Practice post utme uniport commerce 2020 Past Questions

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 producing more cars than Country B

B. Country A producing more wheat than Country B

C. Country A producing cars and Country B producing wheat

Correct D. Country A producing wheat and Country B producing cars

Correct Answer: D

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Question 2

A company has a policy of paying its employees a fixed salary of ₦50,000 per month, plus a 10% bonus on their sales. If an employee sells ₦100,000 worth of goods in a month, how much will they earn in total?

A. ₦60,000

B. ₦65,000

C. ₦70,000

Correct D. ₦75,000

Correct Answer: D

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Question 3

A consumer protection agency has received a complaint from a customer who was sold a defective product. The agency has the power to investigate the complaint and take action against the seller if necessary. Which of the following is a correct example of the agency's power?

Correct A. To investigate the complaint and take action against the seller

B. To ignore the complaint and do nothing

C. To fine the seller and order them to replace the product

D. To close down the seller's business

Correct Answer: A

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Question 4

A company has a liability of ₦1,000,000 and an asset of ₦500,000. What is the company's net worth?

Correct A. ₦500,000

B. ₦1,000,000

C. ₦1,500,000

D. ₦2,000,000

Correct Answer: A

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Question 5

A person has a life insurance policy with a premium of ₦10,000 per year. If the person dies, the insurance company will pay ₦500,000 to the beneficiary. What is the person's expected loss if they die?

Correct A. ₦490,000

B. ₦490,000

C. ₦490,000

D. ₦490,000

Correct Answer: A

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Question 6

The concept of 'Just-in-Time' inventory system is most closely related to which of the following marketing strategies?

Correct A. Mass Customization

B. Product Differentiation

C. Market Segmentation

D. Target Marketing

Correct Answer: A

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Question 7

A firm's ability to adapt to changing market conditions is best described by which of the following concepts?

A. Market Structure

B. Market Conduct

C. Market Performance

Correct D. Market Adaptability

Correct Answer: D

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Question 8

The concept of 'Economies of Scale' is most closely related to which of the following production strategies?

Correct A. Mass Production

B. Batch Production

C. Job Production

D. Flexible Manufacturing

Correct Answer: A

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Question 9

A firm's ability to create a unique selling proposition is best described by which of the following concepts?

Correct A. Product Differentiation

B. Market Segmentation

C. Target Marketing

D. Brand Loyalty

Correct Answer: A

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Question 10

The concept of 'Supply Chain Management' is most closely related to which of the following business functions?

A. Marketing

B. Finance

Correct C. Operations

D. Human Resource

Correct Answer: C

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Question 11

In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will

A. increase

Correct B. decrease

C. remain constant

D. shift to the left

Correct Answer: B

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Question 12

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?

A. 24

B. 36

Correct C. 48

D. 60

Correct Answer: C

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Question 13

A company's financial statements show that its total assets increased by 15% and its total liabilities increased by 10% over the past year. If the company's initial total assets were ₦100 million, what is its current total assets?

A. ₦115 million

B. ₦120 million

Correct C. ₦125 million

D. ₦130 million

Correct Answer: C

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Question 14

A firm's revenue function is given by R = 2Q^2. If the firm's current output is Q = 4, what is its current revenue?

A. 32

B. 64

Correct C. 128

D. 256

Correct Answer: C

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Question 15

A company's financial statements show that its net income increased by 20% and its total assets increased by 15% over the past year. If the company's initial total assets were ₦100 million, what is its current net income?

A. ₦24 million

B. ₦25 million

Correct C. ₦26 million

D. ₦27 million

Correct Answer: C

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Question 16

A company's assets are valued at ₦1.2 billion, liabilities are ₦800 million, and equity is ₦400 million. What is the company's debt-to-equity ratio?

A. 1.5

Correct B. 2.0

C. 2.5

D. 3.0

Correct Answer: B

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Question 17

A consumer purchases a product with a price of ₦5,000 and a 10% discount. What is the amount of the discount?

Correct A. ₦500

B. ₦1,000

C. ₦1,500

D. ₦2,000

Correct Answer: A

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Question 18

A company's revenue is ₦10 million, and its cost of goods sold is ₦6 million. What is the company's gross profit?

Correct A. ₦2 million

B. ₦3 million

C. ₦4 million

D. ₦5 million

Correct Answer: A

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Question 19

A bank's interest rate is 12% per annum, compounded annually. If a principal amount of ₦10,000 is invested for 2 years, what is the future value?

A. ₦12,736

Correct B. ₦13,232

C. ₦13,728

D. ₦14,224

Correct Answer: B

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Question 20

A company's stock is valued at ₦100 per share. If the company issues 10,000 shares, what is the total value of the stock?

A. ₦1 million

B. ₦1.5 million

Correct C. ₦2 million

D. ₦2.5 million

Correct Answer: C

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Question 21

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 50 units of wheat and 200 units of cloth.

Correct Answer: C

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Question 22

A company is considering two different production processes for its product. Process A requires an initial investment of ₦100,000 and produces 100 units of the product per day, while Process B requires an initial investment of ₦150,000 and produces 120 units of the product per day. Which process should the company choose if it wants to maximize its profit?

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 23

A sole trader has a business that generates an annual revenue of ₦500,000 and an annual expense of ₦200,000. What is the sole trader's net profit?

Correct A. ₦300,000

B. ₦400,000

C. ₦500,000

D. ₦600,000

Correct Answer: A

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Question 24

A company has a warehouse that stores 500 units of a product. The company wants to ensure that it has at least 20% of the product in reserve. How many units of the product should the company keep in reserve?

A. 100 units

Correct B. 200 units

C. 300 units

D. 400 units

Correct Answer: B

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Question 25

A company is considering two different pricing strategies for its product. Strategy A involves pricing the product at ₦100 per unit, while Strategy B involves pricing the product at ₦120 per unit. Which strategy should the company choose if it wants to maximize its revenue?

A. Strategy A

Correct B. Strategy B

C. Both strategies are equally profitable

D. Neither strategy is profitable

Correct Answer: B

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