount of the refund?
Correct A. ₦18,000
B. ₦19,000
C. ₦20,000
D. ₦21,000

Correct Answer: A

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Question 25
A bank has a loan of ₦1,000,000 at an interest rate of 12% per annum. If the loan is compounded annually, what is the amount of the loan after 2 years?
A. ₦1,144,000
B. ₦1,160,000
Correct C. ₦1,200,000
D. ₦1,280,000

Correct Answer: C

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