Practice post utme uniosun commerce 2024 Past Questions

Question 1

In the context of international trade, what is the primary purpose of the World Trade Organization (WTO)?

A. To regulate international trade agreements

Correct B. To promote free trade among member countries

C. To provide a forum for resolving trade disputes

D. To establish a common currency for international trade

Correct Answer: B

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Question 2

A company is considering two different production processes for manufacturing a product. Process A requires an initial investment of ₦1,500,000 and has a variable cost of ₦500 per unit. Process B requires an initial investment of ₦2,000,000 and has a variable cost of ₦300 per unit. If the company expects to sell 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

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Question 3

A firm is considering two different marketing strategies for promoting a new product. Strategy A involves a high level of advertising and promotion, with a budget of ₦1,000,000. Strategy B involves a lower level of advertising and promotion, with a budget of ₦500,000. If the firm expects to sell 5,000 units, 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

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Question 4

A company is considering two different warehouse locations for storing its products. Location A is closer to the market, but has a higher rent of ₦500,000 per year. Location B is farther from the market, but has a lower rent of ₦300,000 per year. If the company expects to store 10,000 units, which location should it choose?

A. Location A

Correct B. Location B

C. Both locations are equally suitable

D. Neither location is suitable

Correct Answer: B

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Question 5

A firm is considering two different production processes for manufacturing a product. Process A requires an initial investment of ₦1,000,000 and has a variable cost of ₦200 per unit. Process B requires an initial investment of ₦1,500,000 and has a variable cost of ₦150 per unit. If the firm expects to sell 8,000 units, which process should it choose?

A. Process A

Correct B. Process B

C. Both processes are equally profitable

D. Neither process is profitable

Correct Answer: B

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Question 6

In a consumer protection context, what is the primary purpose of the Consumer Protection Act of 1999?

A. To regulate consumer credit

Correct B. To protect consumers from unfair trade practices

C. To promote consumer education

D. To establish consumer tribunals

Correct Answer: B

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Question 7

A company issues a prospectus to raise capital from the public. What is the primary legal requirement for the prospectus?

Correct A. To disclose all material information

B. To provide a detailed financial analysis

C. To include a statement of the company's objectives

D. To specify the minimum subscription amount

Correct Answer: A

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Question 8

A bank offers a credit card with an annual interest rate of 20% and a minimum payment of 2% of the outstanding balance. What is the effective interest rate for the first year?

A. 18%

B. 20%

Correct C. 22%

D. 25%

Correct Answer: C

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Question 9

A company purchases a liability insurance policy with a premium of ₦100,000. The policy covers a maximum liability of ₦500,000. What is the excess amount?

A. ₦300,000

Correct B. ₦400,000

C. ₦500,000

D. ₦600,000

Correct Answer: B

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Question 10

A company exports goods worth ₦1,000,000 to a foreign country. The exchange rate is 1 USD = ₦500. What is the value of the export in USD?

A. 2,000

Correct B. 2,500

C. 3,000

D. 3,500

Correct Answer: B

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Question 11

A firm's marketing strategy is to increase its market share by 15% within the next 6 months. If the current market share is 25%, what is the required sales revenue increase?

A. ₦125,000

B. ₦150,000

Correct C. ₦175,000

D. ₦200,000

Correct Answer: C

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Question 12

A company's cost of goods sold (COGS) is ₦1,500,000. If the selling price is ₦3,000, and the desired profit margin is 20%, what is the required selling price?

A. ₦3,600

B. ₦3,800

C. ₦4,000

Correct D. ₦4,200

Correct Answer: D

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Question 13

A firm's marketing mix is 2:3:1:4 for product, price, promotion, and place, respectively. If the total budget is ₦2,000,000, what is the allocated budget for promotion?

A. ₦400,000

B. ₦600,000

Correct C. ₦800,000

D. ₦1,000,000

Correct Answer: C

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Question 14

A company's financial statement shows a net income of ₦1,200,000 and a total assets of ₦5,000,000. What is the return on assets (ROA)?

A. 24%

Correct B. 30%

C. 36%

D. 42%

Correct Answer: B

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Question 15

A firm's supply chain involves a supplier, a manufacturer, a distributor, and a retailer. If the supplier's price is ₦1,000, and the manufacturer's price is ₦1,500, what is the total cost to the retailer?

A. ₦3,000

B. ₦3,500

C. ₦4,000

Correct D. ₦4,500

Correct Answer: D

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Question 16

A sole trader's business is considered a separate legal entity from its owner. Which of the following is a consequence of this separation?

A. The sole trader's business is liable for its owner's debts.

Correct B. The sole trader's business is not liable for its owner's debts.

C. The sole trader's business is responsible for its owner's taxes.

D. The sole trader's business is not responsible for its owner's taxes.

Correct Answer: B

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Question 17

A company's production process involves the use of specialized machinery. Which of the following is a benefit of this specialization?

A. Increased production costs.

B. Improved product quality.

Correct C. Reduced production time.

D. Increased labor costs.

Correct Answer: C

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Question 18

A country's foreign trade involves the importation of goods from another country. Which of the following is a potential benefit of this trade?

A. Increased domestic unemployment.

B. Improved domestic product quality.

Correct C. Reduced domestic prices.

D. Increased domestic income.

Correct Answer: C

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Question 19

An insurance policy covers a business against losses due to natural disasters. Which of the following is a type of risk management strategy?

A. Diversification.

Correct B. Hedging.

C. Speculation.

D. Risk avoidance.

Correct Answer: B

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Question 20

A consumer protection law requires businesses to provide clear and accurate information about their products. Which of the following is a consequence of this law?

Correct A. Increased consumer trust.

B. Reduced consumer complaints.

C. Improved product quality.

D. Increased business costs.

Correct Answer: A

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Question 21

A company is considering two different production methods for its new product. Method A involves a higher initial investment but lower production costs, while Method B involves a lower initial investment but higher production costs. If the company expects to produce 10,000 units per year for 5 years, and the market price of the product is ₦500 per unit, which production method should the company choose?

Correct A. Method A

B. Method B

C. Method A and Method B are equally profitable

D. More information is needed to make a decision

Correct Answer: A

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Question 22

A consumer protection agency is investigating a complaint about a company's advertising practices. The company has been accused of making false claims about the benefits of its product. Which of the following is a key principle of consumer protection law?

A. The company has the right to make any claim it wants about its product

B. The consumer has the right to make any claim it wants about the product

Correct C. The company must provide evidence to support its claims

D. The consumer must provide evidence to support its claims

Correct Answer: C

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Question 23

A company is considering expanding its operations to a new country. The company has identified several potential locations, but is concerned about the risks associated with each location. Which of the following is a key factor to consider when evaluating the risks of a new location?

A. The cost of labor in the new location

B. The cost of transportation to the new location

Correct C. The political stability of the new location

D. The environmental impact of the new location

Correct Answer: C

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Question 24

A company is considering implementing a new marketing strategy to increase sales. The company has identified several potential strategies, but is concerned about the costs associated with each strategy. Which of the following is a key factor to consider when evaluating the costs of a new marketing strategy?

Correct A. The cost of advertising the new product

B. The cost of producing the new product

C. The cost of distributing the new product

D. The cost of maintaining a website for the new product

Correct Answer: A

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Question 25

A company is considering implementing a new insurance policy to protect against risks. The company has identified several potential policies, but is concerned about the costs associated with each policy. Which of the following is a key factor to consider when evaluating the costs of a new insurance policy?

Correct A. The cost of premiums for the new policy

B. The cost of deductibles for the new policy

C. The cost of co-payments for the new policy

D. The cost of maintaining a claims adjuster for the new policy

Correct Answer: A

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POST UTME UNIOSUN 2024 Commerce | Objective

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