POST UTME ESUT 2017 Commerce | Objective

Are you preparing for POST UTME ESUT exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
The Consumer Protection Act of 1999 in Nigeria provides for the protection of consumers from unfair trade practices. Which of the following is a provision of the Act?
Correct A. Prohibition of false or misleading advertisements
B. Establishment of the Consumer Protection Council
C. Compensation for consumers who suffer losses due to unfair trade practices
D. Regulation of consumer credit

Correct Answer: A

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Question 2
A company has a sole trader business structure. What is the primary advantage of this structure?
A. Unlimited personal liability
Correct B. Easy to set up and maintain
C. Ability to raise capital from investors
D. Separation of personal and business assets

Correct Answer: B

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Question 3
A company is planning to expand its operations into a new market. Which of the following marketing strategies would be most appropriate?
A. Product differentiation
Correct B. Market segmentation
C. Competitive pricing
D. Direct marketing

Correct Answer: B

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Question 4
A company is transporting goods by road. What is the primary responsibility of the company in terms of road safety?
A. Ensuring that the goods are properly secured
B. Complying with traffic laws and regulations
C. Providing adequate training to drivers
Correct D. Maintaining the vehicle in good condition

Correct Answer: D

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Question 5
A company is importing goods from a foreign country. What is the primary responsibility of the company in terms of customs clearance?
A. Ensuring that the goods are properly declared
Correct B. Complying with customs regulations and procedures
C. Providing adequate documentation
D. Paying the correct duties and taxes

Correct Answer: B

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Question 6
In a just-in-time inventory system, what is the primary goal of the warehouse manager?
A. To minimize inventory costs
B. To maximize storage capacity
Correct C. To ensure timely delivery of products
D. To reduce labor costs

Correct Answer: C

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Question 7
A company is considering two marketing strategies: product differentiation and market segmentation. Which strategy is more likely to increase market share?
Correct A. Product differentiation
B. Market segmentation
C. Both strategies are equally effective
D. Neither strategy is effective

Correct Answer: A

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Question 8
A firm is considering investing in a new logistics system. The system will cost ₦10 million to implement and will save the firm ₦5 million per year in transportation costs. What is the payback period of the investment?
A. 2 years
Correct B. 3 years
C. 4 years
D. 5 years

Correct Answer: B

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Question 9
A company is considering exporting its products to a new market. The company has a 20% market share in its current market and expects to maintain this share in the new market. If the new market is 50% larger than the current market, what is the company's expected market share in the new market?
A. 10%
B. 15%
Correct C. 20%
D. 25%

Correct Answer: C

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Question 10
A firm is considering purchasing a new insurance policy to cover its business risks. The policy costs ₦1 million per year and will pay out ₦5 million in the event of a loss. What is the expected value of the policy?
A. ₦4 million
Correct B. ₦5 million
C. ₦6 million
D. ₦7 million

Correct Answer: B

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Question 11
What is the primary goal of a firm's production function in the context of international trade?
Correct A. To maximize profits
B. To minimize costs
C. To increase market share
D. To improve product quality

Correct Answer: A

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Question 12
A company is considering expanding its operations to a new market. Which of the following is a key factor to consider in this decision?
Correct A. Market size and growth rate
B. Competitor analysis
C. Supply chain management
D. Financial resources

Correct Answer: A

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Question 13
A firm is considering purchasing insurance to mitigate risks associated with its operations. Which of the following types of insurance would be most relevant?
A. Liability insurance
B. Property insurance
Correct C. Business interruption insurance
D. Professional liability insurance

Correct Answer: C

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Question 14
A company is developing a new marketing campaign to promote its product. Which of the following marketing strategies would be most effective?
Correct A. Segmentation, targeting, and positioning
B. Product placement
C. Social media marketing
D. Influencer marketing

Correct Answer: A

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Question 15
A firm is considering investing in a new transportation system to improve its logistics. Which of the following transportation modes would be most suitable?
A. Air transportation
B. Land transportation
Correct C. Sea transportation
D. Rail transportation

Correct Answer: C

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Question 16
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is NOT a characteristic of a successful marketing strategy?
A. It is customer-centric
B. It is cost-effective
C. It is environmentally friendly
Correct D. It is focused on short-term gains

Correct Answer: D

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Question 17
A firm's risk management strategy involves diversification, hedging, and insurance. Which of the following is a benefit of diversification?
Correct A. It reduces the overall risk of the firm
B. It increases the overall risk of the firm
C. It reduces the cost of capital
D. It increases the cost of capital

Correct Answer: A

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Question 18
A company's foreign trade involves importing and exporting goods. Which of the following is a benefit of exporting?
Correct A. It increases the company's revenue
B. It decreases the company's costs
C. It increases the company's market share
D. It decreases the company's market share

Correct Answer: A

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Question 19
A firm's marketing mix involves the 4 Ps: product, price, promotion, and place. Which of the following is NOT a characteristic of a product?
A. It is unique
B. It is of high quality
C. It is environmentally friendly
Correct D. It is a service

Correct Answer: D

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Question 20
A company's risk management strategy involves identifying, assessing, and mitigating risks. 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 21
In a market with perfect competition, if the demand curve is downward-sloping and the supply curve is upward-sloping, what is the equilibrium price?
A. ( P = MC )
Correct B. ( P = MR )
C. ( P = AR )
D. ( P = AC )

Correct Answer: B

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Question 22
A company has a policy of paying its employees a fixed salary of ₦50,000 per month, plus a commission of 10% on sales. If the employee's total earnings for the month are ₦75,000, what is the amount of sales?
Correct A. ₦750,000
B. ₦600,000
C. ₦500,000
D. ₦450,000

Correct Answer: A

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Question 23
A life insurance policy has a premium of ₦10,000 per year, and a benefit of ₦200,000. If the policyholder dies after 5 years, what is the amount of the claim?
A. ₦100,000
B. ₦150,000
Correct C. ₦200,000
D. ₦250,000

Correct Answer: C

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Question 24
A bank has a reserve requirement of 10% and a cash reserve of ₦1,000,000. If the bank's total deposits are ₦10,000,000, what is the amount of credit extended?
Correct A. ₦8,000,000
B. ₦9,000,000
C. ₦10,000,000
D. ₦11,000,000

Correct Answer: A

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Question 25
A consumer protection law requires that all goods sold in a market must be accompanied by a warranty that guarantees the product's quality for a period of 2 years. If a consumer purchases a product on January 1st, 2023, and the product fails to meet the warranty standards on January 1st, 2025, what is the consumer's right?
A. The consumer has the right to a full refund.
B. The consumer has the right to a partial refund.
Correct C. The consumer has the right to a replacement product.
D. The consumer has no right to a refund or replacement.

Correct Answer: C

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