Practice post utme lautech commerce 2021 Past Questions

Question 1

A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If the company receives a new shipment of 5,000 units, what is the new percentage of the warehouse that is full?

Correct A. 60%

B. 70%

C. 80%

D. 90%

Correct Answer: A

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Question 2

A consumer purchases a product for ₦10,000. The product has a 10% discount for the first 100 customers. If the consumer is the 50th customer, what is the price they will pay?

A. ₦9,000

Correct B. ₦9,500

C. ₦10,000

D. ₦10,500

Correct Answer: B

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Question 3

A company has a loan of ₦5,000,000 with an interest rate of 15% per annum. If the interest is compounded annually, what is the amount of the loan after 5 years?

A. ₦7,987,519

B. ₦8,987,519

Correct C. ₦9,987,519

D. ₦10,987,519

Correct Answer: C

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Question 4

A person purchases a life insurance policy with a premium of ₦50,000 per annum. The policy has a benefit of ₦10,000,000 in the event of the person's death. If the person dies after 10 years, what is the total amount paid by the insurance company?

A. ₦500,000

B. ₦1,000,000

C. ₦5,000,000

Correct D. ₦10,000,000

Correct Answer: D

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Question 5

A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If the company receives a new shipment of 5,000 units, what is the new percentage of the warehouse that is full?

Correct A. 60%

B. 70%

C. 80%

D. 90%

Correct Answer: A

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Question 6

A company's marketing strategy involves a 10% discount on all products for the first 100 customers. If the original price of a product is ₦500, what is the total amount spent by the first 100 customers?

A. ₦45,000

B. ₦50,000

C. ₦55,000

Correct D. ₦60,000

Correct Answer: D

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Question 7

A consumer purchases a product with a price of ₦2,000 and a 5% sales tax. If the consumer pays with a ₦5,000 note, what is the change the consumer will receive?

Correct A. ₦1,500

B. ₦2,000

C. ₦2,500

D. ₦3,000

Correct Answer: A

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Question 8

A bank offers a 6% interest rate on a savings account. If a customer deposits ₦10,000, how much will the customer earn in interest after 1 year?

A. ₦600

B. ₦800

C. ₦1,000

Correct D. ₦1,200

Correct Answer: D

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Question 9

A company exports 500 units of a product to a foreign country. If the product is sold at a price of 20 per unit, and the exchange rate is 1 USD = ₦400, what is the total amount received in naira?

A. ₦10,000,000

B. ₦12,000,000

C. ₦14,000,000

Correct D. ₦16,000,000

Correct Answer: D

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Question 10

A warehouse has 1,000 units of a product stored. If 200 units are sold, and the remaining units are packed into boxes of 20 units each, how many boxes can be filled?

A. 20

B. 30

C. 40

Correct D. 50

Correct Answer: D

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Question 11

In a sole trader business, what is the primary advantage of using a sole proprietorship structure?

A. Limited liability

B. Easy to establish

Correct C. Flexibility in decision-making

D. No tax benefits

Correct Answer: C

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Question 12

A company has a capital structure consisting of 60% debt and 40% equity. If the company's cost of debt is 8% and the cost of equity is 12%, what is the company's weighted average cost of capital (WACC)?

A. 7.2%

Correct B. 8.4%

C. 9.6%

D. 10.8%

Correct Answer: B

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Question 13

A marketing manager is considering two different advertising campaigns for a new product. Campaign A has a budget of ₦1,000,000 and is expected to reach 100,000 people, while Campaign B has a budget of ₦500,000 and is expected to reach 50,000 people. If the cost per person for Campaign A is ₦10 and the cost per person for Campaign B is ₦10, what is the total cost of Campaign A?

Correct A. ₦1,000,000

B. ₦1,500,000

C. ₦2,000,000

D. ₦2,500,000

Correct Answer: A

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Question 14

A company is considering investing in a new project that has a net present value (NPV) of ₦1,500,000 and a payback period of 5 years. If the company's cost of capital is 10%, what is the internal rate of return (IRR) of the project?

A. 15%

Correct B. 16%

C. 17%

D. 18%

Correct Answer: B

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Question 15

A sole trader business has a cash balance of ₦500,000 and accounts payable of ₦200,000. If the business receives a cash inflow of ₦300,000 and pays a cash outflow of ₦150,000, what is the new cash balance?

A. ₦550,000

Correct B. ₦600,000

C. ₦650,000

D. ₦700,000

Correct Answer: B

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Question 16

A sole trader's business is considered a separate legal entity from the owner's personal assets. What is the primary reason for this separation?

A. Limited liability

Correct B. Separation of business and personal finances

C. Tax benefits

D. Increased credibility

Correct Answer: B

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Question 17

A company's articles of association specify the rules for the management of the company. Which of the following is NOT a typical provision in the articles of association?

A. The appointment of directors

B. The issue of shares

C. The payment of dividends

Correct D. The election of the company secretary

Correct Answer: D

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Question 18

A producer specializes in the production of a single product. What is the primary advantage of specialization?

Correct A. Increased efficiency

B. Reduced costs

C. Improved quality

D. Increased flexibility

Correct Answer: A

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Question 19

A marketing strategy involves the creation of a new product. Which of the following is a key consideration in the development of the product?

Correct A. Market research

B. Product design

C. Pricing strategy

D. Distribution channels

Correct Answer: A

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Question 20

A company's marketing mix involves the use of advertising to promote a new product. Which of the following is a key consideration in the development of the advertising campaign?

Correct A. Target audience

B. Advertising medium

C. Message content

D. Budget allocation

Correct Answer: A

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Question 21

A sole trader's business is considered a separate legal entity from its owner. True or False?

A. True

B. False

C. It depends on the jurisdiction

Correct D. A sole trader's business is not a separate legal entity

Correct Answer: D

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Question 22

A company's memorandum of association is a document that outlines the company's

A. objectives and goals

B. structure and management

C. share capital and ownership

Correct D. all of the above

Correct Answer: D

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Question 23

A bank's primary function is to act as a

A. lender of last resort

B. intermediary between savers and borrowers

C. regulator of the financial system

Correct D. all of the above

Correct Answer: D

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Question 24

A life insurance policy is a type of

A. property insurance

B. liability insurance

Correct C. life insurance

D. health insurance

Correct Answer: C

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Question 25

A company's articles of association is a document that outlines the company's

A. objectives and goals

B. structure and management

C. share capital and ownership

Correct D. all of the above

Correct Answer: D

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