UTME 2019 Commerce | Objective

Are you preparing for UTME exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
The use of computers in modern banking industry is a reflection of
Correct A. technological development
B. economic development
C. competitive development
D. scientific development

Correct Answer: A

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Question 2
NACCIOMA stands for
A. Nigerian-American Centre for Culture, Industries, Mines and Arts
Correct B. Nigerian Association of Chambers of Commerce, Industries, Mines and Agriculture
C. Nigerian Association for Culture, Civics, Industries, Mines and Arts
D. National Agency for Culture, Civilization, Investments, Manufacturing and Agriculture

Correct Answer: B

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Question 3
Motivation is an essential element in management because it
A. helps to eliminate industrial disharmony
B. leads to the improvement of staff welfare
Correct C. encourages individuals to work towards achieving the organization's objectives
D. reduces friction among employees in the process of achieving the organization's objectives

Correct Answer: C

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Question 4
The direct authority of a superior over his subordinate is known as
Correct A. line authority
B. line and staff authority
C. staff authority
D. lame authority

Correct Answer: A

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Question 5
A minor is not permitted to enter into a valid contract because he
Correct A. is young in the eye of the law
B. may not be able to write the contract
C. cannot pay the consideration
D. is too young to interpret the law

Correct Answer: A

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Question 6
A person who is cheated in a business transaction can seek legal remedy
Correct A. regardless of the form of business organization
B. only if the transaction is documented in a contract
C. even if the agreement is verbal and the amount involved is large
D. only if the business is a sole proprietorship whose owner is known

Correct Answer: A

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Question 7
Which of the following documents permits an importer to inspect his goods before the arrival of the bill of lading?
A. Import invoice
B. Bill of exchange
Correct C. Bill of sight
D. Consular invoice

Correct Answer: C

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Question 8
The overriding advantage of home trade over foreign trade is
A. ease in language of transaction
B. absence of many documents
Correct C. accessibility of seller to buyer
D. ease in form of payment

Correct Answer: C

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Question 9
The function of a merchant wholesaler is to
A. find markets for producers' finished goods
B. bring buyers and sellers together
C. buy in bulk, store and sell to retailers as desired
Correct D. possess title to the goods, store and sell to retailers

Correct Answer: D

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Question 10
An invoice can be described as a
Correct A. document specifying quantity, description, prices and total value of purchases
B. receipt containing necessary information about the goods
C. letter specifying the contractual sales of goods between two parties
D. contractual agreement for the sale of goods

Correct Answer: A

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Question 11
Departmentalization is an aspect of
A. planning
B. controlling
Correct C. organizing
D. planning

Correct Answer: C

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Question 12
A functional organizational structure is where
A. activities of similar nature are grouped together
B. staff performing the same functions are grouped together
C. departments performing similar functions are grouped together
Correct D. staff performing similar functions are grouped together

Correct Answer: D

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Question 13
The mode of transporting crude oil to the ports for export purposes is by
A. road
Correct B. pipeline
C. tanker
D. rail

Correct Answer: B

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Question 14
The temporary insurance certificate issued to the insured before drawing up a policy is a
A. testimonial
Correct B. cover note
C. time policy
D. proposal form

Correct Answer: B

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Question 15
A type of long-term loan granted to companies with fixed interest as well as with redeemable and irredeemable features is referred to as
A. an overdraft
B. a term loan
Correct C. a debenture
D. a bond

Correct Answer: C

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Question 16
Public debt management is one of the functions of
A. Development bank
B. Merchant bank
Correct C. Central bank
D. Commercial bank

Correct Answer: C

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Question 17
The strategy adopted by a firm that ceases to operate one or more locations because of inactivity is
A. focus
B. diversification
C. rejuvenation
Correct D. consolidation

Correct Answer: D

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Question 18
A written partnership contract is known as
Correct A. a deed
B. an invoice
C. a proposal
D. a prospectus

Correct Answer: A

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Question 19
To increase the purchasing power of money in a country, the central bank has to
A. call on special deposits
B. raise cash ratio
C. reduce cash ratio
Correct D. sell securities in the open market

Correct Answer: D

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Question 20
A good financial instrument which serves as a hedge against inflation is
A. a warrant
B. a bond
Correct C. a share
D. an option

Correct Answer: C

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Question 21
The major types of warehouses are
Correct A. bonded, public, coldroom and private
B. manufacturer, bonded, departmental and private
C. wholesaler, manufacturer, public and bonded
D. manufacturer, bonded, public and departmental

Correct Answer: A

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Question 22
The Customs and Excise Department is responsible for the collection of
A. royalties
B. taxes
Correct C. tariffs
D. charges

Correct Answer: C

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Question 23
Which of the following requires payment into the payee's account?
A. Certified cheque
B. Traveller's cheque
Correct C. Crossed cheque
D. Open cheque

Correct Answer: C

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Question 24
The traditional way of paying cooperative dividend is to distribute profit in proportion to members'
Correct A. contributions
B. total savings
C. subscriptions
D. volume of purchases

Correct Answer: A

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Question 25
The practice whereby government relinquishes its ownership interest in a public enterprise is known as
A. nationalization
Correct B. privatization
C. commercialization
D. indigenization

Correct Answer: B

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