POST UTME ESUT 2023 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 2023 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering a new marketing strategy that involves offering a discount to customers who purchase a product online. The discount is 10% off the original price, and the company expects to sell 1000 units of the product online within the next month. If the original price of the product is ₦500, what is the total revenue the company will generate from online sales?
A. ₦450,000
Correct B. ₦475,000
C. ₦500,000
D. ₦525,000

Correct Answer: B

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Question 2
A consumer protection agency has received a complaint about a company that is selling a product with a misleading label. The label claims that the product is '100% natural' when in fact it contains artificial ingredients. What is the legal consequence for the company if it is found guilty of this offense?
A. The company will be fined ₦1 million
B. The company will be required to recall the product
C. The company will be banned from selling the product for 6 months
Correct D. The company will be required to pay damages to the consumers

Correct Answer: D

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Question 3
A sole trader is considering expanding their business by hiring employees. What is the main advantage of hiring employees?
A. Increased profit
B. Reduced workload
C. Improved product quality
Correct D. Increased flexibility

Correct Answer: D

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Question 4
A company has a production process that involves mixing two chemicals together. The company wants to minimize the cost of production while ensuring that the product meets the required quality standards. What is the most appropriate production method?
A. Batch production
B. Mass production
Correct C. Continuous production
D. Flexible production

Correct Answer: C

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Question 5
A company has a risk management strategy that involves diversifying its investments. What is the main advantage of diversification?
Correct A. Reduced risk
B. Increased profit
C. Improved product quality
D. Increased flexibility

Correct Answer: A

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Question 6
In the context of consumer protection, what is the primary purpose of the Consumer Protection Act?
A. To regulate business practices
Correct B. To protect consumers from unfair trade practices
C. To promote consumer education
D. To establish consumer courts

Correct Answer: B

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Question 7
A company is considering the introduction of a new product line. Which of the following is a key consideration in the decision-making process?
A. Market demand and competition
B. Production costs and supply chain management
C. Marketing and sales strategies
Correct D. All of the above

Correct Answer: D

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Question 8
A sole trader is considering the purchase of a new piece of equipment for their business. What is the primary advantage of leasing the equipment?
Correct A. Lower upfront costs
B. Increased tax benefits
C. Improved cash flow
D. Reduced maintenance costs

Correct Answer: A

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Question 9
A company is considering the introduction of a new business process. Which of the following is a key benefit of process re-engineering?
A. Improved efficiency and productivity
B. Enhanced customer satisfaction
C. Increased employee morale
Correct D. Reduced costs and waste

Correct Answer: D

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Question 10
A bank is considering the introduction of a new financial product. Which of the following is a key consideration in the product development process?
A. Market demand and competition
B. Regulatory requirements and compliance
C. Risk management and return on investment
Correct D. All of the above

Correct Answer: D

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Question 11
A company's production process involves the following stages: raw material procurement, production, packaging, and distribution. If the company uses a just-in-time (JIT) inventory system, which stage of the production process is most likely to be affected by the JIT system?
A. Raw material procurement
Correct B. Production
C. Packaging
D. Distribution

Correct Answer: B

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Question 12
A firm's marketing strategy involves a mix of advertising, sales promotion, and public relations. If the firm wants to increase its market share, which of the following marketing tools is most likely to be effective?
Correct A. Advertising
B. Sales promotion
C. Public relations
D. Personal selling

Correct Answer: A

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Question 13
A company's warehouse is designed to store a large quantity of goods. If the company uses a first-in-first-out (FIFO) inventory system, which of the following is true?
Correct A. The oldest items are sold first
B. The newest items are sold first
C. The items are sold in the order they are received
D. The items are sold randomly

Correct Answer: A

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Question 14
A firm's production process involves the following stages: raw material procurement, production, packaging, and distribution. If the firm wants to reduce its production costs, which of the following production strategies is most likely to be effective?
Correct A. Mass production
B. Batch production
C. Job production
D. Flexible manufacturing system

Correct Answer: A

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Question 15
A company's marketing strategy involves a mix of advertising, sales promotion, and public relations. If the company wants to increase its brand awareness, which of the following marketing tools is most likely to be effective?
Correct A. Advertising
B. Sales promotion
C. Public relations
D. Personal selling

Correct Answer: A

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Question 16
The Consumer Protection Act of 1999 provides protection to consumers in Nigeria. Which of the following is a fundamental right of a consumer under this Act?
A. The right to be informed about the product or service
B. The right to choose between different products or services
Correct C. The right to be protected against unfair or deceptive business practices
D. The right to be compensated for any loss or damage suffered

Correct Answer: C

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Question 17
A company in Nigeria imports goods from a foreign country. The goods are subject to customs duties and other taxes. What is the term for the total amount of customs duties and taxes paid on the imported goods?
Correct A. Tariff
B. Duty
C. Tax
D. Customs Value

Correct Answer: A

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Question 18
A bank in Nigeria offers a savings account with a fixed interest rate of 5% per annum. If a customer deposits ₦10,000 into the account, how much interest will the customer earn in one year?
Correct A. ₦500
B. ₦500.01
C. ₦500.50
D. ₦500.51

Correct Answer: A

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Question 19
A company in Nigeria uses a marketing strategy that involves creating a sense of urgency among customers to buy a product. This strategy is an example of which of the following?
A. Scarcity
B. Exclusivity
Correct C. Limited-time offer
D. Free gift

Correct Answer: C

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Question 20
A consumer in Nigeria purchases a product online from a foreign company. The product is subject to customs duties and other taxes. What is the term for the total amount of customs duties and taxes paid on the imported product?
Correct A. Tariff
B. Duty
C. Tax
D. Customs Value

Correct Answer: A

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Question 21
A consumer protection agency has been established to regulate the activities of businesses in a particular industry. Which of the following is a key responsibility of this agency?
A. To ensure that businesses comply with all relevant laws and regulations
Correct B. To protect consumers from unfair business practices
C. To promote fair competition among businesses
D. To provide training and education to consumers on how to make informed purchasing decisions

Correct Answer: B

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Question 22
A company is considering implementing a just-in-time inventory system. What is the primary advantage of this system?
Correct A. Reduced inventory costs
B. Improved customer service
C. Increased efficiency in production
D. Enhanced supply chain visibility

Correct Answer: A

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Question 23
A business is considering purchasing insurance to protect against losses due to natural disasters. Which type of insurance would be most appropriate?
A. Liability insurance
Correct B. Property insurance
C. Business interruption insurance
D. Workers' compensation insurance

Correct Answer: B

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Question 24
A company is considering entering a new market. What is the primary factor that should be considered when evaluating the market?
A. Market size
B. Market growth rate
C. Market competition
Correct D. Market barriers to entry

Correct Answer: D

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Question 25
A business is considering implementing a new production process. What is the primary benefit of this process?
A. Increased efficiency
B. Improved product quality
Correct C. Reduced production costs
D. Enhanced supply chain visibility

Correct Answer: C

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