POST UTME ABU 2019 Commerce | Objective

Are you preparing for POST UTME ABU 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
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,500,000, and the total cost of the ending inventory is ₦1,200,000. If the company uses a perpetual inventory system, what is the cost of goods sold?
A. ₦300,000
Correct B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A sole trader named Olamide has a business income of ₦2,000,000 and a business expense of ₦800,000. What is Olamide's business profit?
Correct A. ₦1,200,000
B. ₦1,200,000
C. ₦1,200,000
D. ₦1,200,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A company has a total of ₦5,000,000 in assets and ₦2,000,000 in liabilities. What is the company's equity?
Correct A. ₦3,000,000
B. ₦3,000,000
C. ₦3,000,000
D. ₦3,000,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company uses the FIFO method to value its inventory. The cost of goods available for sale is ₦1,500,000, and the total cost of the ending inventory is ₦1,200,000. If the company uses a periodic inventory system, what is the cost of goods sold?
A. ₦300,000
Correct B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company has a total of ₦5,000,000 in assets and ₦2,000,000 in liabilities. What is the company's debt-to-equity ratio?
A. 1:1
Correct B. 1:2
C. 2:1
D. 3:1

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
The following diagram shows a demand curve for a product. If the price elasticity of demand is -2, what is the percentage change in quantity demanded if the price increases by 10%?
Correct A. 20%
B. 40%
C. 60%
D. 80%

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A company has a market share of 30% in a competitive market. If the market size is 100,000 units, what is the company's revenue if the price per unit is 10?
A. ₦3,000,000
B. ₦3,500,000
Correct C. ₦4,000,000
D. ₦4,500,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A consumer has a budget of 100 to spend on two goods, X and Y. The price of good X is 20 and the price of good Y is 30. If the consumer spends 60% of the budget on good X, how much is spent on good Y?
A. 20
B. 30
C. 40
Correct D. 50

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A firm has a cost function of C(x) = 2x^2 + 10x + 5, where x is the number of units produced. If the firm produces 20 units, what is the total cost?
A. ₦1,500
B. ₦2,000
C. ₦2,500
Correct D. ₦3,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A consumer has a utility function of U(x, y) = 2x + 3y, where x and y are the quantities of two goods. If the consumer has a budget of 100 and the prices of the goods are 20 and 30 respectively, what is the optimal bundle of goods?
A. (5, 5)
Correct B. (10, 10)
C. (15, 15)
D. (20, 20)

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A sole trader's business is considered a separate legal entity from its owner. Which of the following is a characteristic of a sole trader's business?
A. Unlimited liability
Correct B. Separate legal entity
C. No liability
D. No tax benefits

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A company's Memorandum of Association (MOA) is a document that outlines the company's
A. Business objectives
B. Share capital structure
C. Directors' powers and duties
Correct D. All of the above

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A company's Articles of Association (AOA) is a document that outlines the company's
A. Share capital structure
B. Directors' powers and duties
C. Management structure
Correct D. All of the above

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A company's Memorandum of Association (MOA) and Articles of Association (AOA) together form the company's
A. Constitution
B. Bylaws
C. Rules and regulations
Correct D. All of the above

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A company's Memorandum of Association (MOA) is a document that outlines the company's
A. Business objectives
B. Share capital structure
C. Directors' powers and duties
Correct D. All of the above

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
The concept of 'agency' in consumer protection law refers to the ability of a consumer to act on their own behalf in a transaction. Which of the following best describes the implications of this concept?
A. Increased responsibility for the consumer in case of a dispute
B. Reduced liability for the seller in case of a dispute
Correct C. Greater protection for the consumer from unfair business practices
D. No impact on the consumer's rights and responsibilities

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A sole trader is a type of business organization that is owned and operated by one individual. What are the advantages of this type of business organization?
A. Easy to set up and manage
B. Limited liability for the owner
C. Flexibility in decision-making
Correct D. All of the above

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A company is a type of business organization that is owned and operated by shareholders. What are the characteristics of a company?
A. Limited liability for the shareholders
B. Flexibility in decision-making
C. Separation of ownership and management
Correct D. All of the above

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A warehouse is a type of storage facility used to store goods and materials. What are the benefits of using a warehouse?
A. Reduced storage costs
B. Improved inventory management
C. Increased security for stored goods
Correct D. All of the above

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A stock control system is a type of inventory management system used to track and manage inventory levels. What are the benefits of using a stock control system?
A. Improved inventory accuracy
B. Reduced stockouts and overstocking
C. Increased efficiency in inventory management
Correct D. All of the above

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A company's production function is given by Q = 2L^(1/2)K^(1/2), 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 4 to 9 units, and its capital input from 16 to 25 units, by how many percentage points will its quantity produced increase?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue function is MR = 200 - 4Q, what is the price elasticity of demand at a quantity of 40 units?
A. 0.5
B. 1.0
Correct C. 1.5
D. 2.0

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A bank's balance sheet is given by Assets = Liabilities + Equity. If the bank's assets increase by 10% and its liabilities increase by 5%, what is the percentage increase in its equity?
A. 2.5%
B. 5.0%
Correct C. 7.5%
D. 10.0%

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A company's cost function is given by C = 2Q^2 + 10Q, where C is the total cost and Q is the quantity produced. If the company produces 10 units, what is its total cost?
A. 120
B. 150
Correct C. 180
D. 210

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A firm's revenue function is given by R = 100Q - 2Q^2, where R is the total revenue and Q is the quantity sold. If the firm sells 20 units, what is its total revenue?
A. 1,600
B. 1,800
Correct C. 2,000
D. 2,200

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support