POST UTME AAUA 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses a just-in-time inventory system. If the lead time is 5 days, and the daily demand is 100 units, what is the maximum inventory level?
A. 500 units
B. 750 units
C. 1000 units
D. 1250 units
Question 2
In a sole proprietorship, the owner's personal assets are
A. liable for business debts
B. not liable for business debts
C. liable for business profits
D. not liable for business losses
Question 3
A company has two warehouses, A and B. Warehouse A has 200 units of a product, while Warehouse B has 300 units. If 50 units are transferred from Warehouse A to Warehouse B, what is the new ratio of units in Warehouse A to units in Warehouse B?
A. 1:1
B. 1:2
C. 2:3
D. 3:4
Question 4
A firm's home and foreign trade activities involve the importation and exportation of goods. Which of the following is a key consideration in determining the most suitable mode of transportation?
A. Distance and time
B. Cost and reliability
C. Security and customs clearance
D. Environmental impact
Question 5
A company's financial statements show a net income of ₦2,000,000, but the cash flow statement reveals a net decrease of ₦1,000,000. What is the reason for this discrepancy?
A. The company has a high level of accounts receivable.
B. The company has a high level of accounts payable.
C. The company has a high level of inventory.
D. The company has a high level of depreciation.
Question 6
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a requirement for registration?
A. Obtain a Tax Identification Number (TIN)
B. Register with the Corporate Affairs Commission (CAC)
C. Obtain a Business Name Certificate
D. Obtain a Patent for the business name
Question 7
A firm is considering two different production processes: one that requires an initial investment of ₦10000 and another that requires an initial investment of ₦20000. If the firm expects to produce 100 units of output per year for 5 years, what is the present value of the expected cash flows from each process?
A. ₦50000
B. ₦60000
C. ₦70000
D. ₦80000
Question 8
Determine the total revenue generated by a company that sells 500 units of a product at ₦250 each, and incurs a fixed cost of ₦150,000, and a variable cost of ₦120 per unit.
A. ₦120,000
B. ₦150,000
C. ₦175,000
D. ₦200,000
Question 9
The primary purpose of a limited liability company is to
A. limit the liability of its owners
B. increase the liability of its owners
C. provide tax benefits to its owners
D. provide management benefits to its owners
Question 10
A firm's revenue function is given by R(x) = 2x^2 + 10x, where x is the number of units sold. If the firm sells 5 units, what is its profit?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 11
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 units to 121 units, and its capital input from 100 units to 121 units, by how much will the quantity produced increase?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 12
A firm's warehousing and stock control system involves the use of barcodes, RFID tags, and inventory management software. Which of the following is a benefit of using RFID tags?
A. Improved inventory accuracy
B. Enhanced security features
C. Increased storage capacity
D. Reduced labor costs
Question 13
A company is considering exporting its products to a foreign market. What is the first step in the export process?
A. Conducting market research
B. Obtaining necessary licenses and permits
C. Establishing a distribution network
D. Negotiating with potential buyers
Question 14
A consumer protection agency is investigating a complaint about a company's advertising practices. The company claims that its ads are 'substantially truthful' but the agency argues that they are 'misleading'. Which of the following is a key difference between these two claims?
A. Truthfulness vs. accuracy
B. Intent vs. effect
C. Substantially truthful vs. misleading
D. Commercial speech vs. non-commercial speech
Question 15
A cargo insurance policy that covers the risk of loss or damage to goods during transit is
A. all-risk policy
B. named-perils policy
C. open-perils policy
D. transit policy

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