POST UTME ACHIEVERS UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's insurance policy covers losses due to natural disasters. The policy has a deductible of ₦100,000. If the company suffers a loss of ₦500,000 due to a natural disaster, what is the amount that the insurance company will pay?
A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦700,000
Question 2
A consumer has a budget constraint of 100 units of currency, and the prices of two goods, X and Y, are 5 units and 10 units, respectively. The consumer's indifference curve is given by the equation UX + 2UY = 20. What is the consumer's optimal consumption bundle?
A. X = 20, Y = 10
B. X = 15, Y = 5
C. X = 10, Y = 10
D. X = 5, Y = 20
Question 3
A marketing campaign aims to increase brand awareness and drive sales. What is the primary goal of this campaign?
A. To reduce production costs
B. To increase market share
C. To improve customer satisfaction
D. To increase brand awareness and drive sales
Question 4
A company's insurance policy has a deductible of ₦100,000. If the company suffers a loss of ₦500,000, what amount will the insurance company pay?
A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦700,000
Question 5
A firm has a warehouse with a capacity of 10,000 units. If it receives a shipment of 5,000 units and then sells 2,000 units, what is the new stock level?
A. 7,000
B. 8,000
C. 9,000
D. 10,000
Question 6
A company's warehouse has a capacity of 10,000 square meters. If the company stores goods worth ₦5,000,000, what is the storage cost per square meter?
A. ₦500
B. ₦1,000
C. ₦2,000
D. ₦5,000
Question 7
A firm's production function is given by the equation ( Q = 2L^{ rac{1}{2}}K^{ rac{1}{3}} ). If the firm's output is 64 units and the capital stock is 27 units, what is the value of labor (L)?
A. 9
B. 12
C. 16
D. 20
Question 8
A bank's primary function is to act as a financial intermediary between savers and borrowers. What is the main advantage of this function?
A. To provide liquidity to borrowers
B. To reduce the risk of lending
C. To increase the efficiency of financial transactions
D. To provide a safe and stable financial system
Question 9
A company's articles of association state that the company's shares can be transferred only with the consent of the board of directors. What type of share is this?
A. Ordinary share
B. Preference share
C. Redeemable share
D. Restricted share
Question 10
A consumer has a budget constraint of 100 units of currency, and the prices of two goods, X and Y, are 5 units and 10 units, respectively. The consumer's indifference curve is given by the equation UX + 2UY = 20. What is the consumer's optimal consumption bundle?
A. X = 20, Y = 10
B. X = 15, Y = 5
C. X = 10, Y = 10
D. X = 5, Y = 20
Question 11
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is NOT a characteristic of a successful marketing strategy?
A. It must be consistent with the company's overall business objectives.
B. It must be tailored to the specific needs of the target market.
C. It must be based on a thorough understanding of the company's competitors.
D. It must be implemented without any budget constraints.
Question 12
A consumer protection agency has received a complaint about a company's unfair business practices. The agency's investigation reveals that the company has engaged in false advertising, which has caused financial losses to several consumers. What is the most appropriate course of action for the agency?
A. Issue a warning to the company and require it to cease the unfair business practice.
B. Impose a fine on the company and order it to compensate the affected consumers.
C. Refer the matter to the relevant regulatory authority for further action.
D. Dismiss the complaint as frivolous.
Question 13
A company uses the First-In-First-Out (FIFO) inventory method. If it has 100 units of stock and sells 20 units, what is the new stock level?
A. 80
B. 90
C. 100
D. 110
Question 14
A warehouse's primary function is to store and manage inventory. What is the main advantage of this function?
A. To reduce storage costs
B. To improve inventory management
C. To increase the efficiency of order fulfillment
D. To reduce the risk of stockouts
Question 15
A firm specializes in producing two goods, X and Y, using two inputs, labor (L) and capital (K). The production function for good X is given by QX = 2L^0.5K^0.5, while the production function for good Y is given by QY = 3L^0.25K^0.75. If the firm has 100 units of labor and 50 units of capital, what is the opportunity cost of producing one more unit of good X?
A. 0.5 units of Y
B. 1 unit of Y
C. 1.5 units of Y
D. 2 units of Y

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