Practice post utme uniben commerce 2020 Past Questions

Question 1

A sole trader's business is considered a separate legal entity from its owner. Which of the following is a consequence of this separation?

Correct A. The owner is personally liable for the business's debts.

B. The business is taxed separately from its owner.

C. The owner has unlimited liability for the business's actions.

D. The business is not required to file annual accounts.

Correct Answer: A

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Question 2

A company has a warehouse with a capacity of 10,000 units. If it receives a shipment of 8,000 units, what is the new stock level?

A. 8000

Correct B. 10000

C. 12000

D. 15000

Correct Answer: B

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Question 3

A consumer purchases a product with a recommended retail price of ₦5,000. If the product is on sale for 20% off, how much will the consumer pay?

Correct A. ₦4000

B. ₦4500

C. ₦5000

D. ₦5500

Correct Answer: A

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Question 4

A company produces two products, A and B. Product A requires 2 hours of labor and 3 hours of machine time, while product B requires 3 hours of labor and 2 hours of machine time. If the company has 120 hours of labor and 180 hours of machine time available, how many units of product A can be produced?

A. 30

B. 40

Correct C. 50

D. 60

Correct Answer: C

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Question 5

A company 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 safety stock level?

A. 500

Correct B. 750

C. 1000

D. 1250

Correct Answer: B

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Question 6

A sole trader's business is not registered with the Corporate Affairs Commission (CAC). What is the legal implication of this?

A. The business is not entitled to limited liability.

B. The business is not entitled to issue share certificates.

Correct C. The business is not entitled to sue or be sued in its own name.

D. The business is not entitled to pay taxes.

Correct Answer: C

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Question 7

A company's Memorandum and Articles of Association are not registered with the Corporate Affairs Commission (CAC). What is the legal implication of this?

A. The company is not entitled to issue share certificates.

Correct B. The company is not entitled to sue or be sued in its own name.

C. The company is not entitled to limited liability.

D. The company is not entitled to pay taxes.

Correct Answer: B

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Question 8

A company's Memorandum and Articles of Association are not registered with the Corporate Affairs Commission (CAC). What is the legal implication of this?

A. The company is not entitled to issue share certificates.

B. The company is not entitled to sue or be sued in its own name.

Correct C. The company is not entitled to limited liability.

D. The company is not entitled to pay taxes.

Correct Answer: C

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Question 9

A company's Memorandum and Articles of Association are not registered with the Corporate Affairs Commission (CAC). What is the legal implication of this?

A. The company is not entitled to issue share certificates.

B. The company is not entitled to sue or be sued in its own name.

C. The company is not entitled to limited liability.

Correct D. The company is not entitled to pay taxes.

Correct Answer: D

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Question 10

A company's Memorandum and Articles of Association are not registered with the Corporate Affairs Commission (CAC). What is the legal implication of this?

Correct A. The company is not entitled to issue share certificates.

B. The company is not entitled to sue or be sued in its own name.

C. The company is not entitled to limited liability.

D. The company is not entitled to pay taxes.

Correct Answer: A

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Question 11

The concept of specialization in production is closely related to the idea of comparative advantage. Explain how specialization leads to increased productivity and efficiency in the production process.

A. Specialization leads to increased productivity and efficiency by allowing firms to focus on producing a specific good or service, thereby reducing production costs and improving quality.

B. Specialization leads to decreased productivity and efficiency by limiting the range of goods and services produced, thereby reducing market share and revenue.

C. Specialization has no impact on productivity and efficiency, as it is solely dependent on the availability of resources and labor.

Correct D. Specialization leads to increased productivity and efficiency by allowing firms to take advantage of economies of scale and scope.

Correct Answer: D

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Question 12

A company has a total of ₦1,000,000 in its bank account. It spends ₦300,000 on raw materials and ₦200,000 on labor. If the company has a 20% profit margin, what is the total revenue for the year?

A. ₦1,400,000

B. ₦1,600,000

C. ₦1,800,000

Correct D. ₦2,000,000

Correct Answer: D

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Question 13

A firm is considering two different modes of transportation for its goods: road and rail. The cost of transporting goods by road is ₦500 per kilometer, while the cost of transporting goods by rail is ₦300 per kilometer. If the firm needs to transport goods for 100 kilometers, what is the total cost of transportation by road and rail?

A. ₦50,000

B. ₦60,000

C. ₦70,000

Correct D. ₦80,000

Correct Answer: D

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Question 14

A company has a total of 100 employees, with 60% of them being male and 40% being female. If the company has a policy of promoting 10% of its employees, how many employees will be promoted?

A. 6

B. 8

Correct C. 10

D. 12

Correct Answer: C

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Question 15

A firm is considering two different types of insurance policies: life insurance and property insurance. The cost of life insurance is ₦500 per year, while the cost of property insurance is ₦300 per year. If the firm needs to insure its employees for 5 years, what is the total cost of life insurance and property insurance?

A. ₦2,500

B. ₦3,000

C. ₦3,500

Correct D. ₦4,000

Correct Answer: D

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Question 16

A firm specializes in the production of a single product, which is sold in both domestic and foreign markets. The firm's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. The firm's revenue function is given by R = 200Q. If the firm's labor and capital inputs are 100 and 400, respectively, what is the firm's profit-maximizing output?

A. 10

Correct B. 20

C. 30

D. 40

Correct Answer: B

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Question 17

A firm is considering two different production technologies to produce a single product. The first technology has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit produced. The second technology has a fixed cost of ₦200,000 and a variable cost of ₦30 per unit produced. If the firm produces 1,000 units of the product, what is the total cost of production for each technology?

Correct A. ₦100,000

B. ₦150,000

C. ₦200,000

D. ₦250,000

Correct Answer: A

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Question 18

A firm is considering two different transportation modes to transport a product from a warehouse to a customer. The first mode has a fixed cost of ₦10,000 and a variable cost of ₦20 per unit transported. The second mode has a fixed cost of ₦20,000 and a variable cost of ₦15 per unit transported. If the firm transports 500 units of the product, what is the total transportation cost for each mode?

Correct A. ₦20,000

B. ₦25,000

C. ₦30,000

D. ₦35,000

Correct Answer: A

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Question 19

A firm is considering two different storage facilities to store a product. The first facility has a fixed cost of ₦50,000 and a variable cost of ₦10 per unit stored. The second facility has a fixed cost of ₦100,000 and a variable cost of ₦5 per unit stored. If the firm stores 1,000 units of the product, what is the total storage cost for each facility?

Correct A. ₦60,000

B. ₦70,000

C. ₦80,000

D. ₦90,000

Correct Answer: A

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Question 20

A firm is considering two different payment terms to offer to its customers. The first term has a discount of 5% if the customer pays within 30 days, and a discount of 10% if the customer pays within 60 days. The second term has a discount of 10% if the customer pays within 30 days, and a discount of 15% if the customer pays within 60 days. If the customer pays within 60 days, what is the total discount offered by each term?

A. 5%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 21

Under the Consumer Protection Act, what is the primary responsibility of the Consumer Protection Council in Nigeria?

Correct A. To investigate consumer complaints and provide redress

B. To regulate consumer behavior and enforce compliance

C. To promote consumer education and awareness

D. To provide legal representation for consumers

Correct Answer: A

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Question 22

A firm specializes in producing only one product. What is the economic term for this type of specialization?

A. Monopolistic competition

B. Perfect competition

C. Monopoly

Correct D. Single-product specialization

Correct Answer: D

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Question 23

A company purchases an insurance policy to cover against losses due to fire. What type of insurance is this?

Correct A. Fire insurance

B. Liability insurance

C. Property insurance

D. Casualty insurance

Correct Answer: A

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Question 24

A bank offers a loan with an interest rate of 12% per annum compounded annually. If the principal amount is ₦10,000, what is the amount after 2 years?

Correct A. ₦12,736.04

B. ₦12,736.16

C. ₦12,736.28

D. ₦12,736.40

Correct Answer: A

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Question 25

A firm uses the following data to calculate its production costs: Fixed costs = ₦50,000, Variable costs = ₦20x, where x is the number of units produced. What is the total cost function?

Correct A. TC = 50,000 + 20x

B. TC = 50,000 - 20x

C. TC = 50,000 + 10x

D. TC = 50,000 - 10x

Correct Answer: A

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