POST UTME UNILORIN 2019 Commerce | Objective

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Question 1
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). Which of the following is a consequence of this?
A. The business cannot be sued in court.
Correct B. The business cannot be taxed by the government.
C. The business cannot be registered with the National Industrial Court.
D. The business cannot be registered with the Nigerian Stock Exchange.

Correct Answer: B

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Question 2
A company has a turnover of ₦1,500,000 and a profit of ₦250,000. What is the company's profit margin?
Correct A. 16.67%
B. 20%
C. 25%
D. 30%

Correct Answer: A

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Question 3
A consumer purchases a product for ₦5,000 and returns it after one week. The store owner refuses to refund the money. What law protects the consumer in this situation?
Correct A. The Consumer Protection Act
B. The Sale of Goods Act
C. The Hire Purchase Act
D. The Credit Act

Correct Answer: A

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Question 4
A company uses a just-in-time (JIT) inventory system. What is the primary advantage of this system?
A. Reduced inventory costs
B. Improved product quality
C. Increased customer satisfaction
Correct D. Reduced lead times

Correct Answer: D

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Question 5
A company uses a warehouse management system (WMS) to manage its inventory. What is the primary benefit of this system?
A. Improved inventory accuracy
B. Increased storage capacity
C. Reduced labor costs
Correct D. Improved supply chain visibility

Correct Answer: D

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Question 6
The concept of 'Warehousing and Stock Control' is closely related to which of the following business functions?
A. Purchasing
B. Marketing
Correct C. Operations
D. Finance

Correct Answer: C

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Question 7
A company's 'Business Units' can be classified into which of the following categories?
Correct A. Sole Trade, Companies
B. Partnership, Limited Liability Company
C. Sole Trade, Partnership
D. Limited Liability Company, Cooperative Society

Correct Answer: A

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Question 8
The 'Consumer Protection Act' of 1999 provides which of the following rights to consumers?
Correct A. Right to choose, Right to safety, Right to be informed
B. Right to choose, Right to be informed, Right to compensation
C. Right to safety, Right to be informed, Right to compensation
D. Right to choose, Right to safety, Right to compensation

Correct Answer: A

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Question 9
A company's 'Banking and Financial Institutions' can be classified into which of the following categories?
Correct A. Commercial Banks, Central Bank, Development Banks
B. Merchant Banks, Investment Banks, Commercial Banks
C. Central Bank, Development Banks, Merchant Banks
D. Commercial Banks, Development Banks, Investment Banks

Correct Answer: A

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Question 10
A company's 'Business Units' can be classified into which of the following categories?
Correct A. Sole Trade, Companies
B. Partnership, Limited Liability Company
C. Sole Trade, Partnership
D. Limited Liability Company, Cooperative Society

Correct Answer: A

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Question 11
A firm specializes in producing a particular product due to its comparative advantage. What is the opportunity cost of producing this product?
Correct A. The opportunity cost is the next best alternative use of resources.
B. The opportunity cost is the cost of producing the product in another country.
C. The opportunity cost is the cost of producing the product in another industry.
D. The opportunity cost is the cost of producing the product in another firm.

Correct Answer: A

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Question 12
A company uses the just-in-time inventory system to manage its inventory. What is the primary advantage of this system?
A. Reduced inventory costs
B. Improved customer service
Correct C. Increased efficiency
D. Better forecasting

Correct Answer: C

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Question 13
A consumer protection agency is responsible for enforcing consumer rights. What is the primary responsibility of this agency?
A. To regulate business practices
B. To provide consumer education
Correct C. To investigate consumer complaints
D. To prosecute offenders

Correct Answer: C

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Question 14
A firm uses the production function to determine its optimal production level. What is the production function?
Correct A. Q = f(L, K)
B. Q = L + K
C. Q = L - K
D. Q = L x K

Correct Answer: A

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Question 15
A company uses the break-even analysis to determine its optimal production level. What is the break-even point?
Correct A. The point at which total revenue equals total fixed costs
B. The point at which total revenue equals total variable costs
C. The point at which total revenue equals total costs
D. The point at which total revenue equals total sales

Correct Answer: A

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Question 16
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the units of labor, and K is the units of capital. If the company increases labor by 20% and capital by 15%, what is the new production level?
A. 120 units
B. 140 units
Correct C. 160 units
D. 180 units

Correct Answer: C

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Question 17
A firm's revenue function is given by R(x) = 2x^2 + 10x, where x is the number of units sold. If the firm sells 10 units, what is the total revenue?
A. 50
Correct B. 60
C. 70
D. 80

Correct Answer: B

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Question 18
A bank's interest rate is 12% per annum. If a customer deposits ₦10,000 for 2 years, what is the total interest earned?
A. ₦2,400
Correct B. ₦2,500
C. ₦2,600
D. ₦2,700

Correct Answer: B

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Question 19
A company's cost function is given by C(x) = 2x^2 + 5x, where x is the number of units produced. If the company produces 5 units, what is the total cost?
A. 25
Correct B. 30
C. 35
D. 40

Correct Answer: B

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Question 20
A firm's profit function is given by P(x) = R(x) - C(x), where R(x) is the revenue function and C(x) is the cost function. If the firm sells 10 units and produces 5 units, what is the total profit?
A. 15
B. 20
Correct C. 25
D. 30

Correct Answer: C

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Question 21
The Consumer Protection Act of 1999 provides for the establishment of the National Consumer Protection Agency. Which of the following is a primary function of the Agency?
Correct A. To investigate consumer complaints and take enforcement action against erring businesses
B. To provide education and awareness programs for consumers on their rights and responsibilities
C. To establish and enforce standards for the quality of goods and services
D. To provide mediation and arbitration services for consumer disputes

Correct Answer: A

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Question 22
A firm specializes in producing a particular good because it has a comparative advantage in producing that good. What is the opportunity cost of producing this good?
Correct A. The opportunity cost is the value of the next best alternative good that could have been produced
B. The opportunity cost is the value of the next best alternative good that could have been produced, but not the actual good
C. The opportunity cost is the value of the next best alternative good that could have been produced, but not the actual good, and also the value of the next best alternative good that could have been produced
D. The opportunity cost is the value of the next best alternative good that could have been produced, but not the actual good, and also the value of the next best alternative good that could have been produced, and also the value of the next best alternative good that could have been produced

Correct Answer: A

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Question 23
A bank's primary function is to act as a financial intermediary between savers and borrowers. What is the main benefit of this function?
A. The bank provides a safe and secure place for savers to deposit their money
B. The bank provides a safe and secure place for borrowers to obtain loans
Correct C. The bank provides a safe and secure place for both savers and borrowers to conduct their financial transactions
D. The bank provides a safe and secure place for both savers and borrowers to conduct their financial transactions, and also provides a safe and secure place for both savers and borrowers to conduct their financial transactions

Correct Answer: C

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Question 24
An insurance company offers a policy that covers the risk of damage to a building due to natural disasters. What type of insurance is this?
A. Life insurance
B. Health insurance
Correct C. Property insurance
D. Liability insurance

Correct Answer: C

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Question 25
A firm uses a combination of transportation modes to deliver goods to its customers. What is the main advantage of this approach?
A. The firm can deliver goods quickly and efficiently
B. The firm can deliver goods at a lower cost
Correct C. The firm can deliver goods to a wider range of customers
D. The firm can deliver goods in a more environmentally friendly way

Correct Answer: C

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