Practice post utme ui commerce 2023 Past Questions

Question 1

A company has a warehouse with a capacity to store 10,000 units of a product. The company uses a first-in-first-out (FIFO) inventory system. If 8,000 units of the product are already stored in the warehouse, and 2,000 units are received in a single shipment, what is the total number of units in the warehouse after the shipment?

A. 8,000

B. 10,000

Correct C. 12,000

D. 14,000

Correct Answer: C

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Question 2

A consumer protection agency receives a complaint from a customer who purchased a product online. The customer alleges that the product was not as described on the website. The agency must determine whether the seller has breached the Consumer Protection Act. Which of the following is a key factor in determining whether the seller has breached the Act?

A. The product was not delivered within the specified timeframe

Correct B. The product was not as described on the website

C. The customer did not read the terms and conditions

D. The customer did not provide sufficient payment

Correct Answer: B

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Question 3

A company is considering the purchase of a new insurance policy to cover its business operations. The policy has a premium of ₦1,200,000 per annum. The company's accountant estimates that the expected loss per annum is ₦500,000. What is the excess of the premium over the expected loss?

A. ₦700,000

B. ₦800,000

C. ₦900,000

Correct D. ₦1,000,000

Correct Answer: D

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Question 4

A sole trader has a business that sells goods to customers. The sole trader uses a cash accounting system. If the sole trader receives ₦10,000 in cash from a customer on 15th February, and the customer's account is credited on 20th February, what is the effect on the sole trader's cash account?

A. The cash account is debited by ₦10,000

Correct B. The cash account is credited by ₦10,000

C. The cash account is not affected

D. The cash account is debited by ₦5,000

Correct Answer: B

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Question 5

A company has a marketing budget of ₦5,000,000 per annum. The company's marketing manager allocates ₦2,000,000 to advertising, ₦1,500,000 to sales promotion, and ₦1,000,000 to public relations. What is the percentage of the marketing budget allocated to advertising?

Correct A. 40%

B. 50%

C. 60%

D. 70%

Correct Answer: A

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Question 6

A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a requirement for registration?

Correct A. Obtain a Tax Identification Number (TIN)

B. Submit a Memorandum of Association

C. File a Certificate of Incorporation

D. Publish a Prospectus

Correct Answer: A

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Question 7

A company's Memorandum of Association contains a clause that restricts the company's power to borrow money. What is the legal effect of this clause?

A. The company can borrow money without restriction

B. The company can borrow money only with the approval of the shareholders

Correct C. The company cannot borrow money at all

D. The company can borrow money only up to a certain amount

Correct Answer: C

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Question 8

A consumer purchases a product from a retailer, but the product is defective. The consumer returns the product to the retailer, who refuses to accept it. What is the consumer's next course of action?

Correct A. File a complaint with the National Consumer Protection Agency

B. Sue the retailer in court

C. Return the product to the manufacturer

D. Post a negative review on social media

Correct Answer: A

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Question 9

A company's Articles of Association contain a clause that requires the company to hold an Annual General Meeting (AGM) within six months of the end of the financial year. What is the legal effect of this clause?

A. The company must hold an AGM within three months of the end of the financial year

Correct B. The company must hold an AGM within six months of the end of the financial year

C. The company must hold an AGM within nine months of the end of the financial year

D. The company is not required to hold an AGM

Correct Answer: B

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Question 10

A consumer purchases a product from a retailer, but the product is not as described. The consumer returns the product to the retailer, who offers a refund. What is the consumer's next course of action?

A. Accept the refund and consider the matter closed

B. Refuse the refund and demand a replacement product

Correct C. Refuse the refund and sue the retailer in court

D. Post a negative review on social media

Correct Answer: C

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Question 11

A company's marketing strategy involves a mix of advertising and public relations. Which of the following is a key benefit of using public relations in a marketing mix?

A. Increased brand awareness

B. Improved customer engagement

Correct C. Enhanced credibility

D. Increased sales

Correct Answer: C

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Question 12

A firm's foreign trade involves exporting goods to a country with a different currency. What is the primary risk associated with this type of trade?

Correct A. Exchange rate risk

B. Country risk

C. Political risk

D. Operational risk

Correct Answer: A

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Question 13

A company uses a just-in-time inventory system to manage its stock levels. What is the primary advantage of this system?

A. Reduced inventory costs

B. Improved customer satisfaction

Correct C. Increased efficiency

D. Enhanced supply chain visibility

Correct Answer: C

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Question 14

A firm's marketing strategy involves a mix of advertising and sales promotions. Which of the following is a key benefit of using sales promotions in a marketing mix?

A. Increased brand awareness

B. Improved customer engagement

C. Enhanced credibility

Correct D. Increased sales

Correct Answer: D

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Question 15

A company's insurance policy covers losses due to natural disasters. What is the primary type of risk covered by this policy?

A. Liability risk

Correct B. Property risk

C. Business interruption risk

D. Cyber risk

Correct Answer: B

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Question 16

In a sole trade business, what is the primary advantage of adopting a sole proprietorship structure?

A. Limited liability

B. Easy setup and registration

Correct C. Flexibility in decision-making

D. Tax benefits

Correct Answer: C

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Question 17

A company is considering the adoption of a new marketing strategy. Which of the following marketing strategies is most likely to increase customer engagement?

A. Content marketing

B. Influencer marketing

Correct C. Social media marketing

D. Email marketing

Correct Answer: C

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Question 18

A consumer purchases a product with a defective component. Which of the following laws is most likely to protect the consumer's rights?

Correct A. Consumer Protection Act

B. Sales of Goods Act

C. Contract Act

D. Torts Act

Correct Answer: A

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Question 19

A company is considering the adoption of a new production process. Which of the following production processes is most likely to increase efficiency?

A. Mass production

B. Batch production

C. Job production

Correct D. Flexible manufacturing system

Correct Answer: D

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Question 20

A business owner is considering the purchase of insurance to protect against business risks. Which of the following types of insurance is most likely to provide the greatest protection?

A. Liability insurance

B. Property insurance

C. Business interruption insurance

Correct D. Professional indemnity insurance

Correct Answer: D

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Question 21

A company is considering a new marketing strategy to increase sales. The strategy involves offering a discount of 10% on all products for a limited period. If the company's current sales revenue is ₦10,000,000 and the cost of goods sold is ₦6,000,000, what is the expected increase in profit after implementing the new strategy?

A. ₦1,000,000

Correct B. ₦1,500,000

C. ₦2,000,000

D. ₦2,500,000

Correct Answer: B

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Question 22

A firm is considering a new production process that will increase its output by 20% but will also increase its costs by 15%. If the firm's current profit is ₦5,000,000, what will be its expected profit after implementing the new process?

A. ₦4,250,000

Correct B. ₦5,250,000

C. ₦6,250,000

D. ₦7,250,000

Correct Answer: B

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Question 23

A consumer protection agency is investigating a complaint about a company's advertising practices. The company has been accused of making false claims about its products. Which of the following is a legal consequence of the company's actions?

A. The company will be fined ₦1,000,000

Correct B. The company will be required to pay damages to affected consumers

C. The company will be banned from advertising for 6 months

D. The company will be required to recall all affected products

Correct Answer: B

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Question 24

A warehouse is storing 500 boxes of goods, each weighing 20 kg. If the warehouse has a maximum capacity of 10,000 kg, what is the maximum number of boxes that can be stored?

A. 250 boxes

B. 300 boxes

Correct C. 400 boxes

D. 500 boxes

Correct Answer: C

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Question 25

A company is considering a new business strategy that involves outsourcing its production to a third-party supplier. If the company's current production costs are ₦10,000,000 and the outsourcing costs are ₦8,000,000, what is the expected increase in profit?

A. ₦1,000,000

B. ₦1,500,000

Correct C. ₦2,000,000

D. ₦2,500,000

Correct Answer: C

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