Practice post utme unilorin commerce 2017 Past Questions

Question 1

A company'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. If the company wants to increase its output by 20% while keeping labor input constant at 100 units, what percentage increase in capital input is required?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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

Question 2

A firm is considering two different production processes for producing a certain product. Process A requires an initial investment of ₦1,000,000 and has a variable cost of ₦500 per unit. Process B requires an initial investment of ₦800,000 and has a variable cost of ₦600 per unit. If the firm expects to produce 10,000 units, which process should it choose?

Correct A. Process A

B. Process B

C. Both processes are equally profitable

D. Neither process is profitable

Correct Answer: A

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

Question 3

A company is considering expanding its product line to include a new product. The company's marketing research department has estimated that the demand for the new product will be given by the equation Q = 1000 - 2P, where Q is the quantity demanded and P is the price. If the company wants to maximize its profit, what price should it charge for the new product?

A. ₦200

Correct B. ₦300

C. ₦400

D. ₦500

Correct Answer: B

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

Question 4

A firm is considering two different advertising strategies for promoting its product. Strategy A involves a one-time expenditure of ₦1,000,000 on television advertising, while Strategy B involves a monthly expenditure of ₦100,000 on radio advertising for 12 months. If the firm expects to sell 10,000 units of the product, which strategy should it choose?

Correct A. Strategy A

B. Strategy B

C. Both strategies are equally effective

D. Neither strategy is effective

Correct Answer: A

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

Question 5

A company is considering outsourcing its production to a foreign country. The company'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. If the company wants to increase its output by 20% while keeping labor input constant at 100 units, what percentage increase in capital input is required?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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

Question 6

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

A. increase

Correct B. decrease

C. remain constant

D. move in the opposite direction

Correct Answer: B

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

Question 7

A company's financial statements are audited by an independent auditor to ensure that they are presented fairly and in accordance with accounting standards. What is the primary purpose of this audit?

A. To verify the accuracy of the company's financial statements

B. To ensure that the company is complying with tax laws

Correct C. To provide assurance to stakeholders that the company's financial statements are presented fairly

D. To identify areas for cost reduction

Correct Answer: C

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

Question 8

A sole trader is a type of business ownership where one person owns and operates the business. What are the advantages of being a sole trader?

A. Limited liability, easy to set up, and flexible management structure

B. Unlimited liability, difficult to set up, and rigid management structure

Correct C. Easy to manage, flexible ownership structure, and limited liability

D. Difficult to manage, rigid ownership structure, and unlimited liability

Correct Answer: C

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

Question 9

A company's financial statements are presented in a specific format to provide stakeholders with a clear understanding of the company's financial performance. What is the primary purpose of this format?

A. To provide a detailed breakdown of the company's expenses

Correct B. To present the company's financial performance in a clear and concise manner

C. To identify areas for cost reduction

D. To provide a comparison of the company's financial performance with industry averages

Correct Answer: B

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

Question 10

A company's financial statements are audited by an independent auditor to ensure that they are presented fairly and in accordance with accounting standards. What is the primary benefit of this audit?

A. To identify areas for cost reduction

Correct B. To provide assurance to stakeholders that the company's financial statements are presented fairly

C. To verify the accuracy of the company's financial statements

D. To ensure that the company is complying with tax laws

Correct Answer: B

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

Question 11

A consumer protection agency has been established to regulate the activities of businesses in a particular industry. Which of the following is a primary responsibility of this agency?

A. To ensure that businesses comply with all relevant laws and regulations

B. To provide training and education to consumers on how to make informed purchasing decisions

Correct C. To investigate and prosecute businesses that engage in unfair or deceptive practices

D. To provide financial assistance to consumers who have been victimized by businesses

Correct Answer: C

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

Question 12

A company has a policy of offering a 10% discount to customers who pay their bills within 30 days of receipt. However, the company also charges a late payment fee of ₦500 if the bill is not paid within 30 days. What is the effective interest rate on this loan?

Correct A. 5%

B. 10%

C. 15%

D. 20%

Correct Answer: A

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

Question 13

A marketing manager is considering two different advertising campaigns for a new product. Campaign A has a budget of ₦1,000,000 and is expected to reach 100,000 people, while Campaign B has a budget of ₦500,000 and is expected to reach 50,000 people. Which campaign is more cost-effective?

A. Campaign A

Correct B. Campaign B

C. Both campaigns are equally cost-effective

D. Neither campaign is cost-effective

Correct Answer: B

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

Question 14

A company is considering exporting its products to a foreign market. Which of the following is a key consideration in this decision?

A. The company's production costs

B. The company's marketing strategy

Correct C. The foreign market's demand for the product

D. The company's financial resources

Correct Answer: C

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

Question 15

A production manager is considering two different production processes for a new product. Process A has a higher initial investment but produces the product at a lower cost per unit, while Process B has a lower initial investment but produces the product at a higher cost per unit. Which process is more profitable?

Correct A. Process A

B. Process B

C. Both processes are equally profitable

D. Neither process is profitable

Correct Answer: A

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

Question 16

A company's marketing strategy involves a 30% discount on all products for the first week of a new product launch. If the original price of the product is ₦15,000, what is the total revenue generated from the sale of 100 units of the product during the first week?

A. ₦1,350,000

B. ₦1,500,000

C. ₦1,800,000

Correct D. ₦2,100,000

Correct Answer: D

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

Question 17

A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm increases its labor input from 4 units to 9 units, by how much will its capital input need to increase to maintain the same level of output?

A. 25%

B. 50%

Correct C. 75%

D. 100%

Correct Answer: C

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

Question 18

A bank's investment portfolio consists of 60% stocks, 20% bonds, and 20% real estate. If the bank's investment in stocks increases by 15%, and the investment in bonds decreases by 10%, what is the new percentage allocation to real estate?

A. 20%

Correct B. 22%

C. 25%

D. 28%

Correct Answer: B

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

Question 19

A company's insurance policy has a deductible of ₦5,000 and a coinsurance clause of 80%. If the company suffers a loss of ₦100,000, what is the amount that the insurance company will pay?

A. ₦60,000

B. ₦70,000

Correct C. ₦80,000

D. ₦90,000

Correct Answer: C

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

Question 20

A firm's supply function is given by Q = 2P^2 + 10P + 20, where Q is the quantity supplied and P is the price. If the price increases by 10%, by how much will the quantity supplied increase?

A. 5%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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

Question 21

In a consumer protection case, a court may award damages to a consumer for a breach of contract. However, the court may also consider the consumer's contributory negligence. Which of the following is a correct statement regarding contributory negligence?

A. Contributory negligence is a defense that can be raised by the defendant in a consumer protection case.

B. Contributory negligence is a type of damages that can be awarded to the consumer in a consumer protection case.

Correct C. Contributory negligence is a factor that the court may consider when determining the amount of damages to award to the consumer.

D. Contributory negligence is a type of breach of contract that can be committed by the consumer.

Correct Answer: C

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

Question 22

A company exports goods to a foreign country and is required to comply with the foreign country's customs regulations. Which of the following is a correct statement regarding customs regulations?

A. Customs regulations are only applicable to imports, not exports.

B. Customs regulations are only applicable to goods that are valued at over ₦100,000.

Correct C. Customs regulations are applicable to all goods that are exported or imported, and must be complied with by the company.

D. Customs regulations are only applicable to goods that are exported to countries that are members of the World Trade Organization.

Correct Answer: C

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

Question 23

A consumer purchases a product from a company and discovers that the product is defective. The consumer sues the company for breach of contract. Which of the following is a correct statement regarding the consumer's claim?

A. The consumer's claim is barred by the statute of limitations.

B. The consumer's claim is based on a breach of warranty, not contract.

Correct C. The consumer's claim is based on a breach of contract, and the consumer is entitled to damages for the defective product.

D. The consumer's claim is based on a breach of contract, but the consumer must prove that the company was negligent in manufacturing the product.

Correct Answer: C

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

Question 24

A company engages in unfair trade practices and is sued by the Federal Trade Commission. Which of the following is a correct statement regarding the company's liability?

A. The company is liable for damages to consumers who were affected by the unfair trade practices.

B. The company is liable for a fine of up to ₦10 million.

Correct C. The company is liable for a fine of up to ₦100 million and must also cease and desist from engaging in unfair trade practices.

D. The company is not liable for any damages or fines, as the Federal Trade Commission does not have jurisdiction over the company.

Correct Answer: C

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

Question 25

A consumer purchases a product from a company and discovers that the product is not as advertised. The consumer sues the company for misrepresentation. Which of the following is a correct statement regarding the consumer's claim?

A. The consumer's claim is based on a breach of warranty, not misrepresentation.

Correct B. The consumer's claim is based on a breach of contract, and the consumer is entitled to damages for the misrepresentation.

C. The consumer's claim is based on a breach of contract, but the consumer must prove that the company was negligent in advertising the product.

D. The consumer's claim is barred by the statute of limitations.

Correct Answer: B

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

POST UTME UNILORIN 2017 Commerce | Objective

Master the Exam!

Help others prepare! Share this practice hub: