POST UTME UNIOSUN 2023 Commerce | Objective

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Question 1
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost compared to other countries. Which of the following is a correct example of comparative advantage?
A. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
B. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 150 units of cloth.
Correct C. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 50 units of cloth.
D. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 150 units of wheat and 50 units of cloth.

Correct Answer: C

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Question 2
A company is considering two different warehouses to store its products. Warehouse A has a capacity of 1000 units and a rental cost of ₦500 per unit per month. Warehouse B has a capacity of 2000 units and a rental cost of ₦300 per unit per month. If the company needs to store 1500 units of products, which warehouse should it choose?
A. Warehouse A
Correct B. Warehouse B
C. Both warehouses are equally suitable
D. Neither warehouse is suitable

Correct Answer: B

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Question 3
A sole trader has a business income of ₦1,000,000 and a business expense of ₦500,000. What is the sole trader's profit?
Correct A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000

Correct Answer: A

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Question 4
A company is considering the following business units: sole trade, partnership, and company. Which of the following is a characteristic of a company?
Correct A. Limited liability
B. Unlimited liability
C. Partnership
D. Sole trade

Correct Answer: A

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Question 5
A consumer protection agency has received a complaint from a customer who was sold a defective product. The product was sold for ₦10,000, but the customer is requesting a refund of ₦15,000. What is the agency's likely response?
A. The agency will order the seller to refund the customer ₦15,000
B. The agency will order the seller to refund the customer ₦10,000
Correct C. The agency will investigate the matter further
D. The agency will dismiss the complaint

Correct Answer: C

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Question 6
A bank's cash reserve ratio is 20%. If the bank has a total deposit of ₦1,000,000, how much cash must it reserve?
Correct A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦400,000

Correct Answer: A

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Question 7
A company has two departments: A and B. Department A has 5 employees, and department B has 7 employees. If the company has a total of 12 employees, what is the probability that an employee chosen at random is from department A?
Correct A. 1/2
B. 1/3
C. 2/5
D. 3/7

Correct Answer: A

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Question 8
A sole trader has a business income of ₦500,000 and expenses of ₦300,000. What is the sole trader's profit?
Correct A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦400,000

Correct Answer: A

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Question 9
A company has a warehouse with a capacity of 10,000 units. If the company receives a shipment of 5,000 units, what is the percentage of the warehouse's capacity that is currently occupied?
Correct A. 25%
B. 30%
C. 40%
D. 50%

Correct Answer: A

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Question 10
A consumer has a credit card with a limit of ₦50,000. If the consumer has a balance of ₦20,000, what is the percentage of the credit limit that the consumer has used?
Correct A. 40%
B. 30%
C. 20%
D. 10%

Correct Answer: A

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Question 11
A company is considering the implementation of a just-in-time (JIT) inventory system. What are the primary advantages of JIT inventory systems?
Correct A. Reduced inventory costs and improved product quality
B. Increased inventory levels and improved supply chain efficiency
C. Improved customer service and reduced lead times
D. Increased production costs and reduced product variety

Correct Answer: A

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Question 12
A sole trader is considering the formation of a partnership. What are the primary advantages of forming a partnership?
A. Increased capital and improved risk management
Correct B. Improved decision-making and reduced administrative costs
C. Increased tax liabilities and reduced personal liability
D. Reduced capital and improved personal liability

Correct Answer: B

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Question 13
A company is considering the implementation of a total quality management (TQM) system. What are the primary components of TQM?
Correct A. Customer focus, continuous improvement, and employee involvement
B. Reduced inventory levels, improved supply chain efficiency, and increased product variety
C. Improved product quality, reduced production costs, and increased customer satisfaction
D. Increased production costs, reduced product quality, and decreased customer satisfaction

Correct Answer: A

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Question 14
A company is considering the implementation of a just-in-time (JIT) inventory system. What are the primary challenges of implementing JIT inventory systems?
A. Reduced inventory costs and improved product quality
B. Increased inventory levels and improved supply chain efficiency
C. Improved customer service and reduced lead times
Correct D. Increased production costs and reduced product variety

Correct Answer: D

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Question 15
A sole trader is considering the formation of a partnership. What are the primary disadvantages of forming a partnership?
A. Increased capital and improved risk management
B. Improved decision-making and reduced administrative costs
Correct C. Increased tax liabilities and reduced personal liability
D. Reduced capital and improved personal liability

Correct Answer: C

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Question 16
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following best describes the primary goal of this marketing strategy?
A. To increase brand awareness
Correct B. To generate leads and drive sales
C. To build customer loyalty and retention
D. To create a positive brand image

Correct Answer: B

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Question 17
A firm's supply chain involves the transportation of goods from suppliers to manufacturing facilities. Which of the following modes of transportation is most likely to be used for this purpose?
A. Air freight
Correct B. Land freight
C. Sea freight
D. Rail freight

Correct Answer: B

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Question 18
A consumer purchases a product with a price of ₦500 and a 10% discount. What is the amount of the discount?
Correct A. ₦50
B. ₦60
C. ₦70
D. ₦80

Correct Answer: A

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Question 19
A company's financial statements show a net income of ₦1,000,000 and a total assets of ₦5,000,000. What is the company's return on assets (ROA) percentage?
A. 20%
Correct B. 25%
C. 30%
D. 35%

Correct Answer: B

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Question 20
A firm's marketing mix involves a product with a unique selling proposition (USP). Which of the following best describes the primary benefit of this USP?
A. To increase brand awareness
B. To generate leads and drive sales
C. To build customer loyalty and retention
Correct D. To differentiate the product from competitors

Correct Answer: D

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Question 21
A commercial bank's primary function is to act as a financial intermediary between savers and borrowers. However, it also provides other services such as cash management, foreign exchange, and investment advice. Which of the following is NOT a primary function of a commercial bank?
A. Accepting deposits from the public
B. Providing investment advice
C. Acting as a financial intermediary
Correct D. Issuing credit cards

Correct Answer: D

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Question 22
A company's marketing strategy involves creating a brand identity that differentiates it from its competitors. Which of the following is a key element of a brand identity?
A. Product features
B. Price
C. Packaging
Correct D. Brand name

Correct Answer: D

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Question 23
A consumer protection law aims to safeguard the rights of consumers in a market economy. Which of the following is a key principle of consumer protection?
A. Consumer sovereignty
B. Free market competition
Correct C. Protection of consumer rights
D. Government regulation

Correct Answer: C

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Question 24
A company's business law obligations include compliance with relevant statutes and regulations. Which of the following is a key statute that regulates business law in Nigeria?
Correct A. Companies and Allied Matters Act
B. Consumer Protection Act
C. Banking and Other Financial Institutions Act
D. Securities and Exchange Commission Act

Correct Answer: A

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Question 25
A company's marketing mix involves the 4 Ps: product, price, promotion, and place. Which of the following is NOT a key element of a company's marketing mix?
A. Product
B. Price
C. Promotion
Correct D. Quality

Correct Answer: D

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