Practice post utme unilag commerce 2018 Past Questions

Question 1

The Consumer Protection Act of 1999 in Nigeria provides for the protection of consumers from unfair trade practices. Which of the following is a key provision of the Act?

Correct A. Prohibition of false or misleading advertisements

B. Establishment of the Consumer Protection Council

C. Compensation for consumers who suffer loss or injury due to unfair trade practices

D. Regulation of consumer credit

Correct Answer: A

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Question 2

A company has a warehouse with a capacity to store 10,000 units of goods. The warehouse is currently 70% full. If the company receives an order for 5,000 units, what is the maximum number of units that can be stored in the warehouse after fulfilling the order?

A. 5000

Correct B. 7000

C. 8000

D. 9000

Correct Answer: B

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Question 3

A company has a policy of paying its employees a bonus of 10% of their salary after 5 years of service. If an employee is currently earning ₦100,000 per month, what is the total bonus the employee will receive after 5 years?

A. ₦600,000

B. ₦700,000

Correct C. ₦800,000

D. ₦900,000

Correct Answer: C

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Question 4

A company is considering importing goods from a foreign country. The company has estimated the cost of importing the goods to be 10,000. If the exchange rate is 1 USD = ₦400, what is the total cost of importing the goods in Nigerian Naira?

A. ₦4,000,000

B. ₦4,500,000

Correct C. ₦5,000,000

D. ₦5,500,000

Correct Answer: C

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Question 5

A company has a warehouse with a capacity to store 10,000 units of goods. The warehouse is currently 70% full. If the company receives an order for 5,000 units, what is the percentage of the warehouse that will be occupied after fulfilling the order?

A. 50

B. 60

Correct C. 70

D. 80

Correct Answer: C

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Question 6

A sole trader's business is considered a separate legal entity from its owner. Discuss.

A. True

Correct B. False

C. Depends on the jurisdiction

D. Not applicable

Correct Answer: B

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Question 7

A company's memorandum of association is a document that outlines the company's objectives and powers. Discuss.

Correct A. True

B. False

C. Partially true

D. Not applicable

Correct Answer: A

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Question 8

A warehouse's inventory management system uses the first-in-first-out (FIFO) method to track stock levels. Discuss the advantages and disadvantages of this method.

Correct A. Advantages: reduces stockouts, minimizes waste; Disadvantages: may lead to overstocking, increases labor costs

B. Advantages: reduces labor costs, minimizes waste; Disadvantages: may lead to stockouts, increases inventory costs

C. Advantages: reduces inventory costs, minimizes stockouts; Disadvantages: may lead to overstocking, increases labor costs

D. Advantages: reduces labor costs, minimizes waste; Disadvantages: may lead to stockouts, increases inventory costs

Correct Answer: A

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Question 9

A bank's cash management system uses the float method to manage its cash flow. Discuss the advantages and disadvantages of this method.

Correct A. Advantages: reduces cash handling costs, minimizes the risk of theft; Disadvantages: may lead to over- or under-estimation of cash flow

B. Advantages: reduces the risk of theft, minimizes cash handling costs; Disadvantages: may lead to over- or under-estimation of cash flow

C. Advantages: reduces cash handling costs, minimizes the risk of theft; Disadvantages: may lead to over- or under-estimation of cash flow

D. Advantages: reduces the risk of theft, minimizes cash handling costs; Disadvantages: may lead to over- or under-estimation of cash flow

Correct Answer: A

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Question 10

A consumer protection law requires businesses to provide clear and accurate information about their products. Discuss the importance of this law.

Correct A. It promotes transparency and trust between businesses and consumers

B. It reduces the risk of consumer deception and fraud

C. It increases competition among businesses and promotes innovation

D. It reduces the risk of consumer injury and harm

Correct Answer: A

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Question 11

In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will

A. increase

B. decrease

C. remain constant

Correct D. move in the opposite direction of the price change

Correct Answer: D

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Question 12

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?

A. 24

B. 36

Correct C. 48

D. 64

Correct Answer: C

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Question 13

A company's revenue function is given by R(x) = 100x - 2x^2. If the company's current price and quantity sold are 10 and 5, respectively, what is the company's current revenue?

A. 140

Correct B. 180

C. 220

D. 260

Correct Answer: B

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Question 14

A firm's cost function is given by C(L,K) = 2L + 3K. If the firm's current labor and capital inputs are L = 4 and K = 6, respectively, what is the firm's current cost?

A. 16

B. 20

Correct C. 24

D. 28

Correct Answer: C

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Question 15

A company's profit function is given by P(x) = R(x) - C(x). If the company's current revenue and cost functions are R(x) = 100x - 2x^2 and C(x) = 2x + 3x^2, respectively, what is the company's current profit?

A. 20

B. 40

Correct C. 60

D. 80

Correct Answer: C

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Question 16

The concept of specialization in production is closely related to the idea of comparative advantage. Explain how a country can benefit from specializing in the production of a particular good, even if it is not the most efficient producer of that good.

A. By producing a good that is in high demand and has a high price elasticity of demand.

B. By producing a good that is in low demand and has a low price elasticity of demand.

Correct C. By producing a good that is in high demand and has a low price elasticity of demand.

D. By producing a good that is in low demand and has a high price elasticity of demand.

Correct Answer: C

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Question 17

A company is considering investing in a new project that has a high potential return but also involves a high level of risk. What is the main advantage of using the net present value (NPV) method to evaluate the project?

Correct A. It takes into account the time value of money.

B. It ignores the time value of money.

C. It is a simple and easy-to-use method.

D. It is a complex and difficult-to-use method.

Correct Answer: A

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Question 18

A firm is considering two different investment projects, A and B. Project A has a higher initial cost but a higher expected return, while project B has a lower initial cost but a lower expected return. What is the main disadvantage of project B?

A. It has a lower expected return.

Correct B. It has a higher initial cost.

C. It has a higher risk.

D. It has a lower risk.

Correct Answer: B

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Question 19

A company is considering investing in a new project that has a high level of uncertainty. What is the main advantage of using the decision tree method to evaluate the project?

Correct A. It takes into account the uncertainty of the project.

B. It ignores the uncertainty of the project.

C. It is a simple and easy-to-use method.

D. It is a complex and difficult-to-use method.

Correct Answer: A

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Question 20

A firm is considering two different investment projects, A and B. Project A has a higher initial cost but a higher expected return, while project B has a lower initial cost but a lower expected return. What is the main advantage of project A?

Correct A. It has a higher expected return.

B. It has a lower initial cost.

C. It has a higher risk.

D. It has a lower risk.

Correct Answer: A

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Question 21

A company's marketing strategy involves a combination of advertising, sales promotions, and public relations. Which of the following is a key objective of this strategy?

Correct A. To increase brand awareness

B. To generate leads

C. To build customer loyalty

D. To reduce costs

Correct Answer: A

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Question 22

A sole trader is considering expanding their business by taking on a partner. What are the main advantages of this decision?

Correct A. Increased capital, shared risk, and access to new skills

B. Reduced workload, improved decision-making, and enhanced reputation

C. Greater control, increased profits, and reduced liability

D. Improved cash flow, enhanced creditworthiness, and increased competitiveness

Correct Answer: A

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Question 23

A company's insurance policy covers losses due to fire, theft, and natural disasters. What type of insurance policy is this?

A. Fire insurance

B. Theft insurance

Correct C. All-risk insurance

D. Comprehensive insurance

Correct Answer: C

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Question 24

A consumer is considering purchasing a product online. What is the main advantage of this option?

Correct A. Convenience, flexibility, and wider selection

B. Lower prices, improved quality, and enhanced customer service

C. Increased security, reduced risk, and improved returns policy

D. Enhanced brand reputation, improved customer loyalty, and increased sales

Correct Answer: A

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Question 25

A company's marketing strategy involves a combination of advertising, sales promotions, and public relations. Which of the following is a key objective of this strategy?

Correct A. To increase brand awareness

B. To generate leads

C. To build customer loyalty

D. To reduce costs

Correct Answer: A

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POST UTME UNILAG 2018 Commerce | Objective

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