Practice post utme wellspring university commerce 2018 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 a fundamental principle of consumer protection?

Correct A. The right to safety

B. The right to be heard

C. The right to information

D. The right to choose

Correct Answer: A

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Question 2

A company is considering exporting its products to a foreign market. Which of the following is a key consideration in the decision-making process?

A. Market size and growth rate

B. Competition from local producers

Correct C. Trade barriers and regulations

D. Currency exchange rates

Correct Answer: C

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Question 3

A marketing manager is developing a new advertising campaign for a product. Which of the following is a key objective of the campaign?

A. To increase brand awareness

Correct B. To generate leads and sales

C. To build customer loyalty

D. To create a buzz and generate publicity

Correct Answer: B

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Question 4

A bank is considering offering a new loan product to its customers. Which of the following is a key consideration in the decision-making process?

A. The interest rate and fees

Correct B. The credit risk and default rate

C. The liquidity and funding requirements

D. The regulatory and compliance requirements

Correct Answer: B

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Question 5

A company is considering investing in a new project. Which of the following is a key consideration in the decision-making process?

A. The return on investment (ROI)

B. The break-even point and cash flow

Correct C. The risk and uncertainty of the project

D. The competitive advantage and market share

Correct Answer: C

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Question 6

A firm's ability to adapt to changing market conditions is a key aspect of its

Correct A. Competitive Advantage

B. Market Structure

C. Barriers to Entry

D. Economies of Scale

Correct Answer: A

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Question 7

The concept of 'Just-in-Time' inventory management involves

A. Maintaining a large inventory buffer

Correct B. Reducing inventory levels to minimize holding costs

C. Increasing production capacity to meet demand

D. Implementing a push-based supply chain strategy

Correct Answer: B

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Question 8

A company's 'Value Chain' consists of

Correct A. Primary, Secondary, and Tertiary Activities

B. Only Primary and Secondary Activities

C. Only Tertiary Activities

D. Primary and Tertiary Activities

Correct Answer: A

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Question 9

The 'Theory of Planned Behaviour' suggests that an individual's intention to perform a behaviour is influenced by

Correct A. Attitude, Subjective Norm, and Perceived Behavioural Control

B. Attitude and Subjective Norm

C. Perceived Behavioural Control and Subjective Norm

D. Attitude and Perceived Behavioural Control

Correct Answer: A

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Question 10

A firm's 'SWOT Analysis' involves identifying its

Correct A. Strengths, Weaknesses, Opportunities, and Threats

B. Strengths and Weaknesses

C. Opportunities and Threats

D. Only Strengths

Correct Answer: A

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Question 11

A company has a warehouse with a capacity to store 5000 units of a product. The warehouse is currently 70% full, with 3500 units stored. If the company receives an order for 1200 units, what is the maximum number of units that can be stored in the warehouse after fulfilling the order?

Correct A. 2500

B. 3000

C. 3500

D. 4000

Correct Answer: A

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Question 12

A foreign company is considering investing in a Nigerian business. The company's financial advisor has recommended a minimum return on investment (ROI) of 15%. If the company invests ₦5,000,000 in the Nigerian business, what is the minimum amount of profit it must make to achieve the recommended ROI?

Correct A. ₦750,000

B. ₦750,000

C. ₦750,000

D. ₦750,000

Correct Answer: A

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Question 13

A bank offers a loan of ₦1,000,000 at an interest rate of 12% per annum. If the loan is to be repaid in 5 years, what is the total amount to be repaid?

Correct A. ₦1,200,000

B. ₦1,200,000

C. ₦1,200,000

D. ₦1,200,000

Correct Answer: A

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Question 14

A company has a warehouse with a capacity to store 5000 units of a product. The warehouse is currently 70% full, with 3500 units stored. If the company receives an order for 1200 units, what is the maximum number of units that can be stored in the warehouse after fulfilling the order?

Correct A. 2500

B. 3000

C. 3500

D. 4000

Correct Answer: A

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Question 15

A foreign company is considering investing in a Nigerian business. The company's financial advisor has recommended a minimum return on investment (ROI) of 15%. If the company invests ₦5,000,000 in the Nigerian business, what is the minimum amount of profit it must make to achieve the recommended ROI?

Correct A. ₦750,000

B. ₦750,000

C. ₦750,000

D. ₦750,000

Correct Answer: A

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Question 16

In a perfectly competitive market, the law of diminishing marginal utility implies that as the quantity of a good increases, the marginal utility of each additional unit

Correct A. decreases

B. remains constant

C. increases

D. becomes negative

Correct Answer: A

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Question 17

A sole trader's business is not a separate legal entity from its owner. What is the implication of this for the sole trader's liability?

A. The sole trader's liability is limited to the business's assets

Correct B. The sole trader's liability is unlimited

C. The sole trader's liability is limited to the business's debts

D. The sole trader's liability is limited to the business's profits

Correct Answer: B

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Question 18

A company's articles of association may provide for the appointment of a managing director. What is the role of the managing director?

A. To manage the company's day-to-day operations

Correct B. To make strategic decisions on behalf of the company

C. To represent the company in legal matters

D. To oversee the company's financial affairs

Correct Answer: B

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Question 19

A bank's cash reserve ratio is 20%. If the bank has a cash reserve of ₦1,000,000, what is the maximum amount of loans it can make?

Correct A. ₦4,000,000

B. ₦5,000,000

C. ₦6,000,000

D. ₦7,000,000

Correct Answer: A

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Question 20

A warehouse's inventory turnover ratio is 6 times per year. If the average inventory value is ₦500,000, what is the total value of inventory sold in a year?

A. ₦3,000,000

B. ₦3,500,000

Correct C. ₦4,000,000

D. ₦4,500,000

Correct Answer: C

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Question 21

A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases its labor input from 100 to 121 units, and its capital input from 100 to 121 units, by how much will the quantity produced increase?

A. 10%

B. 20%

Correct C. 30%

D. 40%

Correct Answer: C

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Question 22

A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300 respectively. If the consumer allocates ₦500 to good A, how much will be left for good B?

A. ₦200

Correct B. ₦300

C. ₦400

D. ₦500

Correct Answer: B

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Question 23

A firm's revenue function is given by R(x) = 2x^2 + 5x - 3, where x is the number of units sold. If the firm sells 10 units, what is its revenue?

A. ₦127

Correct B. ₦137

C. ₦147

D. ₦157

Correct Answer: B

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Question 24

A company has a production function Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases its labor input from 100 to 121 units, and its capital input from 100 to 121 units, by how much will the quantity produced increase?

A. 10%

B. 20%

Correct C. 30%

D. 40%

Correct Answer: C

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Question 25

A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300 respectively. If the consumer allocates ₦500 to good A, how much will be left for good B?

A. ₦200

Correct B. ₦300

C. ₦400

D. ₦500

Correct Answer: B

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