POST UTME NILE UNIVERSITY 2024 Commerce | Objective

Are you preparing for POST UTME NILE UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2024 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
A company is considering the introduction of a new product line. The product has a high potential for growth, but it also carries a high level of risk. Which of the following risk management strategies would be most appropriate for this situation?
Correct A. Diversification
B. Hedging
C. Speculation
D. Risk avoidance

Correct Answer: A

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Question 2
A consumer purchases a product from a retailer, but the product is defective. The consumer returns the product to the retailer, who offers a refund or replacement. Which of the following is a legal requirement for the retailer in this situation?
Correct A. The retailer must provide a full refund
B. The retailer must replace the product
C. The retailer must provide a partial refund
D. The retailer has no legal obligation

Correct Answer: A

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Question 3
A company is considering the introduction of a new marketing strategy. The strategy involves creating a social media campaign to promote the company's products. Which of the following is a key benefit of this strategy?
A. Increased brand awareness
Correct B. Improved customer engagement
C. Enhanced product sales
D. Reduced marketing costs

Correct Answer: B

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Question 4
A company is considering the introduction of a new business unit. The business unit will be responsible for managing the company's logistics and supply chain. Which of the following is a key advantage of this business unit?
Correct A. Improved efficiency
B. Enhanced customer satisfaction
C. Increased profitability
D. Reduced costs

Correct Answer: A

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Question 5
A company is considering the introduction of a new insurance policy. The policy will provide coverage for the company's employees in the event of an accident. Which of the following is a key benefit of this policy?
A. Reduced employee turnover
B. Improved employee morale
Correct C. Enhanced employee safety
D. Increased employee productivity

Correct Answer: C

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Question 6
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will
A. decrease
Correct B. increase
C. remain constant
D. move in the opposite direction

Correct Answer: B

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Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?
A. 24
B. 36
Correct C. 48
D. 64

Correct Answer: C

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Question 8
A consumer's budget constraint is given by the equation 2x + 3y = 12. If the consumer's current income is 12 and the price of good x is 2, what is the consumer's current consumption of good y?
A. 2
Correct B. 4
C. 6
D. 8

Correct Answer: B

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Question 9
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is 20, what is the firm's current quantity demanded?
A. 40
Correct B. 60
C. 80
D. 100

Correct Answer: B

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Question 10
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 25 and K = 16, respectively, what is the firm's current output?
A. 40
B. 48
Correct C. 56
D. 64

Correct Answer: C

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Question 11
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. Which of the following is a correct example of comparative advantage?
A. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 100 units of good Y.
Correct B. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 50 units of good Y.
C. Country A produces 50 units of good X and 100 units of good Y, while Country B produces 100 units of good X and 50 units of good Y.
D. Country A produces 50 units of good X and 100 units of good Y, while Country B produces 50 units of good X and 50 units of good Y.

Correct Answer: B

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Question 12
A firm's break-even point is the point at which its total revenue equals its total fixed costs. If a firm's total fixed costs are ₦100,000 and its selling price is ₦200, what is the break-even point in units sold?
A. 500 units
Correct B. 750 units
C. 1000 units
D. 1250 units

Correct Answer: B

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Question 13
A consumer protection agency is responsible for enforcing laws that protect consumers from unfair business practices. Which of the following is a type of unfair business practice?
A. False advertising
B. Price-fixing
C. Bait-and-switch
Correct D. All of the above

Correct Answer: D

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Question 14
A firm's marketing mix consists of four elements: product, price, promotion, and place. Which of the following is a type of product?
A. Service
B. Good
C. Experience
Correct D. All of the above

Correct Answer: D

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Question 15
A firm's financial statements include the balance sheet, income statement, and cash flow statement. Which of the following is a type of financial statement?
A. Balance sheet
B. Income statement
C. Cash flow statement
Correct D. All of the above

Correct Answer: D

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Question 16
A firm's supply chain management involves the coordination of activities from raw materials to end customers. Which of the following is a type of supply chain management?
A. Just-in-time
B. Just-in-case
C. Vendor-managed inventory
Correct D. All of the above

Correct Answer: D

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Question 17
A firm's logistics management involves the planning and execution of the movement and storage of goods. Which of the following is a type of logistics management?
A. Transportation
B. Warehousing
C. Inventory management
Correct D. All of the above

Correct Answer: D

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Question 18
A firm's communication management involves the exchange of information between the firm and its stakeholders. Which of the following is a type of communication management?
A. Internal communication
B. External communication
C. Public relations
Correct D. All of the above

Correct Answer: D

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Question 19
A firm's human resource management involves the management of employees within the firm. Which of the following is a type of human resource management?
A. Recruitment
B. Selection
C. Training and development
Correct D. All of the above

Correct Answer: D

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Question 20
A firm's financial management involves the planning and control of the firm's financial resources. Which of the following is a type of financial management?
A. Investment
B. Financing
C. Dividend policy
D. All of the above

Correct Answer: VIEW ANSWER

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Question 21
A company's marketing strategy involves creating a new product line to appeal to a younger demographic. However, the production costs are higher than expected, and the company is considering a price increase. What type of pricing strategy is the company likely to adopt?
A. Penetration pricing
B. Skim pricing
C. Price skimming
Correct D. Value-based pricing

Correct Answer: D

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Question 22
A firm's production function is given by Q = 2L^0.5 * K^0.5, where Q is output, L is labor, and K is capital. If the firm wants to increase output by 20% while keeping labor constant, what percentage increase in capital is required?
A. 10%
B. 15%
Correct C. 20%
D. 25%

Correct Answer: C

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Question 23
A consumer protection agency receives a complaint about a company's misleading advertising. The agency finds that the company has made false claims about the product's features and benefits. What type of consumer protection law is being violated?
Correct A. Deceptive advertising
B. False labeling
C. Unfair competition
D. Bait and switch

Correct Answer: A

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Question 24
A company's insurance policy covers losses due to natural disasters, such as hurricanes and floods. However, the policy excludes losses due to earthquakes. What type of risk is the company exposed to?
A. Uninsurable risk
B. Insurable risk
Correct C. Non-insurable risk
D. Self-insured risk

Correct Answer: C

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Question 25
A firm's marketing strategy involves creating a new product line to appeal to a younger demographic. However, the production costs are higher than expected, and the company is considering a price increase. What type of pricing strategy is the company likely to adopt?
A. Penetration pricing
B. Skim pricing
C. Price skimming
Correct D. Value-based pricing

Correct Answer: D

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