POST UTME NOUN 2021 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 2021 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
In a just-in-time (JIT) inventory system, what is the primary goal of the reorder point?
A. To minimize inventory costs
B. To maximize inventory turnover
Correct C. To ensure that stockouts are minimized
D. To reduce lead times

Correct Answer: C

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Question 2
A company has a production capacity of 100 units per day. If the demand rate is 120 units per day, what is the maximum inventory level?
A. 80 units
B. 100 units
C. 120 units
Correct D. 140 units

Correct Answer: D

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Question 3
A bank offers a 5-year fixed deposit account with an interest rate of 8% per annum compounded annually. If the principal amount is ₦100,000, what is the future value of the investment?
A. ₦163,918.19
B. ₦164,918.19
Correct C. ₦165,918.19
D. ₦166,918.19

Correct Answer: C

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Question 4
A sole trader has a business income of ₦500,000 and business expenses of ₦200,000. What is the net profit?
Correct A. ₦300,000
B. ₦250,000
C. ₦200,000
D. ₦150,000

Correct Answer: A

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Question 5
A company has a production cost of ₦100 per unit and a selling price of ₦150 per unit. If the company sells 1,000 units, what is the profit?
A. ₦50,000
B. ₦75,000
C. ₦100,000
Correct D. ₦125,000

Correct Answer: D

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Question 6
In a sole trade business, what is the primary advantage of using a cash register?
Correct A. Improved record-keeping
B. Enhanced customer service
C. Increased sales
D. Reduced inventory costs

Correct Answer: A

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Question 7
A company has a capital of ₦500,000 and wants to issue 10,000 shares of ₦50 each. What is the amount of capital left after issuing the shares?
A. ₦250,000
Correct B. ₦375,000
C. ₦450,000
D. ₦475,000

Correct Answer: B

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Question 8
A bank offers a 5% interest rate on a deposit of ₦10,000 for 2 years. What is the total interest earned?
A. ₦1,000
Correct B. ₦1,050
C. ₦1,100
D. ₦1,200

Correct Answer: B

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Question 9
A company exports 500 units of a product to a foreign country. If the exchange rate is 1 USD = 360 Naira, what is the total value of the export in Naira?
A. ₦180,000
B. ₦180,500
Correct C. ₦181,000
D. ₦182,000

Correct Answer: C

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Question 10
A warehouse has a capacity to store 10,000 units of a product. If 8,000 units are already stored, what percentage of the warehouse is occupied?
A. 60%
B. 70%
Correct C. 80%
D. 90%

Correct Answer: C

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Question 11
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied of that commodity will also increase. However, this increase in quantity supplied is not due to an increase in the quantity of resources used, but rather due to an increase in the efficiency with which the existing resources are used. What is the term for this increase in efficiency?
A. Economies of scale
Correct B. Increasing returns to scale
C. Diminishing returns to scale
D. External economies

Correct Answer: B

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Question 12
A company is considering the introduction of a new product line. The product line will require an initial investment of ₦5 million and will generate annual profits of ₦1.5 million for the next 5 years. What is the net present value (NPV) of the product line, assuming a discount rate of 10%?
Correct A. ₦2,500
B. ₦3,000
C. ₦3,500
D. ₦4,000

Correct Answer: A

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Question 13
A firm is considering the use of just-in-time (JIT) inventory management system. The JIT system will reduce inventory costs by ₦200,000 per year, but will also increase the cost of ordering by ₦150,000 per year. What is the net benefit of the JIT system?
Correct A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000

Correct Answer: A

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Question 14
A company is considering the use of a warehouse management system (WMS) to manage its inventory. The WMS will cost ₦1.2 million to implement and will generate annual savings of ₦300,000. What is the payback period of the WMS?
A. 4 years
Correct B. 5 years
C. 6 years
D. 7 years

Correct Answer: B

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Question 15
A firm is considering the use of a total quality management (TQM) approach to improve its quality. The TQM approach will cost ₦500,000 to implement and will generate annual savings of ₦200,000. What is the return on investment (ROI) of the TQM approach?
A. 40%
B. 50%
Correct C. 60%
D. 70%

Correct Answer: C

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Question 16
The concept of 'caveat emptor' is most closely associated with which of the following areas of consumer protection?
A. Consumer Rights Act
B. Unfair Contract Terms Act
Correct C. Sale of Goods Act
D. Unfair Trading Regulations

Correct Answer: C

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Question 17
A company is considering exporting its products to a foreign market. Which of the following is a key consideration in the decision-making process?
Correct A. Market size and growth potential
B. Competitor analysis
C. Cultural and language differences
D. Taxes and tariffs

Correct Answer: A

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Question 18
A consumer purchases a product online and receives a defective item. Which of the following is the consumer's primary course of action?
Correct A. Return the product and request a refund
B. Contact the seller and request a replacement
C. File a complaint with the consumer protection agency
D. Take the seller to court

Correct Answer: A

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Question 19
A company is considering investing in a new market. Which of the following is a key factor in determining the market's attractiveness?
Correct A. Market size and growth potential
B. Competitor analysis
C. Cultural and language differences
D. Taxes and tariffs

Correct Answer: A

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Question 20
A consumer is considering purchasing a product from a foreign seller. Which of the following is a key consideration in the decision-making process?
Correct A. Product quality and features
B. Price and shipping costs
C. Cultural and language differences
D. Taxes and tariffs

Correct Answer: A

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Question 21
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm wants to increase output by 20% while keeping labor constant at 100 units, how much capital should it hire?
A. 150
B. 200
Correct C. 250
D. 300

Correct Answer: C

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Question 22
A company's marketing strategy involves a 20% discount on all products for the first week of a new product launch. If the original price of the product is ₦500, what is the new price after the discount?
A. ₦400
Correct B. ₦420
C. ₦450
D. ₦480

Correct Answer: B

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Question 23
A firm's revenue function is given by R = 2x^2 + 5x - 3, where x is the number of units sold. If the firm wants to maximize revenue, what is the optimal number of units to sell?
A. 1
B. 2
Correct C. 3
D. 4

Correct Answer: C

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Question 24
A company's insurance policy has a deductible of ₦1000. If the company has a claim of ₦5000, how much will it pay out after deducting the deductible?
Correct A. ₦4000
B. ₦4500
C. ₦5000
D. ₦5500

Correct Answer: A

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Question 25
A firm's production function is given by Q = 3L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm wants to increase output by 30% while keeping labor constant at 150 units, how much capital should it hire?
A. 225
B. 250
Correct C. 275
D. 300

Correct Answer: C

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