UTME 2020 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 2020 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A distinguishing characteristic of a limited liability company is that
A. it is a collection of many sole proprietors
B. is a multiple partnership
C. has limited resources
Correct D. can sue and be sued

Correct Answer: D

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Question 2
Freight note is a document
Correct A. issued by a shipping company giving details of changes
B. used by government to transport goods from one country to another
C. used for payment for imported goods
D. given by an importer to pay for goods at a future period

Correct Answer: A

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Question 3
Which of the following are the components of commerce? I. trading and advertising II. warehousing and transportation III. packing and branding IV. Insurance and banking
A. I and II
B. I and II only
C. II, III and IV
Correct D. I, II and III

Correct Answer: D

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Question 4
Extractive industries may also be denominated as
A. direct industries
B. servicing industries
C. indirect industries
Correct D. primary industries

Correct Answer: D

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Question 5
A common requirement for public and private limited companies in Nigeria is that
A. a shareholder cannot transfer his shares to someone else without permission from other shareholders
B. shares cannot be offered for sale on the stock exchange
Correct C. their annual accounts are made available to the corporate affairs commission
D. shares can be offered for sale through an issuing house

Correct Answer: C

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Question 6
Mr. Olatunde took up a fire insurance on a property valued at N1000 and the amount insured is N800. The property caught fire causing a loss of N400. If the insurance was taken with the clause "with average", which is the amount to be paid by the insurance company?
A. N420
Correct B. N320
C. N460
D. N560

Correct Answer: B

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Question 7
One major characteristic of credit unions and thrift societies is that
Correct A. the contribution of every member depends on the member's ability
B. the legal processes involved in their formation are rigid
C. membership is compulsory to people in the same line of business
D. a minimum of ten people in the same line of business can form the union

Correct Answer: A

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Question 8
An author's exclusive right to his published and unpublished works is known as
A. constitutional right
B. author's right
Correct C. copyright
D. patent right

Correct Answer: C

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Question 9
The management function that makes the difference in intensity of behaviour is
A. controlling
Correct B. motivation
C. coordinating
D. planning

Correct Answer: B

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Question 10
Charges for loans, paid by commercial banks to the Central Bank of Nigeria are called
A. credit charges
B. interest rates
C. bank charges
Correct D. bank rates

Correct Answer: D

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Question 11
The difference between personal selling and sales promotion is that while sales promotion includes free gifts and samples, personal selling involves
Correct A. face-to-face communication with customers
B. distributing instructional posters
C. premium programming for customers
D. publishing promotional booklets

Correct Answer: A

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Question 12
One of the disadvantages of sole proprietorship is
A. limited liability
B. pride of ownership
Correct C. unlimited liability
D. secrecy of annual reports

Correct Answer: C

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Question 13
DIAGRAM - communication process diagram
Use the diagram below to answer questions 13 and 14
X represents
A. action
Correct B. receiver
C. transmission
D. ideation

Correct Answer: B

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Question 14
DIAGRAM - communication process diagram
Use the diagram below to answer questions 13 and 14 [See diagram]
In the communication process, Y represents
A. the encoder
B. the initiator
C. noise
Correct D. the medium

Correct Answer: D

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Question 15
One of the functions of the Nigeria Ports Authority is
A. the provision of carrier services to ensure speedy delivery
Correct B. facilities to enhance the speedy loading and offloading of cargoes
C. facilities to ensure that goods get to the destinations
D. shelter for operators of cargoes

Correct Answer: B

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Question 16
The scope of economic activities can be enlarged by
Correct A. transportation and trading
B. trading and aids to trade
C. business and its promotion
D. insurance and banking

Correct Answer: A

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Question 17
Given: I. shoe maker II. policemen III. fishermen IV. Gardener V. Broker. The persons engaged in primary occupation are
A. I, II and V
B. I, II and IV
C. III and V
Correct D. III and IV

Correct Answer: D

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Question 18
Ships used for international transport are
Correct A. oceanliners
B. yachts
C. launchers
D. trawlers

Correct Answer: A

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Question 19
The process of eliminating a virus from a computer is the
A. programming
B. formatting
C. looping
Correct D. debugging

Correct Answer: D

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Question 20
A customer with ‘ABC Plc' sent money through his account to his sister's account in another branch. This is an example of
A. e-business
B. e-commerce
Correct C. e-banking
D. e-finance

Correct Answer: C

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Question 21
One of the merits of television as a medium of advertising is that it
A. is prone to censorship
B. is relatively cheap
C. has more network coverage
Correct D. has more sensory stimulation

Correct Answer: D

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Question 22
The central working system of a computer used for data processing is the
A. monitor
B. floppy disk drive
C. hard drive
Correct D. memory unit

Correct Answer: D

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Question 23
An example of a computer operating system is
A. the PageMaker
Correct B. Windows 2000
C. Microsoft Word 2000
D. The Word Perfect

Correct Answer: B

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Question 24
The arrangement and interrelationship of the various components and positions of a business is referred to as
A. line structure
B. unity of direction
Correct C. organisational structure
D. clarity of objective

Correct Answer: C

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Question 25
Given: Opening Stock = ₦1,800, Purchases = ₦2,800, Sales = ₦8,000, Closing Stock = ₦350, Carriage on sales = ₦500. Calculate the value of the unused stock.
A. ₦800
B. ₦500
C. ₦320
Correct D. ₦350

Correct Answer: D

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