POST UTME UI 2018 Commerce | Objective

Are you preparing for POST UTME UI 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.

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader's business is considered a separate legal entity from its owner. What is the primary reason for this separation?
Correct A. To protect the owner's personal assets from business liabilities
B. To allow the business to operate independently of the owner's personal life
C. To enable the business to enter into contracts without the owner's signature
D. To facilitate the transfer of ownership to another person

Correct Answer: A

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Question 2
A company is considering the introduction of a new product line. What type of risk is the company facing?
A. Financial risk
B. Operational risk
Correct C. Strategic risk
D. Compliance risk

Correct Answer: C

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Question 3
A consumer has purchased a product that has a defect. What is the primary remedy available to the consumer?
A. Damages
B. Injunction
Correct C. Rescission
D. Specific performance

Correct Answer: C

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Question 4
A bank is considering the introduction of a new loan product. What type of analysis should the bank conduct?
A. Break-even analysis
B. Sensitivity analysis
Correct C. Scenario analysis
D. Decision tree analysis

Correct Answer: C

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Question 5
A company is considering the outsourcing of its logistics operations. What type of risk is the company facing?
Correct A. Operational risk
B. Strategic risk
C. Financial risk
D. Compliance risk

Correct Answer: A

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Question 6
The Consumer Protection Act of 1999 provides for the protection of consumers in Nigeria. Which of the following is a fundamental principle of consumer protection?
Correct A. The right to safety
B. The right to be heard
C. The right to information
D. The right to choose

Correct Answer: A

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Question 7
A company is registered under the Companies and Allied Matters Act (CAMA) of 1990. What is the primary purpose of registering a company under CAMA?
A. To obtain a business license
B. To obtain a tax clearance certificate
Correct C. To obtain a certificate of incorporation
D. To obtain a patent

Correct Answer: C

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Question 8
A bank is required to maintain a minimum capital adequacy ratio of 10% under the Banking and Other Financial Institutions Act (BOFIA) of 1991. What is the purpose of this requirement?
A. To ensure the bank's liquidity
B. To ensure the bank's solvency
Correct C. To ensure the bank's capital adequacy
D. To ensure the bank's profitability

Correct Answer: C

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Question 9
A company is required to file its annual returns with the Corporate Affairs Commission (CAC) under the Companies and Allied Matters Act (CAMA) of 1990. What is the purpose of filing annual returns?
A. To update the company's register of members
B. To update the company's register of directors
C. To update the company's register of charges
Correct D. To update the company's financial statements

Correct Answer: D

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Question 10
A consumer is entitled to a refund of the price paid for a defective product under the Consumer Protection Act of 1999. What is the time limit for making a claim for a refund?
A. One year from the date of purchase
Correct B. Two years from the date of purchase
C. Three years from the date of purchase
D. Four years from the date of purchase

Correct Answer: B

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Question 11
The concept of 'moral hazard' in insurance is closely related to which of the following?
A. Adverse selection
Correct B. Moral hazard
C. Risk aversion
D. Diversification

Correct Answer: B

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Question 12
A company's financial statements are audited annually. Which of the following is a primary objective of the audit?
A. To ensure compliance with tax laws
Correct B. To verify the accuracy of financial statements
C. To identify areas for cost reduction
D. To assess the company's creditworthiness

Correct Answer: B

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Question 13
A consumer purchases a product online and receives a defective item. Which of the following is the consumer's best course of action?
Correct A. Return the product and request a refund
B. Contact the manufacturer directly
C. File a complaint with the consumer protection agency
D. Post a negative review online

Correct Answer: A

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Question 14
A company is considering investing in a new project. Which of the following is a key factor in determining the project's viability?
A. The project's expected return on investment
B. The project's risk level
Correct C. The project's cash flow projections
D. The project's market demand

Correct Answer: C

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Question 15
A bank is considering issuing a new credit card product. Which of the following is a key consideration in determining the product's pricing?
A. The product's expected demand
B. The product's risk level
C. The product's target market
Correct D. The product's interest rate

Correct Answer: D

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Question 16
A bank's cash reserve ratio is 20%. If the bank has a total deposit of ₦100,000,000, how much of this amount will be held in reserve?
Correct A. ₦20,000,000
B. ₦30,000,000
C. ₦40,000,000
D. ₦50,000,000

Correct Answer: A

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Question 17
A firm specializes in producing only one product. If the marginal cost of producing the product is ₦50 and the marginal revenue is ₦60, what is the profit-maximizing quantity?
A. 10 units
Correct B. 20 units
C. 30 units
D. 40 units

Correct Answer: B

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Question 18
A warehouse has a storage capacity of 1000 units. If the warehouse is currently storing 500 units, what is the maximum number of units that can be added without exceeding the storage capacity?
A. 200 units
B. 300 units
C. 400 units
Correct D. 500 units

Correct Answer: D

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Question 19
A firm uses a just-in-time inventory system. If the lead time is 5 days and the demand rate is 100 units per day, what is the optimal order quantity?
A. 500 units
B. 750 units
C. 1000 units
Correct D. 1250 units

Correct Answer: D

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Question 20
A firm uses a transportation cost of ₦10 per unit for transportation from the factory to the warehouse. If the factory produces 1000 units and the warehouse is 10 km away, what is the total transportation cost?
A. ₦10,000
B. ₦20,000
C. ₦30,000
Correct D. ₦40,000

Correct Answer: D

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Question 21
In a sole trader business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
Correct B. Flexibility in decision-making
C. Easy to set up and maintain
D. No tax benefits

Correct Answer: B

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Question 22
A company is considering the introduction of a new product line. What is the primary factor that the company should consider before making a decision?
A. Market demand
B. Competitor analysis
Correct C. Financial feasibility
D. Regulatory compliance

Correct Answer: C

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Question 23
A consumer has purchased a product that has a defect. What is the consumer's right under the Consumer Protection Act?
Correct A. To return the product for a full refund
B. To claim damages for loss of use
C. To seek a replacement product
D. To cancel the contract

Correct Answer: A

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Question 24
A company is considering the use of a new marketing strategy. What is the primary benefit of using social media marketing?
A. Increased brand awareness
Correct B. Improved customer engagement
C. Enhanced customer loyalty
D. Increased sales revenue

Correct Answer: B

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Question 25
A company is considering the use of a new transportation mode. What is the primary advantage of using air transportation?
Correct A. Faster delivery times
B. Increased security
C. Reduced fuel costs
D. Improved customer service

Correct Answer: A

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