POST UTME UNIBEN 2019 Commerce | Objective

Are you preparing for POST UTME UNIBEN exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
In a perfectly competitive market, the demand curve for a firm's product is its
Correct A. marginal revenue curve
B. marginal cost curve
C. average revenue curve
D. average cost curve

Correct Answer: A

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Question 2
A company's break-even point is the point at which its total revenue equals its
A. total fixed costs
B. total variable costs
Correct C. total costs
D. net income

Correct Answer: C

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Question 3
A firm's supply curve is upward-sloping because as the price of its product increases, it becomes more
A. profitable to produce
Correct B. expensive to produce
C. difficult to produce
D. easy to produce

Correct Answer: B

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Question 4
A company's cash flow statement shows the inflows and outflows of its
Correct A. cash and cash equivalents
B. accounts receivable
C. accounts payable
D. inventory

Correct Answer: A

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Question 5
A firm's return on investment (ROI) is calculated as the ratio of its
Correct A. net income to total assets
B. net income to total equity
C. net income to total liabilities
D. net income to total revenue

Correct Answer: A

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Question 6
A bank's return on equity (ROE) is a measure of its profitability. If a bank's net income is ₦120 million and its total equity is ₦1.2 billion, what is its ROE?
A. 0.10
Correct B. 0.12
C. 0.15
D. 0.20

Correct Answer: B

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Question 7
A company's break-even point (BEP) is the point at which its total revenue equals its total fixed costs. If a company's total fixed costs are ₦500,000 and its selling price is ₦2,000, what is its BEP?
A. 250 units
Correct B. 500 units
C. 750 units
D. 1,000 units

Correct Answer: B

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Question 8
A warehouse's inventory turnover ratio is a measure of its efficiency. If a warehouse's cost of goods sold is ₦10 million and its average inventory is ₦5 million, what is its inventory turnover ratio?
A. 2
Correct B. 3
C. 4
D. 5

Correct Answer: B

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Question 9
A company's cash conversion cycle (CCC) is the time it takes for a company to sell its inventory and collect its accounts receivable. If a company's inventory turnover is 4 times per year and its accounts receivable turnover is 6 times per year, what is its CCC?
A. 60 days
B. 90 days
Correct C. 120 days
D. 180 days

Correct Answer: C

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Question 10
A bank's liquidity ratio is a measure of its ability to meet its short-term obligations. If a bank's current assets are ₦1.5 billion and its current liabilities are ₦1.2 billion, what is its liquidity ratio?
A. 1.25
Correct B. 1.50
C. 1.75
D. 2.00

Correct Answer: B

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Question 11
A sole trader's business is considered a separate legal entity from its owner. True or False?
A. True
Correct B. False
C. Depends on the jurisdiction
D. Not applicable

Correct Answer: B

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Question 12
A company's Memorandum of Association is a document that outlines the company's constitution and rules. True or False?
Correct A. True
B. False
C. Depends on the type of company
D. Not applicable

Correct Answer: A

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Question 13
A marketing strategy that focuses on creating a unique selling proposition (USP) is known as?
A. Segmentation
B. Targeting
C. Positioning
Correct D. Differentiation

Correct Answer: D

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Question 14
A warehouse's inventory turnover ratio is calculated by dividing the cost of goods sold by the average inventory level. True or False?
A. True
Correct B. False
C. Depends on the type of inventory
D. Not applicable

Correct Answer: B

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Question 15
A production process that involves the transformation of raw materials into finished goods is known as?
Correct A. Manufacturing
B. Crafting
C. Assembling
D. Packaging

Correct Answer: A

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Question 16
A sole trader's business is considered a separate legal entity from its owner. Discuss this statement with reference to the concept of limited liability.
A. True
Correct B. False
C. Partially true
D. Depends on the jurisdiction

Correct Answer: B

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Question 17
A company's articles of association may provide for a different class of shares with different rights and privileges. Explain the purpose of this provision.
A. To attract more investors
B. To give existing shareholders more control
Correct C. To provide a different class of shares with different rights and privileges
D. To reduce the company's liability

Correct Answer: C

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Question 18
A bank's cash reserve ratio is the percentage of deposits that it must hold in reserve. Explain the purpose of this requirement.
A. To prevent bank runs
B. To encourage lending
Correct C. To maintain the stability of the financial system
D. To increase the bank's profits

Correct Answer: C

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Question 19
A warehouse's inventory management system uses the first-in, first-out (FIFO) method to track stock levels. Explain the advantages of this method.
A. It is easy to implement
B. It is accurate
Correct C. It minimizes stock losses
D. It maximizes stock turnover

Correct Answer: C

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Question 20
An insurance company's policyholder pays a premium to cover the risk of loss or damage to their property. Explain the concept of risk pooling.
Correct A. The process of spreading risk across a large number of policyholders
B. The process of charging a higher premium to policyholders who are considered high-risk
C. The process of paying out claims to policyholders who have suffered a loss
D. The process of investing premiums in a diversified portfolio

Correct Answer: A

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Question 21
In a sole proprietorship, the owner's personal assets are protected from business liabilities through which legal concept?
A. Separate Legal Entity
B. Limited Liability
Correct C. Unlimited Liability
D. Partnership

Correct Answer: C

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Question 22
A company's articles of association may be amended by a special resolution passed by a majority of at least ______ percent of the shareholders present and voting.
A. 50%
Correct B. 75%
C. 66.67%
D. 90%

Correct Answer: B

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Question 23
A consumer is entitled to a refund or replacement of a defective product under the ______ law.
A. Sale of Goods Act
Correct B. Consumer Protection Act
C. Unfair Contract Terms Act
D. Unfair Trading Regulations

Correct Answer: B

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Question 24
A company may be wound up by the court if it is just and equitable to do so, under the ______ law.
Correct A. Companies Act
B. Insolvency Act
C. Bankruptcy Act
D. Winding-up Act

Correct Answer: A

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Question 25
A sole trader's business is not a separate legal entity from the owner's personal assets, and is therefore subject to ______ liability.
A. Limited
Correct B. Unlimited
C. Joint
D. Several

Correct Answer: B

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