POST UTME FUTO 2019 Commerce | Objective

Are you preparing for POST UTME FUTO exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
A firm specializes in producing only one good. This specialization allows the firm to produce the good at a lower cost due to economies of scale. What is the name of this phenomenon?
Correct A. Economies of scale
B. Division of labor
C. Comparative advantage
D. Opportunity cost

Correct Answer: A

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Question 2
A firm's inventory is valued at the lower of cost or net realizable value. What is the name of this accounting principle?
A. Matching principle
B. Materiality principle
C. Consistency principle
Correct D. Lower of cost or net realizable value principle

Correct Answer: D

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Question 3
A firm is considering exporting its product to a foreign country. What is the name of the risk associated with this decision?
A. Country risk
B. Transfer risk
C. Exchange risk
Correct D. Political risk

Correct Answer: D

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Question 4
A firm's financial statements are audited by an independent auditor. What is the purpose of this audit?
A. To verify the accuracy of the financial statements
B. To ensure compliance with accounting standards
Correct C. To provide assurance to stakeholders
D. To detect fraud and errors

Correct Answer: C

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Question 5
A firm's insurance policy covers losses due to natural disasters. What type of insurance is this?
A. Liability insurance
Correct B. Property insurance
C. Casualty insurance
D. Disability insurance

Correct Answer: B

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Question 6
A company is considering two marketing strategies: Strategy A, which involves a 10% discount on all products, and Strategy B, which involves a 5% increase in product prices. If the company's revenue is expected to increase by 15% under Strategy A, and decrease by 8% under Strategy B, which strategy should the company adopt to maximize its revenue?
Correct A. Strategy A
B. Strategy B
C. Both strategies are equally effective
D. Neither strategy is effective

Correct Answer: A

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Question 7
A warehouse has a storage capacity of 10,000 units. The warehouse is currently 70% full, with 7,000 units stored. If 1,500 units are received in a shipment, what is the new percentage of the warehouse that is full?
A. 60%
Correct B. 65%
C. 70%
D. 75%

Correct Answer: B

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Question 8
A consumer protection agency has received a complaint about a company's advertising practices. The company has been accused of making false claims about its products. Which of the following is a legal requirement for companies to follow when making advertising claims?
A. To provide a 30-day money-back guarantee
Correct B. To disclose all material facts
C. To provide a 1-year warranty
D. To make false claims

Correct Answer: B

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Question 9
A company has a policy of paying its employees a bonus of 10% of their salary if they complete a certain number of projects within a specified timeframe. If an employee completes 5 projects within the timeframe, what is the total bonus they will receive?
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 10
A company has a fleet of 10 vehicles, each with an average fuel efficiency of 10 kilometers per liter. If the company wants to reduce its fuel consumption by 20%, how many liters of fuel will it need to buy per month?
A. 100 liters
Correct B. 120 liters
C. 150 liters
D. 180 liters

Correct Answer: B

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Question 11
A sole trader's business is affected by the following factors: market conditions, government policies, and the availability of raw materials. Which of the following is NOT a factor that affects the business?
Correct A. The owner's personal characteristics
B. The availability of raw materials
C. Government policies
D. Market conditions

Correct Answer: A

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Question 12
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If 500 units are added to the warehouse, what is the new percentage of the warehouse that is full?
A. 50%
Correct B. 60%
C. 70%
D. 80%

Correct Answer: B

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Question 13
A marketing manager is responsible for promoting a new product. The product has a unique feature that sets it apart from other products in the market. Which of the following marketing strategies would be most effective in promoting the product?
A. Social media marketing
B. Influencer marketing
Correct C. Content marketing
D. Event marketing

Correct Answer: C

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Question 14
A company has a fleet of vehicles that are used for transportation. The company wants to reduce its fuel consumption and lower its carbon footprint. Which of the following options would be most effective in achieving this goal?
Correct A. Using electric vehicles
B. Using hybrid vehicles
C. Using vehicles with better fuel efficiency
D. Reducing the number of vehicles in the fleet

Correct Answer: A

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Question 15
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If 500 units are removed from the warehouse, what is the new percentage of the warehouse that is full?
A. 50%
B. 60%
Correct C. 70%
D. 80%

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 best describes the primary goal of advertising in this mix?
Correct A. To create awareness about the company's products or services
B. To build brand loyalty among customers
C. To increase sales revenue
D. To reduce production costs

Correct Answer: A

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Question 17
A firm's warehousing and stock control system involves the use of a first-in-first-out (FIFO) inventory method. What is the primary advantage of this method?
A. It helps to reduce inventory costs
Correct B. It ensures that the oldest items are sold first
C. It increases storage capacity
D. It improves supply chain management

Correct Answer: B

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Question 18
A company is considering exporting its products to a foreign market. Which of the following is a key factor to consider when evaluating the feasibility of this decision?
A. The company's production costs
Correct B. The demand for the product in the foreign market
C. The company's marketing strategy
D. The foreign market's trade policies

Correct Answer: B

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Question 19
A sole trader's business involves the sale of goods to customers. Which of the following is a key responsibility of the sole trader?
A. To manage the business's finances
B. To make strategic decisions about the business
C. To ensure compliance with tax laws
Correct D. To maintain accurate records of business transactions

Correct Answer: D

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Question 20
A bank's financial services include the provision of loans to customers. Which of the following is a key consideration when evaluating the creditworthiness of a loan applicant?
Correct A. The applicant's credit history
B. The applicant's income level
C. The applicant's employment status
D. The applicant's age

Correct Answer: A

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Question 21
A company's sole trader has a warehouse with a capacity of 10,000 units. If the company's average daily stock-out rate is 50 units, and the stock-out rate is directly proportional to the square root of the number of units in stock, what is the maximum number of units that can be stored in the warehouse?
A. 5,000
Correct B. 7,071
C. 10,000
D. 12,247

Correct Answer: B

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Question 22
A sole trader has a business unit that sells goods to consumers. If the sole trader has a profit margin of 25% and the selling price is ₦1,500, what is the cost price of the goods?
Correct A. ₦1,125
B. ₦1,250
C. ₦1,375
D. ₦1,500

Correct Answer: A

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Question 23
A consumer protection agency has a budget of ₦500,000 to spend on advertising and public awareness campaigns. If the agency wants to allocate 30% of the budget to advertising and 70% to public awareness campaigns, what is the amount allocated to public awareness campaigns?
A. ₦175,000
Correct B. ₦350,000
C. ₦425,000
D. ₦500,000

Correct Answer: B

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Question 24
A bank has a loan facility of ₦10,000,000 with an interest rate of 12% per annum. If the loan is repaid in 5 years, what is the total interest paid?
A. ₦1,200,000
B. ₦1,500,000
Correct C. ₦1,800,000
D. ₦2,000,000

Correct Answer: C

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Question 25
A transport company has a fleet of 10 buses that travel an average of 200 km per day. If the company wants to increase the average distance traveled by 20% and the fuel consumption rate is 10 km/liter, what is the total fuel consumption per day?
A. 200 liters
B. 250 liters
Correct C. 300 liters
D. 350 liters

Correct Answer: C

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