POST UTME BABCOCK UNIVERSITY 2022 Commerce | Objective

Are you preparing for POST UTME BABCOCK UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2022 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). What is the implication of this on the sole trader's business?
A. The sole trader's business is not liable to pay taxes.
B. The sole trader's business is not entitled to issue receipts.
C. The sole trader's business is not required to keep financial records.
Correct D. The sole trader's business is not protected by law.

Correct Answer: D

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Question 2
A company has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. If the company issues 20,000 shares to the public, what is the amount of money received from the public?
A. ₦200,000
B. ₦400,000
Correct C. ₦600,000
D. ₦800,000

Correct Answer: C

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Question 3
A marketing manager wants to promote a new product using a combination of advertising and sales promotion. Which of the following is a suitable advertising strategy?
A. Television advertising
B. Print advertising
C. Digital advertising
Correct D. All of the above

Correct Answer: D

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Question 4
A company exports goods worth ₦500,000 to a foreign country. If the exchange rate is 1 USD = ₦200, what is the value of the goods in USD?
A. ₦1,000,000
Correct B. ₦2,000,000
C. ₦500,000
D. ₦1,500,000

Correct Answer: B

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Question 5
A warehouse has a storage capacity of 10,000 square meters. If the warehouse is currently occupied by 5,000 square meters of goods, what is the percentage of the warehouse that is occupied?
A. 25%
Correct B. 50%
C. 75%
D. 90%

Correct Answer: B

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Question 6
The concept of 'caveat emptor' in consumer protection law implies that the buyer must be aware of the product's characteristics and defects before making a purchase. Which of the following is a correct interpretation of this principle?
A. The seller has no liability for defects in the product.
B. The buyer must inspect the product before purchasing.
Correct C. The buyer assumes all risk for the product's quality.
D. The seller must disclose all product information to the buyer.

Correct Answer: C

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Question 7
A company has a policy of paying its employees a 10% bonus on their annual salary. If an employee earns ₦1,200,000 per year, what is the total amount the employee will receive, including the bonus?
Correct A. ₦1,320,000
B. ₦1,320,000
C. ₦1,320,000
D. ₦1,320,000

Correct Answer: A

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Question 8
A firm has a 20% markup on its products. If a product costs ₦5,000 to produce, what is the selling price?
Correct A. ₦6,000
B. ₦6,000
C. ₦6,000
D. ₦6,000

Correct Answer: A

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Question 9
A company has a policy of paying its employees a 10% bonus on their annual salary. If an employee earns ₦1,200,000 per year, what is the total amount the employee will receive, including the bonus?
Correct A. ₦1,320,000
B. ₦1,320,000
C. ₦1,320,000
D. ₦1,320,000

Correct Answer: A

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Question 10
A firm has a 20% markup on its products. If a product costs ₦5,000 to produce, what is the selling price?
Correct A. ₦6,000
B. ₦6,000
C. ₦6,000
D. ₦6,000

Correct Answer: A

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Question 11
A firm specializes in producing a single product, which is a type of commodity. The commodity is characterized by its homogeneity and perfect substitutability. What is the name of this type of commodity?
Correct A. Standardized commodity
B. Specialized commodity
C. Homogeneous commodity
D. Perfectly substitutable commodity

Correct Answer: A

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Question 12
A consumer purchases a product from a retailer, but the product does not meet the consumer's expectations. The consumer seeks redress through a legal channel. What type of law governs this situation?
A. Contract law
B. Tort law
C. Property law
Correct D. Consumer protection law

Correct Answer: D

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Question 13
A bank offers a loan to a customer at an interest rate of 12% per annum. The loan is repayable in 5 years. What is the present value of the loan?
Correct A. ₦10,000
B. ₦12,000
C. ₦15,000
D. ₦18,000

Correct Answer: A

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Question 14
A firm exports goods to a foreign country. The firm uses the services of a freight forwarder to clear the goods through customs. What type of trade is this?
A. Import trade
B. Export trade
C. Domestic trade
Correct D. International trade

Correct Answer: D

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Question 15
A consumer purchases a product from a retailer, but the product is defective. The consumer seeks redress through a legal channel. What type of law governs this situation?
A. Contract law
B. Tort law
C. Property law
Correct D. Consumer protection law

Correct Answer: D

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Question 16
A company is considering exporting its products to a foreign market. Which of the following is a key consideration in the decision-making process?
A. Market size and growth potential
B. Competitor analysis
Correct C. Trade agreements and regulations
D. Transportation costs

Correct Answer: C

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Question 17
A warehouse is using a first-in-first-out (FIFO) inventory system. If the oldest item in the warehouse has a value of ₦1500 and the next oldest item has a value of ₦1200, what is the total value of the oldest 5 items?
A. ₦7500
Correct B. ₦8000
C. ₦8500
D. ₦9000

Correct Answer: B

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Question 18
A company is launching a new product and wants to create a marketing campaign that will appeal to its target audience. Which of the following marketing strategies is most likely to be effective?
A. Social media advertising
B. Influencer marketing
Correct C. Content marketing
D. Event marketing

Correct Answer: C

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Question 19
A consumer is considering purchasing a product that has a 2-year warranty. If the product costs ₦20000 and the warranty costs ₦5000, what is the total cost of the product and warranty?
Correct A. ₦25000
B. ₦25050
C. ₦25000
D. ₦25000

Correct Answer: A

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Question 20
A bank is considering offering a new loan product to its customers. Which of the following is a key consideration in the decision-making process?
A. Interest rates and fees
Correct B. Creditworthiness and risk assessment
C. Market demand and competition
D. Regulatory requirements

Correct Answer: B

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Question 21
In a sole proprietorship business, the owner's personal assets are not protected from business liabilities. What is the correct term for this type of business?
Correct A. Sole Proprietorship
B. Partnership
C. Limited Liability Company
D. Corporation

Correct Answer: A

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Question 22
A company has a policy of paying its employees a 10% bonus on their annual salaries. If an employee's salary is ₦500,000, what is the bonus amount?
Correct A. ₦50,000
B. ₦45,000
C. ₦55,000
D. ₦60,000

Correct Answer: A

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Question 23
A consumer protection law requires that all goods sold in a market must have a label indicating the date of manufacture. What is the purpose of this label?
A. To ensure quality control
B. To prevent counterfeiting
Correct C. To inform consumers of the product's shelf life
D. To promote the product's brand

Correct Answer: C

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Question 24
A company's marketing strategy involves creating a viral video that showcases its product. What type of marketing is this?
Correct A. Social Media Marketing
B. Content Marketing
C. Influencer Marketing
D. Event Marketing

Correct Answer: A

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Question 25
A risk management strategy involves diversifying investments to minimize losses. What is the term for this type of investment?
A. Hedging
Correct B. Diversification
C. Speculation
D. Arbitrage

Correct Answer: B

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