POST UTME UNILORIN 2021 Commerce | Objective

Are you preparing for POST UTME UNILORIN exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2021 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A firm specializes in producing a particular good due to economies of scale. This is an example of which type of production?
A. Perfect Competition
B. Monopoly
C. Monopolistic Competition
Correct D. Economies of Scale

Correct Answer: D

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Question 2
A country's trade balance is calculated by subtracting its imports from its exports. What is the term for this balance?
A. Trade Deficit
Correct B. Trade Surplus
C. Balance of Payments
D. Current Account

Correct Answer: B

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Question 3
A firm uses the following transportation costs: 10 per unit for the first 100 units, 5 per unit for the next 200 units, and 2 per unit for the remaining units. What is the total transportation cost for 500 units?
Correct A. ₦1250
B. ₦1500
C. ₦1750
D. ₦2000

Correct Answer: A

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Question 4
A firm has the following inventory levels: 100 units in stock, 50 units on order, and 200 units in transit. What is the total inventory level?
A. 350
Correct B. 400
C. 450
D. 500

Correct Answer: B

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Question 5
A firm uses the following advertising media: television, radio, and print. What is the term for the process of selecting the most effective advertising medium?
Correct A. Media Planning
B. Media Buying
C. Media Research
D. Media Evaluation

Correct Answer: A

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Question 6
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). What is the legal implication of this?
A. The business is not liable for any debts incurred.
Correct B. The business is not entitled to limited liability.
C. The business is not required to file annual returns.
D. The business is not eligible for tax relief.

Correct Answer: B

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Question 7
A company has a turnover of ₦1,000,000 and a profit of ₦200,000. What is its profit margin?
A. 20%
Correct B. 25%
C. 30%
D. 35%

Correct Answer: B

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Question 8
A consumer purchases a product for ₦10,000 and returns it after 2 months, claiming it is defective. The product's warranty period is 6 months. What is the consumer's entitlement?
A. A full refund of ₦10,000.
B. A partial refund of ₦5,000.
Correct C. No refund, as the product is out of warranty.
D. A replacement product.

Correct Answer: C

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Question 9
A bank offers a loan of ₦500,000 at an interest rate of 12% per annum. What is the total amount payable after 2 years?
A. ₦700,000
Correct B. ₦720,000
C. ₦750,000
D. ₦800,000

Correct Answer: B

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Question 10
A company's financial statements show a net profit of ₦300,000 and a dividend payout ratio of 40%. What is the amount of dividend paid to shareholders?
A. ₦120,000
Correct B. ₦150,000
C. ₦180,000
D. ₦200,000

Correct Answer: B

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Question 11
Under the Consumer Protection Act, what is the primary responsibility of the Consumer Protection Council?
A. To investigate consumer complaints
B. To regulate consumer behavior
C. To promote consumer education
Correct D. To enforce consumer protection laws

Correct Answer: D

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Question 12
A company is considering exporting its products to a foreign market. What type of risk is the company most likely to face?
Correct A. Political risk
B. Economic risk
C. Financial risk
D. Operational risk

Correct Answer: A

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Question 13
A bank is considering issuing a new type of loan product. What type of financial instrument is the bank most likely to issue?
A. Mortgage
B. Credit card
Correct C. Line of credit
D. Term deposit

Correct Answer: C

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Question 14
A company is considering investing in a new project. What type of analysis should the company conduct to determine the project's viability?
A. Break-even analysis
B. Cash flow analysis
C. Return on investment analysis
Correct D. Sensitivity analysis

Correct Answer: D

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Question 15
A company is considering outsourcing its logistics operations. What type of risk is the company most likely to face?
Correct A. Operational risk
B. Financial risk
C. Strategic risk
D. Reputational risk

Correct Answer: A

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Question 16
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. What is the primary advantage of registering under CAMA?
A. Limited liability
Correct B. Easy registration process
C. Flexibility in management
D. Tax benefits

Correct Answer: B

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Question 17
A company's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. What is the primary benefit of a USP?
A. Increased market share
B. Improved brand recognition
Correct C. Enhanced customer loyalty
D. Reduced production costs

Correct Answer: C

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Question 18
A consumer protection law requires businesses to provide clear and accurate information about their products. What is the primary purpose of this requirement?
A. To prevent false advertising
B. To promote fair competition
Correct C. To protect consumers from misleading information
D. To reduce regulatory compliance costs

Correct Answer: C

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Question 19
A company's introduction to commerce involves understanding the principles of supply and demand. What is the primary factor that determines the equilibrium price in a market?
A. Supply
Correct B. Demand
C. Government intervention
D. External factors

Correct Answer: B

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Question 20
A business's transport and communication strategy involves using digital platforms to reach customers. What is the primary advantage of using digital platforms?
A. Increased brand awareness
B. Improved customer engagement
Correct C. Enhanced customer experience
D. Reduced marketing costs

Correct Answer: C

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Question 21
A company's risk management strategy involves diversification of its investments. If the company has a portfolio of stocks with a mean return of 8% and a standard deviation of 12%, what is the probability that the portfolio's return will be less than 2%?
A. 0.5
Correct B. 0.25
C. 0.75
D. 0.33

Correct Answer: B

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Question 22
A sole trader's business is affected by the following factors: market demand, competition, and government regulations. Which of the following is NOT a factor that affects the business?
A. Market demand
B. Competition
C. Government regulations
Correct D. Weather conditions

Correct Answer: D

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Question 23
A bank's balance sheet shows the following assets and liabilities: Assets = ₦100m, Liabilities = ₦80m. What is the bank's equity?
Correct A. ₦20m
B. ₦30m
C. ₦40m
D. ₦50m

Correct Answer: A

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Question 24
A company's foreign trade involves exporting goods to a foreign country. Which of the following is a benefit of foreign trade?
A. Increased competition
B. Reduced market share
Correct C. Increased market share
D. Reduced profit margins

Correct Answer: C

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Question 25
A risk management strategy involves diversification of investments. If a portfolio has a mean return of 8% and a standard deviation of 12%, what is the probability that the portfolio's return will be greater than 15%?
A. 0.25
B. 0.5
C. 0.75
Correct D. 0.33

Correct Answer: D

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