POST UTME UNN 2024 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 2024 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
In a sole trader business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Unlimited liability
C. Tax benefits
Correct D. Flexibility in decision-making

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A company has a capital structure consisting of 60% debt and 40% equity. If the company's cost of debt is 8% and the cost of equity is 12%, what is the company's weighted average cost of capital (WACC)?
A. 6%
Correct B. 7%
C. 8%
D. 9%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A bank offers a 5-year fixed deposit with an interest rate of 10% per annum compounded annually. If a customer invests ₦100,000, what is the future value of the investment after 5 years?
A. ₦163,922
Correct B. ₦164,922
C. ₦165,922
D. ₦166,922

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company's marketing strategy involves a 4Ps approach. Which of the following is NOT one of the 4 Ps?
A. Product
B. Price
C. Promotion
Correct D. Place

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A transport company offers a 10% discount on its services for customers who pay upfront. If a customer pays ₦10,000 upfront, what is the amount they will pay after the discount?
A. ₦9,000
Correct B. ₦9,500
C. ₦10,000
D. ₦10,500

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A sole trader's business is considered a separate legal entity from its owner. Which of the following is a consequence of this separation?
Correct A. The owner is personally liable for the business's debts.
B. The business is taxed separately from its owner.
C. The owner has unlimited liability for the business's actions.
D. The business is exempt from paying corporation tax.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A company's articles of association specify that the company's profits will be distributed among its shareholders in the ratio 2:3:5. If the total profit is ₦120,000, how much will each shareholder receive?
A. ₦4,000
Correct B. ₦6,000
C. ₦8,000
D. ₦10,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A consumer protection law requires that all goods sold in a particular market must be labeled with their country of origin. Which of the following is a benefit of this labeling requirement?
A. It helps to prevent counterfeiting.
B. It promotes fair competition among businesses.
Correct C. It allows consumers to make informed purchasing decisions.
D. It reduces the risk of product liability.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A business is considering entering into a contract with a supplier. The contract specifies that the supplier will deliver goods to the business within 30 days of receipt of payment. Which of the following is a type of risk that the business is exposed to?
Correct A. Credit risk
B. Market risk
C. Operational risk
D. Reputational risk

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A company's financial statements show that its net profit for the year was ₦500,000. If the company's tax rate is 25%, how much tax will it pay?
A. ₦100,000
Correct B. ₦125,000
C. ₦150,000
D. ₦200,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
In a just-in-time (JIT) inventory system, what is the primary goal of the warehouse manager?
A. To minimize inventory costs
B. To maximize storage capacity
Correct C. To reduce lead times
D. To increase inventory turnover

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A company is considering launching a new product in a foreign market. What type of market research would be most appropriate?
A. Conjoint analysis
B. Cluster analysis
Correct C. Market segmentation
D. Competitor analysis

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A firm is considering outsourcing its logistics operations to a third-party provider. What are the potential benefits of this decision?
Correct A. Reduced costs, improved efficiency
B. Increased flexibility, better customer service
C. Enhanced security, reduced risk
D. Improved quality, increased innovation

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A consumer protection agency has received complaints about a company's misleading advertising practices. What is the primary responsibility of the agency?
Correct A. To investigate the complaints and take enforcement action
B. To educate the public about consumer rights
C. To provide mediation services for consumers and businesses
D. To conduct market research on consumer behavior

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A company is considering entering into a joint venture with a foreign partner. What are the potential risks associated with this decision?
A. Cultural differences, communication barriers
Correct B. Financial risks, market uncertainty
C. Operational risks, management challenges
D. Strategic risks, competitive threats

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A bank's cash reserve requirement is 10% of its total deposits. If the bank has ₦10,000,000 in deposits, how much cash must it reserve?
Correct A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A company's marketing strategy involves a 20% discount on all products for the first 100 customers. If a product originally costs ₦5,000, how much will a customer pay if they are one of the first 100 customers?
Correct A. ₦4,000
B. ₦4,500
C. ₦5,000
D. ₦5,500

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A warehouse has 500 boxes of goods, each containing 20 items. If 10 boxes are removed, how many items are left in the warehouse?
A. 8,000
Correct B. 9,000
C. 10,000
D. 11,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A company imports goods worth ₦1,000,000 from a foreign country. If the exchange rate is 1 USD = 400 NGN, how much is the import worth in USD?
Correct A. 2,500
B. 2,500.00
C. 2,500.00 USD
D. 2,500.00 USD

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A bank's interest rate is 12% per annum. If a customer deposits ₦10,000 for 1 year, how much interest will they earn?
Correct A. ₦1,200
B. ₦1,200.00
C. ₦1,200.00
D. ₦1,200.00

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A consumer protection agency has the power to investigate and prosecute businesses for unfair trade practices. Which of the following is a type of unfair trade practice?
Correct A. False advertising
B. Price-fixing
C. Bid-rigging
D. Unfair competition

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A company's marketing strategy involves creating a sense of urgency among customers to purchase a product. Which of the following is an example of a marketing tactic used to create this sense of urgency?
Correct A. Limited-time offer
B. Free trial
C. Discount
D. Gift with purchase

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A bank's financial statements show a decrease in its cash balance over a period of time. Which of the following could be the reason for this decrease?
A. Increase in deposits
B. Decrease in loans
Correct C. Increase in operating expenses
D. Decrease in cash reserves

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A consumer purchases a product online and receives a damaged item. Which of the following is the consumer's right under the Consumer Protection Act?
Correct A. To return the product for a full refund
B. To exchange the product for a similar item
C. To claim compensation for damages
D. To cancel the purchase

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A company's financial statements show a high debt-to-equity ratio. Which of the following is a potential risk associated with this ratio?
A. High interest expenses
Correct B. Low credit rating
C. High dividend payments
D. Low stock price

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support