Practice post utme unilag commerce 2022 Past Questions

Question 1

A commercial bank's primary function is to act as a financial intermediary between savers and borrowers. Which of the following best describes the role of a commercial bank in this context?

A. To provide loans to customers at a lower interest rate than the market rate

Correct B. To accept deposits from customers and invest them in various assets

C. To provide payment services to customers through various channels

D. To offer investment advice to customers

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 2

A company is considering the introduction of a new product line. The product has a high fixed cost of production, but the variable cost per unit is relatively low. Which of the following best describes the type of cost structure the company is likely to have?

Correct A. Fixed cost

B. Variable cost

C. Semi-variable cost

D. Sunk cost

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 3

A warehouse manager is responsible for maintaining a high level of inventory turnover while minimizing stockouts. Which of the following inventory control techniques is most likely to achieve this goal?

Correct A. Just-in-time (JIT) inventory system

B. Economic order quantity (EOQ) model

C. Safety stock model

D. Vendor-managed inventory (VMI) system

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 4

A company is considering the purchase of a new insurance policy to protect against potential losses. The policy has a premium of ₦10,000 per year and a deductible of ₦5,000. Which of the following best describes the type of insurance policy the company is likely to purchase?

Correct A. Excess insurance policy

B. Deductible insurance policy

C. Excess of loss insurance policy

D. Stop-loss insurance policy

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 5

A company is considering the introduction of a new transportation system to reduce costs and improve efficiency. The system involves the use of a fleet of vehicles that are equipped with GPS tracking devices. Which of the following best describes the type of transportation system the company is likely to introduce?

A. Just-in-time (JIT) delivery system

B. Vendor-managed inventory (VMI) system

Correct C. Transportation management system (TMS)

D. Supply chain management system (SCMS)

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 6

A firm specializes in producing a single product, which is a type of consumer good. The production process involves a series of complex steps, including material sourcing, manufacturing, and packaging. The firm's goal is to maximize profits while maintaining a high level of quality control. Which of the following production strategies would be most effective in achieving this goal?

A. Mass production

B. Flexible manufacturing

Correct C. Just-in-time production

D. Batch production

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 7

A company is considering launching a new product in a foreign market. The company has conducted market research and has determined that the product will be successful in the target market. However, the company is concerned about the potential risks associated with launching a new product in a foreign market. Which of the following risk management strategies would be most effective in mitigating these risks?

A. Market research

B. Product testing

C. Market segmentation

Correct D. Risk assessment and mitigation

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 8

A consumer is considering purchasing a product from a company that has a reputation for producing high-quality products. However, the consumer is also concerned about the environmental impact of the product. Which of the following marketing strategies would be most effective in addressing the consumer's concerns?

Correct A. Green marketing

B. Social marketing

C. Product placement

D. Public relations

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 9

A company is considering entering into a contract with a supplier. The company has determined that the supplier is reputable and has a good track record of delivering high-quality products on time. However, the company is concerned about the potential risks associated with the contract. Which of the following contract management strategies would be most effective in mitigating these risks?

A. Contract negotiation

Correct B. Contract review

C. Contract monitoring

D. Contract termination

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 10

A company is considering purchasing a new piece of equipment for its manufacturing process. The company has determined that the equipment will increase productivity and reduce costs. However, the company is concerned about the potential risks associated with the purchase. Which of the following risk management strategies would be most effective in mitigating these risks?

A. Cost-benefit analysis

Correct B. Risk assessment

C. Return on investment

D. Break-even analysis

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 11

A company's sole trader is considering expanding its operations to a foreign market. Which of the following is a key consideration for the sole trader when deciding whether to expand?

A. The potential for increased competition in the foreign market

Correct B. The need to adapt the company's products or services to meet the needs of the foreign market

C. The potential for increased profits in the foreign market

D. The need to obtain a license to operate in the foreign market

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 12

A bank's assets include a portfolio of stocks and bonds. What is the primary function of the bank's asset management department?

A. To manage the bank's liabilities

Correct B. To manage the bank's assets

C. To manage the bank's equity

D. To manage the bank's cash flows

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 13

A company's warehouse is experiencing stockouts due to inadequate inventory management. Which of the following is a key performance indicator (KPI) that the company should use to measure its inventory management effectiveness?

Correct A. Inventory turnover ratio

B. Days inventory outstanding

C. Inventory holding cost

D. Inventory turnover period

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 14

A foreign trade agreement between two countries involves the exchange of goods and services. What is the primary purpose of the agreement?

A. To promote economic growth and development

Correct B. To reduce trade barriers and increase trade volumes

C. To protect domestic industries from foreign competition

D. To increase government revenue through tariffs

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 15

A company's sole trader is considering purchasing a liability insurance policy to protect against potential losses. Which of the following is a key benefit of liability insurance?

A. To increase the company's assets

B. To reduce the company's liabilities

Correct C. To protect against potential losses

D. To increase the company's equity

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 16

A company is considering two marketing strategies: a high-cost, high-reward campaign or a low-cost, low-reward campaign. Which of the following is a key consideration in determining which strategy to choose?

A. The company's target market size and growth rate

Correct B. The company's current financial resources and budget

C. The company's competitive advantage and market position

D. The company's product life cycle and market maturity

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 17

A warehouse manager is responsible for maintaining a inventory level of 500 units. The current inventory level is 300 units, and the demand rate is 20 units per day. What is the minimum order quantity (MOQ) to meet the demand rate?

A. 1000

Correct B. 2000

C. 3000

D. 4000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 18

A company is considering outsourcing its production to a contract manufacturer. What is the primary advantage of outsourcing production?

A. Reduced labor costs and improved productivity

Correct B. Increased flexibility and responsiveness to changing market conditions

C. Improved quality and reduced defect rates

D. Enhanced brand image and customer loyalty

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 19

A company is considering a new product launch. What is the primary consideration in determining the product's price?

A. The company's cost of production and desired profit margin

Correct B. The target market's willingness to pay and perceived value

C. The company's competitive advantage and market position

D. The product's life cycle and market maturity

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 20

A company is considering a new business venture. What is the primary consideration in determining the venture's feasibility?

Correct A. The company's financial resources and budget

B. The target market's size and growth rate

C. The company's competitive advantage and market position

D. The product's life cycle and market maturity

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 21

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

A. The sole trader is not liable for any business debts.

B. The sole trader is not entitled to any business benefits.

C. The sole trader is not required to file tax returns.

Correct D. The sole trader is not protected by the Companies and Allied Matters Act (CAMA).

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 22

A company has a capital of ₦1,000,000, divided into 100,000 shares of ₦10 each. If the company issues 80,000 shares, what is the amount of share capital received?

Correct A. ₦800,000

B. ₦1,000,000

C. ₦1,200,000

D. ₦1,600,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 23

A bank has a reserve requirement of 10% on deposits. If the bank has a deposit of ₦10,000,000, how much must it keep in reserve?

Correct A. ₦1,000,000

B. ₦1,500,000

C. ₦2,000,000

D. ₦2,500,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 24

A warehouse has a storage capacity of 10,000 units. If the warehouse is currently storing 8,000 units, what is the percentage of storage capacity used?

Correct A. 80%

B. 85%

C. 90%

D. 95%

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 25

A company has a policy of paying its employees a bonus of 10% of their salary. If an employee earns ₦50,000 per month, what is the bonus amount?

A. ₦5,000

Correct B. ₦5,500

C. ₦6,000

D. ₦6,500

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

POST UTME UNILAG 2022 Commerce | Objective

Master the Exam!

Help others prepare! Share this practice hub: