POST UTME UNN 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied
A. decreases
B. increases
C. remains constant
D. fluctuates
Question 2
A company uses a road transport service to deliver its products. The company pays ₦500 per kilometer for the delivery. If the delivery distance is 200 kilometers, what is the total cost of the delivery?
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 3
A company exports 1000 units of a product to a foreign country. The export price is 10 per unit. If the exchange rate is 1 USD = 360 Naira, what is the total value of the export in Naira?
A. ₦120,000
B. ₦180,000
C. ₦240,000
D. ₦360,000
Question 4
A company has purchased an insurance policy to cover against business risks. What is the purpose of the insurance policy?
A. To reduce the company's liability
B. To increase the company's assets
C. To protect the company against business risks
D. To improve the company's cash flow
Question 5
A bank's cash reserve ratio is 10%. If the bank has a cash reserve of ₦1,000,000, what is the maximum amount of loans it can grant?
A. ₦9,000,000
B. ₦10,000,000
C. ₦11,000,000
D. ₦12,000,000
Question 6
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity of a product in such a market?
A. (P = 10, Q = 100)
B. (P = 20, Q = 50)
C. (P = 15, Q = 75)
D. (P = 25, Q = 25)
Question 7
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is NOT a characteristic of a successful marketing strategy?
A. It must be consistent with the company's overall business objectives.
B. It must be tailored to the specific needs of the target market.
C. It must be implemented without any budget allocation.
D. It must be evaluated regularly to ensure its effectiveness.
Question 8
A company's sole trader has a profit of ₦500,000. If the company's tax rate is 25%, what is the amount of tax the sole trader must pay?
A. ₦100,000
B. ₦125,000
C. ₦150,000
D. ₦200,000
Question 9
A company is considering exporting its products to a foreign market. What are the benefits of exporting?
A. Increased market share
B. Reduced competition
C. Access to new markets and customers
D. Improved brand image
Question 10
A company's articles of association are filed with which of the following?
A. Registrar of Companies
B. Inland Revenue Service
C. Federal High Court
D. Corporate Affairs Commission
Question 11
A firm's profit is calculated as the difference between revenue and cost of production. If the revenue is ₦50000 and the cost of production is ₦30000, what is the profit?
A. ₦10000
B. ₦20000
C. ₦30000
D. ₦40000
Question 12
A firm's cost of production includes both fixed and variable costs. If the fixed cost is ₦10000 and the variable cost is ₦50 per unit, and the firm produces 100 units, what is the total cost of production?
A. ₦15000
B. ₦20000
C. ₦25000
D. ₦30000
Question 13
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, which method should it choose?
A. Method A
B. Method B
C. Both methods are equally viable
D. Neither method is viable
Question 14
A consumer purchases a product with a recommended retail price (RRP) of ₦5,000. The consumer pays a discount of 10% and an additional 5% for a warranty. What is the consumer's total payment?
A. ₦4,250
B. ₦4,500
C. ₦4,750
D. ₦5,000
Question 15
A consumer protection agency receives a complaint from a consumer who purchased a product with a misleading advertisement. The agency investigates and finds that the advertisement was indeed misleading. What is the agency's next course of action?
A. Issue a warning to the manufacturer.
B. Impose a fine on the manufacturer.
C. Order the manufacturer to recall the product.
D. Close the case due to lack of evidence.

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