UI Post-UTME Commerce 2025 (Model questions) past questions and answers

The functions of a wholesaler in the chain of distribution include:
I. Breaking bulk from manufacturers
II. Providing storage facilities
III. Directly retailing to consumers
IV. Extending credit to retailers

1. A.I, II and IV only
2. B.I and III only
3. C.II, III and IV only
4. D.All of the above

The following documents are used BEFORE a transaction is completed:
I. Quotation
II. Purchase order
III. Proforma invoice
IV. Credit note

1. A.I and III only
2. B.II and IV only
3. C.I, II and III only
4. D.All of the above

Which of the following are true about limited liability companies?
I. They have a separate legal identity from their owners
II. Members' liability is limited to their paid-up shares
III. They cannot own property in their own name
IV. They have perpetual succession

1. A.I and III only
2. B.I, II and IV only
3. C.II and III only
4. D.All of the above

The principle of indemnity in insurance means that:
I. The insured is restored to the same financial position as before the loss
II. The insurer can recover part of the loss from other insurers
III. The insured cannot make a profit from an insurance claim
IV. All material facts must be disclosed to the insurer

1. A.I, II and III only
2. B.I and III only
3. C.II and IV only
4. D.All of the above

Which of the following are advantages of e-commerce?
I. Lower overhead costs for businesses
II. 24-hour accessibility for customers
III. Eliminates all cyber security risks
IV. Wider market reach

1. A.I and III only
2. B.I, II and IV only
3. C.II, III and IV only
4. D.All of the above

A bill of lading serves as:
I. A contract of carriage between shipper and carrier
II. A receipt for goods shipped
III. Evidence of title to the goods
IV. A document of payment guarantee

1. A.I and IV only
2. B.II and III only
3. C.I, II and III only
4. D.All of the above

The factors that determine the channel of distribution chosen by a manufacturer include:
I. Nature of the product
II. Target market size and location
III. Availability of middlemen
IV. Government trade restrictions only

1. A.I, II and III only
2. B.I and IV only
3. C.II, III and IV only
4. D.All of the above

In international trade, a country's terms of trade IMPROVE when:
I. Export prices rise faster than import prices
II. Import prices fall relative to export prices
III. The volume of exports increases
IV. The price index of exports increases relative to that of imports

1. A.I, II and IV only
2. B.I and III only
3. C.II and III only
4. D.All of the above

The features of a cooperative society include:
I. Democratic control — one member, one vote
II. Open and voluntary membership
III. Distribution of surplus to members in proportion to transactions
IV. Primary objective of maximising profit for shareholders

1. A.I, II and III only
2. B.II and IV only
3. C.I and IV only
4. D.All of the above

Which of the following are functions of commercial banks?
I. Accepting deposits and granting loans
II. Issuing currency notes
III. Facilitating domestic and international payments
IV. Providing agency services

1. A.I and II only
2. B.I, III and IV only
3. C.II and III only
4. D.All of the above

The following information relates to Segun Traders for the month of March: Opening cash balance: ₦25,000 Cash sales: ₦120,000 Cash purchases: ₦75,000 Salaries paid: ₦18,000 Rent received: ₦6,000 Drawings: ₦10,000. Which of the following are TRUE?
I. Total receipts during March = ₦126,000
II. Total payments during March = ₦103,000
III. Closing cash balance = ₦48,000
IV. Net cash flow from operations = ₦33,000

1. A.I, II and III only
2. B.I and III only
3. C.II and IV only
4. D.All of the above

The following are related to the Memorandum of Association of a company:
I. It defines the company's relationship with the outside world
II. It contains the objects clause which states the company's purpose
III. It regulates the internal management of the company
IV. It must state the authorised share capital for a limited company

1. A.I, II and IV only
2. B.I and III only
3. C.II and III only
4. D.All of the above

In a hire purchase agreement:
I. Ownership passes to the buyer on payment of the final instalment
II. The buyer can use the goods immediately
III. The seller can repossess goods if instalments are not paid
IV. The goods become the buyer's property from the first payment

1. A.I and IV only
2. B.I, II and III only
3. C.II and IV only
4. D.All of the above

A supermarket uses the following pricing strategies: I. Loss leader pricing on staple foods II. Psychological pricing (e.g., ₦999 instead of ₦1,000) III. Cost-plus pricing for most products IV. Penetration pricing for new product lines. Which of the following are CORRECT about these strategies?
I. Loss leader reduces margin on that product but may increase overall store revenue
II. Psychological pricing exploits consumer perception
III. Cost-plus is the most customer-orientated pricing method
IV. Penetration pricing involves setting a high initial price

1. A.I, II and III only
2. B.I and II only
3. C.III and IV only
4. D.All of the above

The following are methods of promoting international trade:
I. Free trade areas and customs unions
II. World Trade Organisation (WTO) agreements
III. Import quotas and tariffs
IV. Bilateral trade agreements

1. A.I, II and IV only
2. B.I and III only
3. C.II, III and IV only
4. D.All of the above

The following statements relate to the Stock Exchange:
I. It provides a secondary market for existing securities
II. Companies raise fresh capital directly on the stock exchange
III. Share prices are determined by supply and demand forces
IV. It provides a mechanism for price discovery

1. A.I and II only
2. B.II and III only
3. C.I, III and IV only
4. D.All of the above

An entrepreneur setting up a new business should consider:
I. The nature of the product or service to offer
II. Sources of finance available
III. Market research and feasibility studies
IV. Only the potential profit, ignoring risks

1. A.I and IV only
2. B.I, II and III only
3. C.II, III and IV only
4. D.All of the above

Which of the following are functions of the Central Bank in Nigeria?
I. Banker and lender of last resort to commercial banks
II. Custodian of the country's external reserves
III. Opening current accounts for the general public
IV. Implementation of monetary policy

1. A.I, II and IV only
2. B.I and III only
3. C.II, III and IV only
4. D.All of the above

A trader buys goods for ₦240,000, incurs freight charges of ₦12,000, and sells at a mark-up of 33⅓% on cost. Which of the following are CORRECT?
I. Total cost of goods = ₦252,000
II. Selling price = ₦336,000
III. Gross profit = ₦84,000
IV. Gross profit margin on sales = 25%

1. A.I, III and IV only
2. B.I and II only
3. C.II and IV only
4. D.All of the above

The following are associated with consumer protection in Nigeria:
I. Consumer Protection Council (CPC) was established to protect consumers
II. NAFDAC regulates food, drugs, and cosmetics
III. Standards Organisation of Nigeria (SON) sets product quality standards
IV. The Central Bank of Nigeria protects consumers from all product fraud

1. A.I and IV only
2. B.I, II and III only
3. C.II, III and IV only
4. D.All of the above

In computing the price of goods in foreign trade, the following terms are used:
I. FOB (Free on Board) — seller's price includes cost up to loading on ship
II. CIF — price includes cost, insurance, and freight to destination port
III. FAS — seller delivers goods alongside the vessel only
IV. EXW (Ex-Works) — seller bears all transport costs to the buyer's warehouse

1. A.I, II and III only
2. B.I and IV only
3. C.II and III only
4. D.All of the above

A manufacturer sells 2,000 units to a wholesaler at ₦150 each, subject to a 10% trade discount. The wholesaler adds a 20% mark-up and sells to a retailer. The retailer sells to consumers at a 25% mark-up on the retailer's cost. Which of the following are CORRECT?
I. Wholesaler's purchase price = ₦135 per unit
II. Retailer's purchase price = ₦162 per unit
III. Consumer's price = ₦202.50 per unit
IV. Total trade discount = ₦30,000

1. A.I, II, III and IV only
2. B.I and III only
3. C.II and IV only
4. D.All of the above

The following are types of retail outlets:
I. Supermarkets — self-service stores selling a wide range of consumer goods
II. Department stores — large stores divided into sections each selling different goods
III. Vending machines — require a salesperson to operate
IV. Mail order — goods ordered by post or online and delivered to the customer

1. A.I, II and IV only
2. B.I and III only
3. C.II, III and IV only
4. D.All of the above

The following are advantages of public limited companies (PLCs) over private limited companies:
I. Shares can be offered to the general public on the stock exchange
II. Greater ability to raise large amounts of capital
III. Less stringent disclosure and reporting requirements
IV. Perpetual succession continues regardless of ownership changes

1. A.I and II only
2. B.I, II and IV only
3. C.III and IV only
4. D.All of the above