POST UTME NOUN 2018 Commerce | Objective

Are you preparing for POST UTME NOUN exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
A company's marketing strategy involves a 4P approach. Which of the following is NOT one of the 4Ps?
A. Product
B. Price
C. Place
Correct D. Profit

Correct Answer: D

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Question 2
A firm's cost of capital is 10% per annum. If it invests in a project with a 12% return, what is the expected increase in the firm's wealth?
Correct A. 2%
B. 5%
C. 8%
D. 10%

Correct Answer: A

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Question 3
A company's insurance policy has a deductible of ₦10,000. If it makes a claim of ₦50,000, what is the amount the insurance company will pay?
A. ₦30,000
Correct B. ₦40,000
C. ₦50,000
D. ₦60,000

Correct Answer: B

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Question 4
A firm's marketing mix involves a product with a unique selling proposition (USP). Which of the following is NOT a characteristic of a USP?
A. Uniqueness
B. Novelty
Correct C. Convenience
D. Quality

Correct Answer: C

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Question 5
A company's financial statements show a net income of ₦100,000 and a total assets of ₦500,000. What is the return on assets (ROA) of the company?
A. 10%
Correct B. 15%
C. 20%
D. 25%

Correct Answer: B

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Question 6
A firm specializes in producing only one product. This is an example of
A. Economies of scale
B. Product differentiation
Correct C. Production specialization
D. Division of labor

Correct Answer: C

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Question 7
A bank's primary function is to act as a
A. Central bank
Correct B. Commercial bank
C. Investment bank
D. Merchant bank

Correct Answer: B

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Question 8
A warehouse is a place where goods are stored for
A. Manufacturing
B. Transportation
Correct C. Storage
D. Distribution

Correct Answer: C

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Question 9
A consumer protection law is a law that protects the rights of
Correct A. Consumers
B. Producers
C. Distributors
D. Retailers

Correct Answer: A

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Question 10
A marketing strategy is a plan that outlines how a company will
Correct A. Increase sales
B. Decrease costs
C. Improve customer service
D. Develop new products

Correct Answer: A

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Question 11
A commercial bank's primary function is to act as a "warehouse" for its customers' funds. Which of the following best describes this function?
A. To provide loans to its customers
Correct B. To act as a custodian of its customers' funds
C. To facilitate the transfer of funds between customers
D. To provide investment advice to its customers

Correct Answer: B

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Question 12
A company is considering the introduction of a new product line. The product line is expected to generate ₦5 million in revenue in the first year, with a growth rate of 10% per annum for the next three years. What is the present value of the expected cash flows from the product line, assuming a discount rate of 12%?
A. ₦1,500,000
B. ₦2,000,000
Correct C. ₦3,500,000
D. ₦4,000,000

Correct Answer: C

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Question 13
A sole trader is considering the purchase of a new piece of equipment for ₦10,000. The equipment is expected to generate additional revenue of ₥0,000 per annum for the next five years. What is the payback period of the investment?
A. 2 years
Correct B. 3 years
C. 4 years
D. 5 years

Correct Answer: B

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Question 14
A company is considering the introduction of a new marketing campaign. The campaign is expected to generate ₥1 million in revenue in the first year, with a growth rate of 15% per annum for the next three years. What is the present value of the expected cash flows from the campaign, assuming a discount rate of 10%?
A. ₦1,200,000
B. ₦2,500,000
Correct C. ₦3,800,000
D. ₦4,500,000

Correct Answer: C

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Question 15
A consumer protection agency is considering the introduction of a new regulation to protect consumers from unfair business practices. The regulation is expected to generate ₥0.5 million in revenue in the first year, with a growth rate of 12% per annum for the next three years. What is the present value of the expected cash flows from the regulation, assuming a discount rate of 8%?
A. ₦1,000,000
B. ₦2,200,000
Correct C. ₦3,500,000
D. ₦4,800,000

Correct Answer: C

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Question 16
In a perfectly competitive market, the supply curve is a
Correct A. Horizontal line
B. Vertical line
C. U-shaped curve
D. S-shaped curve

Correct Answer: A

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Question 17
A firm's revenue is maximized when its marginal revenue equals its
Correct A. Marginal cost
B. Average variable cost
C. Average fixed cost
D. Marginal product of labor

Correct Answer: A

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Question 18
The diagram below shows the demand and supply curves for a perfectly competitive market. What is the equilibrium price?
A. ₦10
Correct B. ₦15
C. ₦20
D. ₦25

Correct Answer: B

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Question 19
A firm's marginal cost curve is given by the equation MC = 2q + 3. If the firm produces 5 units of output, what is its marginal cost?
A. ₦15
Correct B. ₦20
C. ₦25
D. ₦30

Correct Answer: B

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Question 20
A firm's revenue function is given by the equation R(q) = 20q - 2q^2. What is the firm's marginal revenue when it produces 4 units of output?
A. ₦60
B. ₦80
Correct C. ₦100
D. ₦120

Correct Answer: C

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Question 21
The Consumer Protection Act of 1999 provides for the establishment of the National Consumer Protection Agency. Which of the following is a function of the Agency?
Correct A. To investigate complaints from consumers
B. To provide education and awareness on consumer rights
C. To regulate the activities of businesses
D. To provide compensation to consumers who have been harmed

Correct Answer: A

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Question 22
A company is considering the introduction of a new product. The product is expected to generate significant revenue, but it also poses a risk to the environment. Which of the following is the most appropriate decision for the company?
A. To proceed with the introduction of the product
Correct B. To conduct a thorough environmental impact assessment
C. To abandon the project due to the risk
D. To seek the advice of a consultant

Correct Answer: B

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Question 23
A bank is considering the introduction of a new credit card product. The product is expected to generate significant revenue, but it also poses a risk to the bank's reputation. Which of the following is the most appropriate decision for the bank?
A. To proceed with the introduction of the product
Correct B. To conduct a thorough risk assessment
C. To abandon the project due to the risk
D. To seek the advice of a regulator

Correct Answer: B

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Question 24
A company is considering the introduction of a new logistics system. The system is expected to reduce costs and improve efficiency, but it also poses a risk to the company's reputation. Which of the following is the most appropriate decision for the company?
A. To proceed with the introduction of the system
Correct B. To conduct a thorough risk assessment
C. To abandon the project due to the risk
D. To seek the advice of a consultant

Correct Answer: B

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Question 25
A company is considering the introduction of a new product. The product is expected to generate significant revenue, but it also poses a risk to the environment. Which of the following is the most appropriate decision for the company?
A. To proceed with the introduction of the product
Correct B. To conduct a thorough environmental impact assessment
C. To abandon the project due to the risk
D. To seek the advice of a consultant

Correct Answer: B

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