Practice post utme futa commerce 2024 Past Questions

Question 1

The concept of 'caveat emptor' in consumer protection law is best described as:

Correct A. A warning to consumers to be cautious when purchasing goods

B. A principle that holds sellers liable for defects in goods

C. A doctrine that requires consumers to inspect goods before purchase

D. A rule that prohibits sellers from making false claims about goods

Correct Answer: A

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Question 2

A company's website is hacked, and sensitive customer information is stolen. Which of the following is a likely consequence of this breach?

Correct A. The company's reputation is severely damaged

B. The company is liable for damages to affected customers

C. The company's website is shut down indefinitely

D. The company's employees are fired

Correct Answer: A

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Question 3

A consumer purchases a product online, but it arrives damaged. The consumer wants to return the product, but the seller refuses. What is the consumer's best course of action?

A. File a complaint with the Better Business Bureau

B. Contact the seller's customer service department

Correct C. Seek mediation through a consumer protection agency

D. Take the seller to small claims court

Correct Answer: C

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Question 4

A company is considering outsourcing its manufacturing operations to a foreign country. Which of the following is a potential benefit of this decision?

Correct A. Reduced labor costs

B. Increased market share

C. Improved product quality

D. Enhanced brand reputation

Correct Answer: A

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Question 5

A consumer is considering purchasing a product from a company that has a history of producing high-quality products. Which of the following is a likely outcome of this purchase?

Correct A. The consumer will be satisfied with the product

B. The consumer will experience a significant increase in costs

C. The consumer will encounter difficulties with the product's warranty

D. The consumer will be exposed to a higher risk of product failure

Correct Answer: A

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Question 6

A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a requirement for registration?

A. Obtaining a Tax Identification Number (TIN)

Correct B. Obtaining a Business Name Registration Certificate

C. Obtaining a Certificate of Incorporation

D. Obtaining a Business Permit

Correct Answer: B

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Question 7

A company is required to keep a register of its members under the Companies and Allied Matters Act (CAMA) 2020. What is the purpose of this register?

A. To record the company's financial transactions

B. To record the company's share capital

Correct C. To record the names and addresses of the company's members

D. To record the company's business activities

Correct Answer: C

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Question 8

A bank's cash reserve ratio is 10%. If the bank has a cash reserve of ₦1,000,000, what is the total amount of deposits it can make?

A. ₦1,000,000

B. ₦10,000,000

Correct C. ₦100,000,000

D. ₦1,000,000,000

Correct Answer: C

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Question 9

A company has a policy of paying its employees a bonus of 10% of their salary after 6 months of service. If an employee earns ₦50,000 per month, what is the bonus amount after 6 months?

A. ₦3,000

Correct B. ₦5,000

C. ₦10,000

D. ₦20,000

Correct Answer: B

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Question 10

A warehouse has a capacity of 10,000 units. If 8,000 units are already stored, what is the remaining capacity?

Correct A. 2,000 units

B. 4,000 units

C. 6,000 units

D. 8,000 units

Correct Answer: A

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Question 11

A firm specializes in producing a single product, which is a type of commodity. If the firm's production increases by 20% and the price of the commodity decreases by 15%, what is the effect on the firm's total revenue?

A. Total revenue increases by 5%

B. Total revenue decreases by 2.5%

C. Total revenue remains the same

Correct D. Total revenue increases by 2.5%

Correct Answer: D

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Question 12

A bank offers a loan with an interest rate of 12% per annum compounded annually. If the principal amount is ₦10,000 and the loan is repaid after 3 years, what is the total amount paid by the borrower?

Correct A. ₦12,727.08

B. ₦12,727.09

C. ₦12,727.10

D. ₦12,727.11

Correct Answer: A

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Question 13

A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm increases its labor by 20% and capital by 15%, what is the effect on the output?

A. Output increases by 10%

B. Output increases by 12%

Correct C. Output increases by 15%

D. Output increases by 18%

Correct Answer: C

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Question 14

A firm's cost function is given by C = 2L + 3K, where C is the cost, L is the labor, and K is the capital. If the firm increases its labor by 20% and capital by 15%, what is the effect on the cost?

A. Cost increases by 10%

B. Cost increases by 12%

Correct C. Cost increases by 15%

D. Cost increases by 18%

Correct Answer: C

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Question 15

A firm's revenue function is given by R = 2Q^2, where R is the revenue and Q is the output. If the firm increases its output by 20%, what is the effect on the revenue?

A. Revenue increases by 10%

B. Revenue increases by 12%

Correct C. Revenue increases by 15%

D. Revenue increases by 18%

Correct Answer: C

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Question 16

A firm's profit function is given by π = R - C, where π is the profit, R is the revenue, and C is the cost. If the firm increases its revenue by 20% and cost by 15%, what is the effect on the profit?

A. Profit increases by 10%

B. Profit increases by 12%

Correct C. Profit increases by 15%

D. Profit increases by 18%

Correct Answer: C

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Question 17

A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm increases its labor by 20% and capital by 15%, what is the effect on the output?

A. Output increases by 10%

B. Output increases by 12%

Correct C. Output increases by 15%

D. Output increases by 18%

Correct Answer: C

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Question 18

A firm's cost function is given by C = 2L + 3K, where C is the cost, L is the labor, and K is the capital. If the firm increases its labor by 20% and capital by 15%, what is the effect on the cost?

A. Cost increases by 10%

B. Cost increases by 12%

Correct C. Cost increases by 15%

D. Cost increases by 18%

Correct Answer: C

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Question 19

A firm's revenue function is given by R = 2Q^2, where R is the revenue and Q is the output. If the firm increases its output by 20%, what is the effect on the revenue?

A. Revenue increases by 10%

B. Revenue increases by 12%

C. Revenue increases by 15%

D. Revenue increases by 18%

Correct Answer: VIEW ANSWER

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Question 20

The Central Bank of Nigeria (CBN) uses the following monetary policy tools to control inflation: interest rates, reserve requirements, and open market operations. However, the CBN has also been known to use a less conventional tool to control inflation. Which of the following is NOT a less conventional tool used by the CBN to control inflation?

A. Quantitative Easing

B. Forward Guidance

C. Price Controls

Correct D. Fiscal Policy

Correct Answer: D

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Question 21

A company is considering the following business units: sole trader, partnership, and limited liability company. Which of the following is a key advantage of a sole trader over a partnership?

A. Limited liability

Correct B. Easy to set up

C. No need for a partnership agreement

D. No tax implications

Correct Answer: B

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Question 22

A consumer has purchased a product from a retailer, but the product has a manufacturing defect. The consumer has the right to claim damages under which of the following laws?

Correct A. Sale of Goods Act

B. Consumer Protection Act

C. Contract Act

D. Tort Law

Correct Answer: A

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Question 23

A company has a warehouse with a capacity of 10,000 units. The company has received an order for 5,000 units, but the supplier has only delivered 3,000 units. The company's inventory level is currently at which of the following levels?

A. 5,000 units

Correct B. 3,000 units

C. 7,000 units

D. 10,000 units

Correct Answer: B

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Question 24

A company uses the following transportation modes: road, rail, and air. Which of the following is a key advantage of rail transportation over road transportation?

A. Faster delivery time

B. Lower fuel costs

Correct C. Higher capacity

D. Lower maintenance costs

Correct Answer: C

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Question 25

In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. If the market price increases, what happens to the quantity supplied?

A. The quantity supplied decreases

Correct B. The quantity supplied increases

C. The quantity supplied remains the same

D. The quantity supplied is unaffected

Correct Answer: B

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POST UTME FUTA 2024 Commerce | Objective

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