UTME Commerce Questions And Answers
Here are 20 UTME (Unified Tertiary Matriculation Examination) commerce questions with options and the correct answers indicated:
Which of the following is not a factor of production?
a) Land
b) Labor
c) Capital
d) Profit
Correct answer: d) Profit
The process of converting raw materials into finished goods is known as:
a) Marketing
b) Production
c) Distribution
d) Consumption
Correct answer: b) Production
A situation where a single seller dominates the market and controls the price is called:
a) Oligopoly
b) Monopoly
c) Perfect competition
d) Monopolistic competition
Correct answer: b) Monopoly
A document that contains an offer to buy or sell a product at a specified price is called:
a) Invoice
b) Quotation
c) Receipt
d) Voucher
Correct answer: b) Quotation
The primary objective of a retailer is to:
a) Manufacture goods
b) Buy goods in bulk
c) Sell goods to consumers
d) Provide services to consumers
Correct answer: c) Sell goods to consumers
The total value of goods and services produced within a country's borders in a specific period is known as:
a) GDP (Gross Domestic Product)
b) GNP (Gross National Product)
c) NNP (Net National Product)
d) GNI (Gross National Income)
Correct answer: a) GDP (Gross Domestic Product)
A market structure characterized by a large number of buyers and sellers is called:
a) Monopoly
b) Oligopoly
c) Perfect competition
d) Monopolistic competition
Correct answer: c) Perfect competition
The process of identifying and meeting customers' needs and wants is known as:
a) Production
b) Marketing
c) Distribution
d) Finance
Correct answer: b) Marketing
The financial statement that shows a company's revenues, expenses, and profits over a specific period is called:
a) Balance sheet
b) Income statement
c) Cash flow statement
d) Statement of retained earnings
Correct answer: b) Income statement
The risk associated with changes in government policies or regulations is known as:
a) Business risk
b) Financial risk
c) Economic risk
d) Political risk
Correct answer: d) Political risk
The process of moving goods from the manufacturer to the final consumer is called:
a) Distribution
b) Production
c) Marketing
d) Warehousing
Correct answer: a) Distribution
The price at which a willing buyer and a willing seller agree to transact is called:
a) Market price
b) Wholesale price
c) Retail price
d) Cost price
Correct answer: a) Market price
The process of determining the value of a product or service is known as:
a) Pricing
b) Promotion
c) Positioning
d) Packaging
Correct answer: a) Pricing
The stock exchange in Nigeria is called:
a) NASDAQ
b) NYSE
c) LSE
d) NSE
Correct answer: d) NSE (Nigerian Stock Exchange)
The process of gathering, analyzing, and interpreting data about a market is known as:
a) Advertising
b) Research
c) Selling
d) Promotion
Correct answer: b) Research
Which of the following is not a type of inflation?
a) Hyperinflation
b) Deflation
c) Stagflation
d) Reflation
Correct answer: d) Reflation
The process of dividing the market into distinct groups of buyers with different needs, characteristics, or behaviors is called:
a) Market segmentation
b) Market targeting
c) Market positioning
d) Market penetration
Correct answer: a) Market segmentation
The financial institution responsible for regulating and supervising banks in Nigeria is called:
a) CBN (Central Bank of Nigeria)
b) SEC (Securities and Exchange Commission)
c) NSE (Nigerian Stock Exchange)
d) FIRS (Federal Inland Revenue Service)
Correct answer: a) CBN (Central Bank of Nigeria)
The practice of selling goods below cost to drive competitors out of the market is known as:
a) Dumping
b) Cartel
c) Price fixing
d) Predatory pricing
Correct answer: d) Predatory pricing
The financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time is called:
a) Balance sheet
b) Income statement
c) Cash flow statement
d) Statement of retained earnings
Correct answer: a) Balance sheet.
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