Practice post utme unilorin commerce 2018 Past Questions

Question 1

A sole trader's business is considered a separate legal entity from its owner. What is the primary reason for this separation?

Correct A. To protect the owner's personal assets from business liabilities

B. To allow the business to operate independently of its owner

C. To facilitate the transfer of ownership to a new individual

D. To simplify tax compliance for the business

Correct Answer: A

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Question 2

A company's articles of association outline its management structure. What is the primary purpose of this document?

A. To define the company's business objectives

Correct B. To outline the company's management structure

C. To specify the company's capital structure

D. To detail the company's financial reporting requirements

Correct Answer: B

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Question 3

A freight forwarder is responsible for arranging the transportation of goods from one location to another. What is the primary benefit of using a freight forwarder?

A. To reduce the cost of transportation

B. To increase the speed of delivery

Correct C. To simplify the logistics of transportation

D. To improve the security of goods in transit

Correct Answer: C

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Question 4

A bank's primary function is to act as a financial intermediary between savers and borrowers. What is the primary benefit of using a bank?

A. To provide a safe and secure place to store money

B. To facilitate the transfer of funds between individuals

Correct C. To provide a source of credit for borrowers

D. To offer investment opportunities for savers

Correct Answer: C

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Question 5

A foreign trade agreement between two countries aims to reduce tariffs and other trade barriers. What is the primary benefit of such an agreement?

A. To increase the volume of trade between the two countries

Correct B. To reduce the cost of trade between the two countries

C. To improve the balance of trade between the two countries

D. To increase the competitiveness of businesses in both countries

Correct Answer: B

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Question 6

The Consumer Protection Act of 1999 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 7

In a perfectly competitive market, firms produce at the point where their marginal cost curve intersects their marginal revenue curve. What is the name of this point?

Correct A. Point of Profit Maximization

B. Point of Maximum Efficiency

C. Point of Minimum Cost

D. Point of Perfect Competition

Correct Answer: A

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Question 8

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?

A. 5%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 9

A firm's revenue function is given by R = 100Q - 2Q^2. If the firm's price and output are increased by 10% and 5% respectively, what is the percentage change in revenue?

A. 5%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 10

A firm's cost function is given by C = 50 + 10L + 5K. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in cost?

A. 5%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 11

A sole trader's business is registered under the Companies and Allied Matters Act 2020. Which of the following is a consequence of this registration?

Correct A. The sole trader is required to file annual returns with the Corporate Affairs Commission.

B. The sole trader is exempt from paying personal income tax.

C. The sole trader is required to maintain a separate business bank account.

D. The sole trader is not required to obtain a business license.

Correct Answer: A

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Question 12

A company is considering the introduction of a new product line. The marketing manager has identified three potential target markets: young adults, middle-aged adults, and seniors. Which of the following marketing strategies would be most appropriate for the young adult target market?

Correct A. Social media advertising

B. Print media advertising

C. Television advertising

D. Influencer marketing

Correct Answer: A

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Question 13

A business has a warehouse with a capacity of 10,000 units. The business receives an order for 5,000 units. The warehouse is currently 70% full. What is the probability that the business will be able to fulfill the order without running out of stock?

A. 0.7

Correct B. 0.8

C. 0.9

D. 1.0

Correct Answer: B

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Question 14

A business is considering exporting its products to a foreign market. Which of the following is a benefit of exporting?

A. Increased competition

B. Reduced market share

Correct C. Access to new markets and customers

D. Lower production costs

Correct Answer: C

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Question 15

A business has a warehouse with a capacity of 10,000 units. The business receives an order for 5,000 units. The warehouse is currently 70% full. What is the probability that the business will be able to fulfill the order without running out of stock?

A. 0.7

Correct B. 0.8

C. 0.9

D. 1.0

Correct Answer: B

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Question 16

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

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Question 17

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. 12

B. 16

Correct C. 20

D. 24

Correct Answer: C

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Question 18

A company's cost function is given by C(x) = 2x^2 + 5x + 10. If the company produces 20 units of output, what is its total cost?

A. 150

B. 200

Correct C. 250

D. 300

Correct Answer: C

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Question 19

A firm's revenue function is given by R(x) = 10x - 2x^2. If the firm produces 5 units of output, what is its revenue?

A. 20

Correct B. 25

C. 30

D. 35

Correct Answer: B

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Question 20

A company's profit function is given by \[ \pi(x) = R(x) - C(x) \]. If the company produces 10 units of output, what is its profit?

A. 50

B. 60

Correct C. 70

D. 80

Correct Answer: C

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Question 21

A company is considering two different insurance policies to cover its business operations. Policy A has a premium of ₦150,000 and a deductible of ₦50,000. Policy B has a premium of ₦120,000 and a deductible of ₦20,000. If the company expects to incur an average loss of ₦80,000 per year, which policy should it choose?

A. Policy A

Correct B. Policy B

C. Both policies are equally good

D. Neither policy is suitable

Correct Answer: B

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Question 22

A firm is considering launching a new product. The product's demand is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm wants to maximize its profit, what should be the optimal price?

A. ₦20

B. ₦30

Correct C. ₦40

D. ₦50

Correct Answer: C

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Question 23

A company is considering two different production processes to manufacture a product. Process A has a fixed cost of ₦200,000 and a variable cost of ₦50 per unit. Process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the company expects to produce 10,000 units, which process should it choose?

A. Process A

Correct B. Process B

C. Both processes are equally good

D. Neither process is suitable

Correct Answer: B

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Question 24

A bank is considering two different investment options. Option A has a return of 10% per annum and a risk level of 5. Option B has a return of 15% per annum and a risk level of 8. If the bank wants to maximize its return while minimizing its risk, which option should it choose?

A. Option A

Correct B. Option B

C. Both options are equally good

D. Neither option is suitable

Correct Answer: B

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Question 25

A firm is considering two different marketing strategies to promote its product. Strategy A involves a high level of advertising and a low level of sales promotion. Strategy B involves a low level of advertising and a high level of sales promotion. If the firm wants to maximize its sales, which strategy should it choose?

A. Strategy A

Correct B. Strategy B

C. Both strategies are equally good

D. Neither strategy is suitable

Correct Answer: B

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