POST UTME UNILAG 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader operates a business with an annual turnover of ₦5,000,000. If the sole trader's profit is 20% of the turnover, what is the sole trader's profit?
A. ₦1,000,000
B. ₦500,000
C. ₦750,000
D. ₦1,500,000
Question 2
A company's insurance policy has a deductible of ₦50,000. If the company's annual premium is ₦1,200,000, what is the excess of the premium over the deductible?
A. ₦1,150,000
B. ₦1,200,000
C. ₦1,250,000
D. ₦1,300,000
Question 3
A company's Memorandum and Articles of Association are its constitutional documents. Discuss the differences between the two documents and their roles in the company's governance.
A. The Memorandum outlines the company's objectives, while the Articles detail its internal management.
B. The Memorandum sets out the company's structure, while the Articles define its powers.
C. The Memorandum establishes the company's capital structure, while the Articles govern its dividend policy.
D. The Memorandum defines the company's business activities, while the Articles regulate its relationships with shareholders.
Question 4
A bank has a reserve requirement of 10% and a cash reserve of ₦1,500,000. What is the maximum amount of loans that the bank can extend?
A. ₦12,000,000
B. ₦13,500,000
C. ₦15,000,000
D. ₦16,500,000
Question 5
A company is considering the implementation of a just-in-time (JIT) inventory system. Which of the following is a key benefit of JIT?
A. Reduced inventory costs
B. Improved product quality
C. Increased production capacity
D. Enhanced supply chain visibility
Question 6
A bank offers a loan of ₦1,000,000 at an annual interest rate of 12%. How much interest will be paid after 2 years?
A. ₦120,000
B. ₦240,000
C. ₦360,000
D. ₦480,000
Question 7
A company's transportation system is designed to minimize delivery costs. Which of the following transportation modes is most effective in achieving this goal?
A. Air transportation
B. Rail transportation
C. Road transportation
D. Water transportation
Question 8
A company has a sole trader business structure. What is the primary advantage of this structure?
A. Limited liability for the owner
B. Easy to set up and maintain
C. Flexibility in decision-making
D. Ability to raise capital from investors
Question 9
A company has a production cost of ₦100 per unit and sells its product for ₦150 per unit. If the company produces 10,000 units, what is the total revenue?
A. ₦1000000
B. ₦1500000
C. ₦2000000
D. ₦2500000
Question 10
A company exports goods worth ₦1,000,000 to a foreign country. If the exchange rate is 1 USD = ₦500, what is the value of the exported goods in USD?
A. 2,000
B. 1,000
C. 500
D. 200
Question 11
A firm is considering exporting its products to the European market. Which of the following documents is required for export purposes?
A. Commercial invoice
B. Bill of lading
C. Certificate of origin
D. Export license
Question 12
A sole trader's business is registered under the sole trader's name. Which of the following is a characteristic of a sole trader's business?
A. Limited liability
B. Unlimited liability
C. Separate legal entity
D. Partnership
Question 13
A company has a sole trader business structure. What is the primary disadvantage of this structure?
A. Limited liability for the owner
B. Easy to set up and maintain
C. Flexibility in decision-making
D. Unlimited personal liability for the owner
Question 14
A sole trader has a business income of ₦1,200,000 and expenses of ₦800,000. What is the profit before tax?
A. ₦400,000
B. ₦600,000
C. ₦800,000
D. ₦1,200,000
Question 15
A firm's cost of goods sold is ₦1,500,000. If the firm's total revenue is ₦3,000,000, what is the gross profit margin?
A. 50%
B. 60%
C. 70%
D. 80%

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