POST UTME NOUN 2022 Commerce | Objective

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Question 1
A company's insurance policy includes a clause that requires the company to pay a deductible in the event of a loss. Which of the following types of insurance policies is most likely to include this clause?
A. Liability insurance
B. Property insurance
C. Workers' compensation insurance
D. Business interruption insurance
Question 2
A consumer protection law that prohibits unfair or deceptive acts or practices in the marketplace is known as a _______.
A. Consumer protection law
B. Fair trade law
C. Antitrust law
D. Deceptive trade practices law
Question 3
In a sole trade business, what is the primary advantage of using a sole trader structure?
A. Limited liability
B. Easy to set up
C. Flexibility in decision-making
D. No tax benefits
Question 4
A company has a stock of 500 units of a product. If it sells 20% of the stock, how many units are left?
A. 400
B. 450
C. 500
D. 550
Question 5
A company has a capital of ₦1,000,000. If it issues 10,000 shares of ₦100 each, what is the total number of shares outstanding?
A. 9,000
B. 10,000
C. 11,000
D. 12,000
Question 6
The _______ of a firm refers to the process of producing a specific product or service using a combination of inputs.
A. Production
B. Distribution
C. Marketing
D. Specialization
Question 7
A company is considering the implementation of a just-in-time (JIT) inventory system. Which of the following is a key benefit of JIT?
A. Reduced inventory costs
B. Improved product quality
C. Increased production efficiency
D. Enhanced customer service
Question 8
A business has a policy of paying its employees a bonus of 10% of their salary. If an employee earns ₦50,000 per month, what is the bonus?
A. ₦4,000
B. ₦5,000
C. ₦6,000
D. ₦7,000
Question 9
A company's transportation costs are a significant expense. Which of the following transportation modes is most likely to be used to minimize these costs?
A. Truck transportation
B. Rail transportation
C. Air transportation
D. Water transportation
Question 10
A company's business law requires it to disclose certain information to its customers. Which of the following is an example of a consumer protection law?
A. Truth in advertising law
B. Product liability law
C. Consumer credit law
D. Franchise law
Question 11
A firm uses the following transportation costs per unit: 10 units, 20 units, and 30 units. If the firm produces 100 units and sells 50 units, what is the total transportation cost?
A. ₦1,500
B. ₦2,000
C. ₦2,500
D. ₦3,000
Question 12
A company is considering the implementation of a new marketing strategy. The strategy involves the use of social media to promote the company's products. Which of the following is a key advantage of using social media for marketing?
A. Increased brand awareness
B. Improved customer engagement
C. Enhanced product visibility
D. Reduced marketing costs
Question 13
A sole trader is considering the purchase of a new piece of equipment for their business. The equipment costs ₦150,000 and is expected to last for 5 years. What is the annual depreciation of the equipment?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 14
The Consumer Protection Act of 1999 provides for the establishment of the National Consumer Protection Agency. What is the primary function of this agency?
A. To investigate complaints from consumers
B. To regulate the activities of businesses
C. To provide education and awareness to consumers
D. To establish standards for consumer products
Question 15
A consumer purchases a product with a warranty that covers repairs and replacements for a certain period. Which of the following is a type of insurance that provides protection against financial losses due to unforeseen events?
A. Life insurance
B. Health insurance
C. Property insurance
D. Liability insurance

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