Practice post utme nile university commerce 2020 Past Questions

Question 1

Under the Consumer Protection Act, what is the primary responsibility of the Consumer Protection Council?

A. To regulate consumer prices

Correct B. To protect consumers from unfair business practices

C. To promote consumer education and awareness

D. To provide consumer redress and compensation

Correct Answer: B

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Question 2

A company is accused of false advertising. Which of the following is a legal consequence?

A. The company must pay a fine of ₦100,000

B. The company must withdraw the advertisement

C. The company must provide evidence of the advertisement's truthfulness

Correct D. The company must pay damages to affected consumers

Correct Answer: D

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Question 3

A consumer purchases a product online. What is the consumer's right under the Consumer Protection Act?

A. To return the product within 7 days

B. To claim a refund within 30 days

C. To exchange the product for a different model

Correct D. To seek compensation for any loss or damage

Correct Answer: D

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Question 4

A company engages in unfair business practices. What is the role of the Consumer Protection Council?

Correct A. To investigate and prosecute the company

B. To mediate between the company and affected consumers

C. To provide consumer education and awareness

D. To regulate consumer prices

Correct Answer: A

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Question 5

A consumer is dissatisfied with a product. What is the consumer's right under the Consumer Protection Act?

Correct A. To seek compensation for any loss or damage

B. To return the product within 7 days

C. To exchange the product for a different model

D. To claim a refund within 30 days

Correct Answer: A

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Question 6

A bank's return on equity (ROE) is calculated as net income divided by shareholder equity. If a bank has a net income of ₦120 million and shareholder equity of ₦1.2 billion, what is its ROE?

A. 0.10

Correct B. 0.12

C. 0.15

D. 0.20

Correct Answer: B

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Question 7

A company's cost of goods sold (COGS) is ₦500 million, and its selling, general, and administrative expenses (SG&A) are ₦200 million. If the company's total revenue is ₦1.5 billion, what is its gross profit margin?

A. 0.20

B. 0.25

Correct C. 0.30

D. 0.35

Correct Answer: C

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Question 8

A consumer protection agency is investigating a complaint about a company's unfair business practices. The agency has collected evidence that the company has engaged in price fixing, which is a violation of the Consumer Protection Act. What is the likely outcome of the investigation?

A. The company will be fined ₦1 million.

Correct B. The company will be required to pay restitution to affected consumers.

C. The company will be forced to cease operations.

D. The agency will drop the investigation.

Correct Answer: B

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Question 9

A sole proprietorship is a type of business ownership where one individual owns and operates the business. What are the advantages of a sole proprietorship?

A. Easy to set up, low startup costs, and unlimited personal liability.

Correct B. Easy to set up, low startup costs, and limited personal liability.

C. Easy to set up, low startup costs, and no personal liability.

D. Difficult to set up, high startup costs, and unlimited personal liability.

Correct Answer: B

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Question 10

A company has a 10% dividend payout ratio, and its earnings per share (EPS) is ₦5. What is the expected dividend per share?

A. ₦0.50

Correct B. ₦0.60

C. ₦0.70

D. ₦0.80

Correct Answer: B

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Question 11

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

A. Limited liability

B. Easy setup and registration

Correct C. Flexibility in decision-making

D. Tax benefits

Correct Answer: C

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Question 12

A company is considering the introduction of a new product line. Which of the following marketing strategies would be most appropriate for this situation?

A. Market penetration

B. Market development

Correct C. Product development

D. Diversification

Correct Answer: C

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Question 13

A consumer has purchased a product that has a defect. Which of the following laws would protect the consumer's rights?

A. Sale of Goods Act

Correct B. Consumer Protection Act

C. Contract Act

D. Tort Act

Correct Answer: B

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Question 14

A company has a warehouse with a capacity of 10,000 units. If the company receives an order for 5,000 units, what is the minimum number of pallets required to fulfill the order?

A. 2 pallets

Correct B. 3 pallets

C. 4 pallets

D. 5 pallets

Correct Answer: B

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Question 15

A company is considering the use of a just-in-time (JIT) inventory system. Which of the following benefits would be most relevant to the company?

Correct A. Reduced inventory costs

B. Improved product quality

C. Increased flexibility in production

D. Enhanced customer satisfaction

Correct Answer: A

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Question 16

A company is considering the purchase of a new machine that will cost ₦5 million. The machine has a useful life of 5 years and will be sold for ₦1.5 million at the end of that period. The company expects to use the machine for 8 hours a day, 5 days a week. If the machine's operating cost is ₦10,000 per hour, calculate the annual depreciation of the machine using the straight-line method.

A. ₦800,000

Correct B. ₦1,000,000

C. ₦1,200,000

D. ₦1,500,000

Correct Answer: B

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Question 17

A consumer protection agency has received a complaint from a customer who purchased a product online. The customer alleges that the product was not as described and was defective. The agency has gathered evidence that the product was indeed defective and that the seller had made false claims about its quality. What is the most appropriate course of action for the agency?

A. Issue a warning to the seller

B. Order the seller to refund the customer's money

C. Ban the seller from operating online

Correct D. Prosecute the seller for false advertising

Correct Answer: D

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Question 18

A company is considering the launch of a new product in a foreign market. The company has conducted market research and has determined that the product will be successful in the target market. However, the company is concerned about the potential risks associated with exporting the product, including the risk of intellectual property theft and the risk of non-payment by the foreign buyer. What is the most appropriate course of action for the company?

A. Negotiate a contract with the foreign buyer that includes a payment guarantee

B. Use a third-party logistics provider to manage the export process

Correct C. Implement a robust intellectual property protection strategy

D. Conduct further market research to better understand the risks and opportunities

Correct Answer: C

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Question 19

A company is considering the use of a new marketing strategy that involves the use of social media influencers to promote its products. The company has determined that the strategy will be effective in reaching its target market and increasing sales. However, the company is concerned about the potential risks associated with the strategy, including the risk of negative publicity and the risk of non-compliance with advertising regulations. What is the most appropriate course of action for the company?

A. Partner with a social media influencer who has a large following in the target market

B. Use a social media management platform to monitor and respond to online reviews

C. Develop a comprehensive advertising strategy that includes a mix of online and offline channels

Correct D. Conduct a thorough risk assessment to identify and mitigate potential risks

Correct Answer: D

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Question 20

A company is considering the purchase of a new piece of equipment that will cost ₦2 million. The company expects to use the equipment for 5 years and will sell it for ₦500,000 at the end of that period. If the company's cost of capital is 10% per annum, what is the net present value of the investment?

Correct A. ₦1,500,000

B. ₦1,800,000

C. ₦2,000,000

D. ₦2,500,000

Correct Answer: A

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Question 21

A company is considering two marketing strategies: Strategy A, which involves a 10% increase in advertising expenditure, and Strategy B, which involves a 20% increase in sales promotions. If the company's current advertising expenditure is ₦1,500,000 and sales promotions expenditure is ₦800,000, which strategy would result in a higher total marketing expenditure?

A. Strategy A

Correct B. Strategy B

C. Both strategies would result in the same total marketing expenditure

D. Neither strategy would result in a higher total marketing expenditure

Correct Answer: B

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Question 22

A firm is considering the introduction of a new product. The product's demand is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm wants to maximize its revenue, what price should it charge for the product?

A. ₦20

B. ₦30

Correct C. ₦40

D. ₦50

Correct Answer: C

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Question 23

A company has two warehouses, A and B, with capacities of 10,000 units and 5,000 units, respectively. If the company receives an order for 8,000 units, how should it allocate the order between the two warehouses?

Correct A. Allocate 4,000 units to Warehouse A and 4,000 units to Warehouse B

B. Allocate 6,000 units to Warehouse A and 2,000 units to Warehouse B

C. Allocate 8,000 units to Warehouse A

D. Allocate 8,000 units to Warehouse B

Correct Answer: A

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Question 24

A bank offers a 5% annual interest rate on deposits. If a customer deposits ₦10,000 for 2 years, how much interest will the customer earn?

Correct A. ₦1,000

B. ₦2,000

C. ₦3,000

D. ₦4,000

Correct Answer: A

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Question 25

A firm produces two products, X and Y, using two inputs, labor and capital. The production functions are given by the equations QX = 2L^0.5K^0.5 and QY = 3L^0.75K^0.25. If the firm has 100 units of labor and 50 units of capital, how many units of product X and product Y should it produce?

Correct A. QX = 10, QY = 15

B. QX = 15, QY = 10

C. QX = 20, QY = 20

D. QX = 25, QY = 25

Correct Answer: A

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