POST UTME UNN 2017 Commerce | Objective

Are you preparing for POST UTME UNN exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
In a perfectly competitive market, what is the relationship between the marginal revenue product of labor and the marginal factor cost of labor?
Correct A. MRP = MFC
B. MRP > MFC
C. MRP < MFC
D. MRP = -MFC

Correct Answer: A

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Question 2
A company's production function is given by Q = 100L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the optimal combination of labor and capital that minimizes the cost of production?
A. L = 10, K = 20
B. L = 20, K = 10
Correct C. L = 15, K = 15
D. L = 25, K = 5

Correct Answer: C

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Question 3
A firm is considering two investment projects. Project A has a 10% chance of generating ₦100,000 and a 90% chance of generating ₦0. Project B has a 20% chance of generating ₦80,000 and an 80% chance of generating ₦0. Which project has a higher expected return?
Correct A. Project A
B. Project B
C. Both projects have the same expected return
D. Neither project has a higher expected return

Correct Answer: A

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Question 4
A company has a production function Q = 2L^0.5K^0.5. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, what is the optimal combination of labor and capital that minimizes the cost of production?
A. L = 10, K = 20
B. L = 20, K = 10
Correct C. L = 15, K = 15
D. L = 25, K = 5

Correct Answer: C

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Question 5
A firm is considering two investment projects. Project A has a 10% chance of generating ₦100,000 and a 90% chance of generating ₦0. Project B has a 20% chance of generating ₦80,000 and an 80% chance of generating ₦0. Which project has a higher expected return?
Correct A. Project A
B. Project B
C. Both projects have the same expected return
D. Neither project has a higher expected return

Correct Answer: A

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Question 6
The concept of specialization in commerce refers to the process by which a firm focuses on producing a specific product or service, thereby increasing its efficiency and productivity. Which of the following is a characteristic of specialization?
A. Increased competition
Correct B. Reduced production costs
C. Improved product quality
D. Increased market share

Correct Answer: B

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Question 7
A sole trader is a type of business organization that is owned and operated by one individual. What is the main advantage of being a sole trader?
A. Limited liability
B. Unlimited liability
Correct C. Flexibility in decision-making
D. Increased tax burden

Correct Answer: C

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Question 8
A company is a type of business organization that is owned by shareholders. What is the main disadvantage of being a company?
A. Limited liability
B. Unlimited liability
C. Increased regulatory compliance
Correct D. Reduced flexibility in decision-making

Correct Answer: D

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Question 9
Transportation is an essential component of the supply chain. Which of the following is a type of transportation mode?
A. Air transportation
B. Land transportation
C. Sea transportation
Correct D. All of the above

Correct Answer: D

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Question 10
A bank is a financial institution that provides various financial services to its customers. What is the main function of a bank?
A. To provide loans to customers
B. To accept deposits from customers
C. To provide investment services to customers
Correct D. All of the above

Correct Answer: D

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Question 11
A company's marketing strategy involves a mix of advertising, sales promotion, and public relations. Which of the following is a characteristic of a sales promotion?
Correct A. Offering a discount on a product
B. Creating a new product
C. Using social media to promote a product
D. Hiring a new salesperson

Correct Answer: A

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Question 12
A firm's risk management strategy involves identifying, assessing, and mitigating risks. Which of the following is a type of risk?
A. Financial risk
Correct B. Operational risk
C. Strategic risk
D. Compliance risk

Correct Answer: B

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Question 13
A company's home trade involves importing and exporting goods. Which of the following is a benefit of international trade?
A. Increased competition
B. Improved quality of goods
C. Increased market share
Correct D. Increased employment opportunities

Correct Answer: D

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Question 14
A firm's introduction to commerce involves understanding the principles of business. Which of the following is a principle of business?
Correct A. Profit maximization
B. Risk minimization
C. Market segmentation
D. Product differentiation

Correct Answer: A

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Question 15
A company's transport and communication involves the movement of goods and information. Which of the following is a mode of transport?
Correct A. Road transport
B. Rail transport
C. Air transport
D. Water transport

Correct Answer: A

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Question 16
A sole trader's business is considered a separate legal entity from its owner. However, the owner's personal assets are not protected in case of business debts. What is the name of this type of business?
Correct A. Sole Trader
B. Partnership
C. Limited Liability Company
D. Cooperative

Correct Answer: A

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Question 17
A company's production process involves the transformation of raw materials into finished goods. Which of the following is an example of a production function?
A. Cost Function
B. Revenue Function
Correct C. Production Function
D. Profit Function

Correct Answer: C

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Question 18
A business owner purchases an insurance policy to protect against losses due to fire. What type of risk is being managed?
Correct A. Pure Risk
B. Speculative Risk
C. Business Risk
D. Financial Risk

Correct Answer: A

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Question 19
A company exports goods to a foreign country. What type of trade is this?
A. Import
Correct B. Export
C. Domestic Trade
D. International Trade

Correct Answer: B

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Question 20
A bank offers a loan to a customer at an interest rate of 10% per annum. What is the present value of a future cash flow of ₦100,000 due in 5 years?
Correct A. ₦83,333.33
B. ₦86,667.67
C. ₦90,000.00
D. ₦93,333.33

Correct Answer: A

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Question 21
A sole trader's business is considered a separate legal entity from its owner. True or False?
A. True
Correct B. False
C. Depends on the jurisdiction
D. Not applicable

Correct Answer: B

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Question 22
A company's Memorandum of Association (MoA) is a document that outlines the company's objectives, structure, and management. True or False?
Correct A. True
B. False
C. Partially true
D. Not applicable

Correct Answer: A

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Question 23
The primary function of a bank is to act as a financial intermediary between savers and borrowers. True or False?
Correct A. True
B. False
C. Partially true
D. Not applicable

Correct Answer: A

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Question 24
A sole trader's business is considered a separate legal entity from its owner. True or False?
A. True
Correct B. False
C. Depends on the jurisdiction
D. Not applicable

Correct Answer: B

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Question 25
A company's Memorandum of Association (MoA) is a document that outlines the company's objectives, structure, and management. True or False?
Correct A. True
B. False
C. Partially true
D. Not applicable

Correct Answer: A

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