POST UTME UNILAG 2023 Commerce | Objective

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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 prices of goods and services

Correct Answer: A

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Question 2
A company has a sole trader business structure. What is the primary advantage of this structure?
A. Limited liability for the owner
Correct B. Easy to set up and maintain
C. Flexibility in decision-making
D. Ability to raise capital from investors

Correct Answer: B

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Question 3
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
Correct B. ₦240,000
C. ₦360,000
D. ₦480,000

Correct Answer: B

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Question 4
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
Correct D. Unlimited personal liability for the owner

Correct Answer: D

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Question 5
A bank offers a loan of ₦500,000 at an annual interest rate of 10%. How much interest will be paid after 3 years?
A. ₦60,000
B. ₦90,000
Correct C. ₦120,000
D. ₦150,000

Correct Answer: C

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Question 6
The concept of specialization in production is closely related to the idea of division of labor. Explain how the division of labor contributes to the efficiency of production.
Correct A. By reducing the time spent on each task, workers can focus on a single task and become more skilled at it.
B. By increasing the number of workers, the total output of the firm can be increased.
C. By reducing the number of tasks, workers can work more efficiently and reduce waste.
D. By increasing the complexity of tasks, workers can develop new skills and become more versatile.

Correct Answer: A

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Question 7
A company is considering two different marketing strategies: a push strategy and a pull strategy. Describe the key differences between these two strategies and explain which one is more effective in certain situations.
Correct A. A push strategy involves promoting products to intermediaries, while a pull strategy involves promoting products directly to consumers.
B. A push strategy is more effective in situations where the product is complex and requires a lot of explanation, while a pull strategy is more effective in situations where the product is simple and easy to understand.
C. A push strategy involves creating a sense of urgency among consumers, while a pull strategy involves creating a sense of excitement and anticipation.
D. A push strategy is more effective in situations where the product is expensive, while a pull strategy is more effective in situations where the product is affordable.

Correct Answer: A

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Question 8
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 5,000 units and immediately ships out 3,000 units. What is the new inventory level?
Correct A. 7000
B. 8000
C. 9000
D. 10000

Correct Answer: A

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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
Correct B. ₦1500000
C. ₦2000000
D. ₦2500000

Correct Answer: B

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Question 10
A company has a 10% discount on its products for customers who pay within 30 days. If a customer pays ₦10,000 within 30 days, how much will they pay?
Correct A. ₦9000
B. ₦9500
C. ₦10000
D. ₦10500

Correct Answer: A

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Question 11
A company is considering the implementation of a just-in-time (JIT) inventory system. Which of the following is a key benefit of JIT?
Correct A. Reduced inventory costs
B. Improved product quality
C. Increased production capacity
D. Enhanced supply chain visibility

Correct Answer: A

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Question 12
A sole trader has a business income of ₦1,200,000 and expenses of ₦800,000. What is the profit before tax?
Correct A. ₦400,000
B. ₦600,000
C. ₦800,000
D. ₦1,200,000

Correct Answer: A

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Question 13
A company is considering the implementation of a production planning system. Which of the following is a key objective of production planning?
A. To minimize production costs
B. To maximize production capacity
Correct C. To ensure timely delivery of products
D. To reduce product quality

Correct Answer: C

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Question 14
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
Correct B. ₦13,500,000
C. ₦15,000,000
D. ₦16,500,000

Correct Answer: B

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Question 15
A company has a policy of paying dividends of 10% on its common stock. If the company has 1,000,000 shares outstanding and a net income of ₦10,000,000, what is the amount of dividends paid?
A. ₦1,000,000
Correct B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: B

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Question 16
A company's warehousing and stock control system is designed to minimize inventory costs. Which of the following inventory control methods is most likely to be used?
Correct A. Just-In-Time (JIT) inventory control
B. Economic Order Quantity (EOQ) inventory control
C. FIFO (First-In-First-Out) inventory control
D. LIFO (Last-In-First-Out) inventory control

Correct Answer: A

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Question 17
A consumer purchases a product with a price tag of ₦500. If the product is subject to a 10% sales tax, what is the total amount the consumer must pay?
Correct A. ₦550
B. ₦500
C. ₦450
D. ₦400

Correct Answer: A

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Question 18
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?
Correct A. 2,000
B. 1,000
C. 500
D. 200

Correct Answer: A

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Question 19
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?
Correct A. ₦1,000,000
B. ₦500,000
C. ₦750,000
D. ₦1,500,000

Correct Answer: A

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Question 20
A company's transport costs are ₦200,000 per month. If the company's annual turnover is ₦50,000,000, what is the company's transport costs as a percentage of the annual turnover?
A. 0.4%
Correct B. 0.8%
C. 1.2%
D. 1.6%

Correct Answer: B

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Question 21
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?
A. The Act provides for the establishment of a Consumer Protection Council.
Correct B. The Act provides for the protection of consumers from unfair trade practices.
C. The Act provides for the establishment of a Consumer Protection Agency.
D. The Act provides for the protection of consumers from false advertising.

Correct Answer: B

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Question 22
A company is considering launching a new product in the Nigerian market. Which of the following marketing strategies would be most effective in reaching the target audience?
Correct A. Social media marketing
B. Television advertising
C. Print media advertising
D. Influencer marketing

Correct Answer: A

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Question 23
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
Correct C. Certificate of origin
D. Export license

Correct Answer: C

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Question 24
A company is considering implementing a just-in-time inventory system. Which of the following benefits would be most relevant to the company?
Correct A. Reduced inventory costs
B. Improved customer service
C. Increased efficiency
D. Reduced waste

Correct Answer: A

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Question 25
A firm is considering implementing a total quality management (TQM) system. Which of the following principles is a key component of TQM?
A. Customer focus
B. Employee involvement
Correct C. Continuous improvement
D. Supplier partnership

Correct Answer: C

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