POST UTME IGBINEDION UNIVERSITY 2020 Commerce | Objective

Are you preparing for POST UTME IGBINEDION UNIVERSITY 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 bank's cash reserve ratio is 20%. If the bank has a total deposit of ₦1,000,000, how much cash must it reserve?
Correct A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦400,000

Correct Answer: A

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Question 2
A company's sole trader has a business income of ₦500,000 and expenses of ₦300,000. What is the profit before tax?
Correct A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: A

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Question 3
A consumer protection agency receives a complaint about a company's misleading advertisement. The agency finds that the company has made false claims about its product. What action should the agency take?
A. Issue a warning to the company
B. Fine the company ₦500,000
Correct C. Ban the company from advertising for 6 months
D. Sue the company for ₦1,000,000

Correct Answer: C

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Question 4
A warehouse has a storage capacity of 10,000 square meters. If the warehouse is currently occupied by 8,000 square meters of goods, what is the remaining storage capacity?
Correct A. 2,000 square meters
B. 3,000 square meters
C. 4,000 square meters
D. 5,000 square meters

Correct Answer: A

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Question 5
A company's marketing strategy involves creating a viral video that goes viral on social media. The video is designed to promote the company's new product. What is the primary goal of this marketing strategy?
A. To increase brand awareness
B. To generate leads
C. To increase sales
Correct D. To create a buzz around the product

Correct Answer: D

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Question 6
Under the Consumer Protection Act of 1999, which of the following is a fundamental right of a consumer?
Correct A. Right to seek redress against unfair or deceptive trade practices
B. Right to receive compensation for any loss or damage suffered
C. Right to withdraw from a contract within a reasonable time
D. Right to receive a refund for a defective product

Correct Answer: A

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Question 7
A company uses a third-party logistics provider to manage its supply chain. Which of the following is a benefit of this arrangement?
A. Increased flexibility in responding to changes in demand
B. Improved visibility and control over the supply chain
Correct C. Reduced costs associated with managing the supply chain
D. Enhanced ability to negotiate with suppliers

Correct Answer: C

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Question 8
A business purchases a liability insurance policy to protect against potential lawsuits. Which of the following is a key feature of this type of insurance?
A. The policy covers only the business's assets
Correct B. The policy covers only the business's liabilities
C. The policy covers both the business's assets and liabilities
D. The policy does not cover any of the business's assets or liabilities

Correct Answer: B

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Question 9
A manufacturer produces a product with a defect that causes harm to a consumer. Which of the following is a potential consequence of this situation?
Correct A. The consumer may sue the manufacturer for damages
B. The manufacturer may be required to recall the defective product
C. The consumer may be required to pay for the cost of repairing the product
D. The manufacturer may be required to pay for the cost of repairing the product

Correct Answer: A

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Question 10
A business uses a just-in-time inventory system to manage its stock levels. Which of the following is a benefit of this approach?
Correct A. Reduced inventory costs associated with holding excess stock
B. Improved visibility and control over inventory levels
C. Enhanced ability to respond to changes in demand
D. Increased flexibility in managing the supply chain

Correct Answer: A

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Question 11
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases its labor input from 100 to 121 units, and its capital input from 100 to 121 units, by how many percentage points will its quantity produced increase?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 12
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm increases its price from ₦50 to ₦60, by how many units will its quantity demanded decrease?
A. 10 units
Correct B. 20 units
C. 30 units
D. 40 units

Correct Answer: B

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Question 13
A sole trader, Mr. A, has a business income of ₦500,000 and a business expense of ₦200,000. What is his business profit?
Correct A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: A

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Question 14
A company's marketing strategy involves a 10% discount on all products. If a product originally costs ₦1,000, what is the new price after the discount?
Correct A. ₦900
B. ₦950
C. ₦1,000
D. ₦1,050

Correct Answer: A

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Question 15
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm increases its labor input from 100 to 121 units, and its capital input from 100 to 121 units, what is the new quantity produced?
A. 121
Correct B. 144
C. 169
D. 196

Correct Answer: B

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Question 16
Determine the type of business unit that would be most suitable for a sole trader who wants to expand their business into international markets.
A. Sole Trader
B. Limited Liability Partnership
C. Private Limited Company
Correct D. Public Limited Company

Correct Answer: D

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Question 17
A bank offers a loan of ₦500,000 at an annual interest rate of 12% compounded quarterly. Calculate the amount that would be repaid after 2 years.
Correct A. ₦562,419.19
B. ₦562,419.20
C. ₦562,419.21
D. ₦562,419.22

Correct Answer: A

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Question 18
A company's profit is calculated as the difference between its revenue and cost of goods sold. If the company's revenue is ₦1,000,000 and its cost of goods sold is ₦800,000, what is its profit?
A. ₦100,000
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

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Question 19
A container ship has a capacity of 100,000 metric tons. If it is carrying a cargo of 80,000 metric tons, what percentage of its capacity is the cargo occupying?
A. 80%
Correct B. 85%
C. 90%
D. 95%

Correct Answer: B

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Question 20
A company's export revenue is ₦500,000, and its import expenditure is ₦300,000. What is its trade balance?
Correct A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: A

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Question 21
In a perfectly competitive market, the law of diminishing marginal utility implies that the marginal revenue product of a firm's last unit of labor will be less than the marginal product of that unit. What is the consequence of this on the firm's labor demand?
A. The firm will demand more labor to maximize profits.
Correct B. The firm will demand less labor to minimize costs.
C. The firm will demand the same amount of labor to maintain market share.
D. The firm will demand more labor to increase market share.

Correct Answer: B

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Question 22
A company is considering investing in a new project with the following cash flows: Year 0: -₦100,000, Year 1: ₦50,000, Year 2: ₦75,000, Year 3: ₦100,000. What is the project's internal rate of return (IRR)?
A. 15%
B. 20%
Correct C. 25%
D. 30%

Correct Answer: C

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Question 23
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are 100 and 400 respectively, what is the output?
A. 20
B. 40
Correct C. 60
D. 80

Correct Answer: C

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Question 24
A company is considering two different investment projects. Project A has a 10% chance of generating ₦100,000 and a 90% chance of generating ₦0. Project B has a 20% chance of generating ₦50,000 and an 80% chance of generating ₦0. Which project has a higher expected return?
Correct A. Project A
B. Project B
C. Both projects have the same expected return
D. Neither project has a higher expected return

Correct Answer: A

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Question 25
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal revenue function is given by MR = -2Q, what is the firm's optimal price?
A. ₦20
B. ₦30
Correct C. ₦40
D. ₦50

Correct Answer: C

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