Practice post utme uniport commerce 2024 Past Questions

Question 1

The Consumer Protection Act of 1999 in Nigeria provides for the protection of consumers from unfair trade practices. Which of the following is NOT a provision of the Act?

A. Prohibition of false or misleading advertisements

B. Prohibition of unfair contract terms

C. Prohibition of consumer credit agreements

Correct D. Prohibition of consumer education

Correct Answer: D

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Question 2

A company in Nigeria has a contract with a supplier to purchase goods worth ₦1,000,000. The contract specifies that the goods must be delivered within 30 days. If the supplier fails to deliver the goods within the specified time, what is the company's recourse?

Correct A. The company can terminate the contract and claim damages

B. The company can claim specific performance

C. The company can claim liquidated damages

D. The company can claim interest on the contract price

Correct Answer: A

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Question 3

A consumer in Nigeria purchases a product from a retailer, but the product is defective. The consumer returns the product to the retailer, who refuses to replace it or refund the purchase price. What is the consumer's next course of action?

Correct A. File a complaint with the Consumer Protection Council

B. Sue the retailer in court

C. Seek mediation from a consumer protection agency

D. Negotiate a settlement with the retailer

Correct Answer: A

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Question 4

A company in Nigeria is planning to expand its operations to a new market. The company has identified several potential suppliers, but it is unsure which one to choose. What is the best approach for the company to take?

Correct A. Conduct a thorough market analysis and evaluate the suppliers based on their reputation, quality, and price

B. Choose the supplier with the lowest price

C. Choose the supplier with the highest reputation

D. Choose the supplier with the fastest delivery time

Correct Answer: A

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Question 5

A consumer in Nigeria purchases a product online from a foreign retailer. The product is defective, and the consumer returns it to the retailer, who refuses to replace it or refund the purchase price. What is the consumer's next course of action?

Correct A. File a complaint with the Nigerian Consumer Protection Council

B. Sue the retailer in a Nigerian court

C. Seek mediation from a consumer protection agency

D. Negotiate a settlement with the retailer

Correct Answer: A

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Question 6

A company is considering the introduction of a new product line. The product requires an initial investment of ₦5 million and is expected to generate annual profits of ₦2 million for the next 5 years. The company's cost of capital is 10% per annum. Using the net present value (NPV) method, calculate the expected return on investment (ROI) for the new product line.

A. 20%

Correct B. 25%

C. 30%

D. 35%

Correct Answer: B

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Question 7

A consumer protection agency has received a complaint from a customer who was charged an interest rate of 20% per annum on a loan of ₦100,000. The customer claims that the interest rate is excessive and unfair. Using the concept of usury, determine whether the interest rate charged by the lender is excessive.

Correct A. Excessive

B. Fair

C. Usurious

D. Unfair

Correct Answer: A

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Question 8

A company is considering the introduction of a new business unit. The company has identified three potential locations for the new unit: Location A, Location B, and Location C. Each location has a different cost structure and market demand. Using the concept of break-even analysis, determine which location is the most profitable for the new business unit.

Correct A. Location A

B. Location B

C. Location C

D. All locations are equally profitable

Correct Answer: A

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Question 9

A company is considering the introduction of a new insurance product. The product requires an initial investment of ₦1 million and is expected to generate annual profits of ₦500,000 for the next 3 years. The company's cost of capital is 12% per annum. Using the concept of risk management, determine the expected return on investment (ROI) for the new insurance product.

A. 20%

Correct B. 25%

C. 30%

D. 35%

Correct Answer: B

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Question 10

A consumer protection agency has received a complaint from a customer who was charged an excessive interest rate on a loan. The customer claims that the interest rate is unfair and excessive. Using the concept of usury, determine whether the interest rate charged by the lender is excessive.

Correct A. Excessive

B. Fair

C. Usurious

D. Unfair

Correct Answer: A

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Question 11

A sole trader's business is considered a separate legal entity from its owner. Discuss the implications of this separation on the owner's personal liability.

A. The owner's personal assets are protected from business liabilities.

Correct B. The owner's personal assets are at risk of being seized to settle business debts.

C. The business is not required to pay taxes on its profits.

D. The business is not required to file annual returns with the relevant authorities.

Correct Answer: B

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Question 12

A company's articles of association specify that the board of directors has the authority to issue new shares. However, the company's memorandum of association prohibits the issuance of new shares without the approval of the shareholders. What is the legal effect of this conflict?

A. The articles of association take precedence over the memorandum of association.

Correct B. The memorandum of association takes precedence over the articles of association.

C. The conflict is resolved by the court's interpretation of the company's constitution.

D. The conflict is resolved by the shareholders' approval.

Correct Answer: B

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Question 13

A foreign company wishes to establish a branch office in Nigeria. What are the necessary steps the company must take to comply with Nigerian laws and regulations?

A. Register the branch office with the Corporate Affairs Commission (CAC) and obtain a business permit from the relevant state government.

Correct B. Obtain a license from the Nigerian Investment Promotion Commission (NIPC) and register the branch office with the CAC.

C. Register the branch office with the CAC and obtain a tax clearance certificate from the Federal Inland Revenue Service (FIRS).

D. Obtain a business permit from the relevant state government and register the branch office with the CAC.

Correct Answer: B

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Question 14

A company's insurance policy covers losses due to fire, theft, and liability. However, the policy excludes losses due to flood and earthquake. What is the legal effect of this exclusion?

Correct A. The exclusion is valid and the company is not entitled to claim for losses due to flood and earthquake.

B. The exclusion is invalid and the company is entitled to claim for losses due to flood and earthquake.

C. The exclusion is valid but the company can still claim for losses due to flood and earthquake if it can prove that the losses were not caused by the excluded events.

D. The exclusion is invalid but the company must still pay the premium for the excluded events.

Correct Answer: A

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Question 15

A bank's customer account is overdrawn by ₦50,000. The bank charges an overdraft fee of 5% per annum on the overdrawn amount. What is the total amount the customer must pay to settle the overdraft?

A. ₦55,000

B. ₦57,500

Correct C. ₦60,000

D. ₦62,500

Correct Answer: C

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Question 16

In a perfectly competitive market, the demand curve for a firm's product is its

Correct A. marginal revenue curve

B. marginal cost curve

C. average revenue curve

D. average cost curve

Correct Answer: A

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Question 17

A firm's break-even point is the point at which its

A. total revenue equals its fixed costs

B. total revenue equals its variable costs

Correct C. total revenue equals its total costs

D. total revenue equals its contribution margin

Correct Answer: C

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Question 18

The main advantage of a sole proprietorship is that it

A. has unlimited liability

B. has limited liability

Correct C. is easy to set up

D. has a high level of control

Correct Answer: C

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Question 19

A warehouse's main function is to

Correct A. store goods

B. transport goods

C. sell goods

D. produce goods

Correct Answer: A

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Question 20

The main purpose of the Consumer Protection Act is to

Correct A. protect consumers from unfair business practices

B. regulate the sale of goods and services

C. provide a framework for consumer complaints

D. promote fair competition among businesses

Correct Answer: A

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Question 21

The concept of specialization in production is closely related to the idea of comparative advantage. Explain how a country can benefit from specialization in production, given its comparative advantage.

Correct A. By producing goods and services that it can produce at a lower opportunity cost than other countries.

B. By producing goods and services that are in high demand in other countries.

C. By producing goods and services that are not produced by other countries.

D. By producing goods and services that are produced by other countries at a higher opportunity cost.

Correct Answer: A

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Question 22

A firm has the following cost function: C(q) = 2q^2 + 5q + 10. If the firm produces 10 units of output, what is the total cost of production?

A. ₦150

B. ₦200

Correct C. ₦250

D. ₦300

Correct Answer: C

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Question 23

A consumer has the following utility function: U(x, y) = 2x + 3y. If the consumer's income is ₦100 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal consumption bundle?

Correct A. x = 10, y = 5

B. x = 5, y = 10

C. x = 15, y = 3

D. x = 20, y = 2

Correct Answer: A

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Question 24

A firm has the following production function: Q = 2L^0.5K^0.5. If the firm wants to produce 100 units of output, and the price of labor is ₦10 per unit and the price of capital is ₦20 per unit, what is the minimum cost of production?

A. ₦1000

B. ₦1200

Correct C. ₦1500

D. ₦1800

Correct Answer: C

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Question 25

A consumer has the following budget constraint: 2x + 3y = 100. If the consumer's utility function is U(x, y) = 2x + 3y, what is the consumer's optimal consumption bundle?

Correct A. x = 20, y = 30

B. x = 30, y = 20

C. x = 40, y = 10

D. x = 50, y = 0

Correct Answer: A

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