Practice post utme uniport commerce 2017 Past Questions

Question 1

A company's financial statements are audited annually by an independent auditor. What is the primary purpose of this audit?

A. To verify the company's financial statements and ensure they are presented fairly.

B. To identify areas of inefficiency in the company's operations.

Correct C. To provide assurance to stakeholders that the company's financial statements are accurate and reliable.

D. To provide recommendations for improving the company's financial management.

Correct Answer: C

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Question 2

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. ₦300,000

C. ₦400,000

D. ₦500,000

Correct Answer: A

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Question 3

A company is considering expanding its operations to a new market. What is the primary factor that the company should consider before making a decision?

A. The company's financial resources

B. The company's competitive advantage

Correct C. The market demand and competition

D. The company's management structure

Correct Answer: C

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Question 4

A company's production process involves the use of a machine that requires regular maintenance to ensure optimal performance. What is the primary benefit of regular maintenance?

A. Increased production capacity

B. Improved product quality

Correct C. Reduced downtime and increased efficiency

D. Lower maintenance costs

Correct Answer: C

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Question 5

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

A. Increased lending to customers

B. Improved risk management

C. Reduced transaction costs

Correct D. Increased financial stability

Correct Answer: D

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Question 6

A sole trader's business is not registered under any law. Which of the following is a consequence of this?

A. The sole trader is not liable for any business debts.

B. The sole trader's business is not subject to any tax laws.

C. The sole trader's business is not required to keep any records.

Correct D. The sole trader's business is not protected by any consumer laws.

Correct Answer: D

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Question 7

A company has a share capital of ₦10,000,000 divided into 1,000,000 ordinary shares of ₦10 each. If the company issues 500,000 shares at a premium of ₦5 per share, what is the amount received from the issue of shares?

A. ₦2,500,000

B. ₦5,000,000

Correct C. ₦7,500,000

D. ₦10,000,000

Correct Answer: C

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Question 8

A bank offers a 5-year fixed deposit account with an interest rate of 12% per annum compounded annually. If a customer deposits ₦100,000 at the beginning of the first year, what is the amount in the account at the end of the fifth year?

Correct A. ₦163,922.78

B. ₦164,922.78

C. ₦165,922.78

D. ₦166,922.78

Correct Answer: A

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Question 9

A company's marketing strategy involves a 20% discount on all products for the first 100 customers. If the original price of each product is ₦500, what is the total revenue from the first 100 customers?

A. ₦45,000

Correct B. ₦50,000

C. ₦55,000

D. ₦60,000

Correct Answer: B

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Question 10

A consumer protection law requires that all goods sold in a market must be accompanied by a warranty. Which of the following is a consequence of this law?

A. The consumer is not liable for any damages caused by the goods.

B. The manufacturer is liable for any damages caused by the goods.

C. The consumer must pay for any repairs or replacements of the goods.

Correct D. The consumer has the right to return the goods for a full refund.

Correct Answer: D

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Question 11

A company's sole trader has a warehouse with a capacity of 1000 units. The company has 800 units in stock. If the company receives an order for 500 units, what is the probability that the warehouse will be empty after fulfilling the order?

A. 0.2

Correct B. 0.4

C. 0.6

D. 0.8

Correct Answer: B

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Question 12

A company uses a just-in-time inventory system. If the company's supplier is 95% reliable, what is the probability that the company will not receive a shipment of 100 units within 3 days?

A. 0.05

B. 0.1

C. 0.15

Correct D. 0.2

Correct Answer: D

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Question 13

A company's marketing strategy involves a 20% discount on all products. If the company's average sale price is ₦500, what is the new sale price after the discount?

Correct A. ₦400

B. ₦450

C. ₦500

D. ₦550

Correct Answer: A

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Question 14

A company's sole trader has a warehouse with a capacity of 1000 units. The company has 800 units in stock. If the company receives an order for 500 units, what is the probability that the warehouse will be empty after fulfilling the order?

A. 0.2

Correct B. 0.4

C. 0.6

D. 0.8

Correct Answer: B

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Question 15

A company uses a just-in-time inventory system. If the company's supplier is 95% reliable, what is the probability that the company will not receive a shipment of 100 units within 3 days?

A. 0.05

B. 0.1

C. 0.15

Correct D. 0.2

Correct Answer: D

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Question 16

A firm's marketing strategy is most likely to be effective if it focuses on creating a unique selling proposition (USP) that differentiates its product from those of its competitors. Which of the following best describes the USP?

Correct A. A specific feature or benefit that a product offers

B. A low price that a product is sold for

C. A high quality that a product is known for

D. A wide range of products that a company offers

Correct Answer: A

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Question 17

A company is considering exporting its products to a foreign market. Which of the following is a major advantage of exporting?

A. Increased competition from local producers

B. Reduced market share due to import competition

Correct C. Access to new markets and customers

D. Higher production costs due to foreign labor

Correct Answer: C

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Question 18

A consumer protection agency has received complaints about a company's false advertising practices. Which of the following is a possible remedy that the agency could impose?

A. A fine of ₦100,000

B. A warning letter to the company

Correct C. A court order to stop the false advertising

D. A refund of all money paid by consumers

Correct Answer: C

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Question 19

A bank is considering offering a new type of loan to its customers. Which of the following is a key factor that the bank should consider when deciding whether to offer the loan?

A. The interest rate that the bank will charge

Correct B. The creditworthiness of the potential borrowers

C. The potential return on investment for the bank

D. The competition from other financial institutions

Correct Answer: B

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Question 20

A company is considering implementing a just-in-time (JIT) inventory system. Which of the following is a key benefit of JIT?

Correct A. Reduced inventory costs

B. Improved product quality

C. Increased flexibility in production

D. Reduced waste and scrap

Correct Answer: A

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Question 21

The following diagram shows a demand curve for a product. If the price elasticity of demand is 0.5, what is the percentage change in quantity demanded if the price increases by 10%?

A. 5%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 22

A company has a profit function given by ( pi = 100x - 2x^2 ), where ( x ) is the number of units produced. If the company produces 20 units, what is the profit?

A. ₦1800

B. ₦2000

Correct C. ₦2200

D. ₦2400

Correct Answer: C

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Question 23

A firm is considering two marketing strategies: Strategy A and Strategy B. The expected profit from Strategy A is ₦100,000, while the expected profit from Strategy B is ₦120,000. If the probability of success for Strategy A is 0.6, what is the expected profit from Strategy A?

Correct A. ₦60,000

B. ₦80,000

C. ₦100,000

D. ₦120,000

Correct Answer: A

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Question 24

A bank offers a 5-year fixed deposit with an interest rate of 10% per annum. If the principal amount is ₦100,000, what is the future value of the investment?

A. ₦161,051

B. ₦162,051

Correct C. ₦163,051

D. ₦164,051

Correct Answer: C

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Question 25

A company has a budget of ₦500,000 for advertising. If the cost of advertising in a newspaper is ₦10,000 per ad, and the cost of advertising on the radio is ₦20,000 per ad, what is the maximum number of ads that can be placed in the newspaper?

A. 25

B. 30

Correct C. 35

D. 40

Correct Answer: C

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