POST UTME BABCOCK UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a production capacity of 10,000 units per day. If the company operates for 20 days in a month, what is the total production for the month?
A. 200,000 units
B. 250,000 units
C. 300,000 units
D. 350,000 units
Question 2
A company is considering two marketing strategies: Strategy A, which involves a 10% increase in advertising expenditure, and Strategy B, which involves a 20% increase in sales force. If the company's current sales are 100,000 and the marginal revenue is 50, what is the expected increase in sales under Strategy A?
A. 5,000
B. 10,000
C. 15,000
D. 20,000
Question 3
A firm is considering exporting its product to a foreign market. The firm's current price is 100 and the foreign market price is 120. If the firm's fixed costs are 10,000 and the variable costs are 20, what is the firm's expected profit from exporting?
A. 10,000
B. 20,000
C. 30,000
D. 40,000
Question 4
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). What is the implication of this on the business?
A. The business is not liable for any debts or obligations.
B. The business is not entitled to any tax reliefs.
C. The business is not required to file annual returns.
D. The business is not entitled to any government contracts.
Question 5
A sole trader has a business that generates an annual profit of ₦500,000. The sole trader's capital is ₦200,000, and the business has a turnover of ₦1,500,000. What is the sole trader's return on investment?
A. 25%
B. 30%
C. 35%
D. 40%
Question 6
A firm is considering two different marketing strategies for its product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. If the firm wants to maximize its profits, which strategy is more effective?
A. Strategy A
B. Strategy B
C. Both strategies are equally effective
D. Neither strategy is effective
Question 7
A consumer is considering the purchase of a product that has a price of ₦1,000. The consumer has a budget of ₦2,000 and is willing to spend up to 50% of their budget on the product. What is the maximum amount the consumer is willing to pay for the product?
A. ₦500
B. ₦750
C. ₦1,000
D. ₦1,250
Question 8
A firm imports goods from a foreign country. The cost of importing the goods is 10,000. The firm sells the goods at a price that includes a 20% markup over the cost price. If the firm sells 100 units of the goods, what is the total revenue generated from the sale of the goods?
A. 12,000
B. 14,000
C. 16,000
D. 18,000
Question 9
A company's Memorandum and Articles of Association are registered with the Corporate Affairs Commission (CAC). What is the legal implication of this?
A. The company is not liable for any business debts.
B. The company is not entitled to any business benefits.
C. The company is not required to file tax returns.
D. The company is protected by the Companies and Allied Matters Act (CAMA).
Question 10
A firm's cost function is given by C = 2L + 3K, where C is cost, L is labor, and K is capital. If the firm hires 5 units of labor and 10 units of capital, what is its total cost?
A. 50
B. 60
C. 70
D. 80
Question 11
A company is considering two different marketing strategies for its new product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. If the company expects to sell 1000 units of the product regardless of the marketing strategy, and it costs 1000 to implement Strategy A and 500 to implement Strategy B, which strategy should the company choose?
A. Strategy A
B. Strategy B
C. Both strategies are equally effective
D. Neither strategy is effective
Question 12
A consumer has a utility function given by U = 2X + 3Y, where X and Y are the quantities of two goods consumed. If the consumer's income is 100 and the prices of the two goods are 20 and 30, respectively, what is the consumer's optimal bundle of goods?
A. X = 2, Y = 3
B. X = 3, Y = 2
C. X = 4, Y = 1
D. X = 1, Y = 4
Question 13
In a perfectly competitive market, the law of supply and demand dictates that the equilibrium price and quantity of a good are determined by the intersection of the market supply and demand curves. However, this equilibrium is not always stable. What is the name of the phenomenon that occurs when a small change in the market causes a large and disproportionate change in the equilibrium price and quantity?
A. Giffen's Paradox
B. Ricardian Vice
C. Gresham's Law
D. Jevons' Paradox
Question 14
A company has two business units: Unit A and Unit B. Unit A has a profit of ₦300,000, while Unit B has a loss of ₦200,000. What is the overall profit or loss of the company?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 15
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). What is the legal implication of this?
A. The sole trader is not liable for any business debts.
B. The sole trader is not entitled to any business benefits.
C. The sole trader is not required to file tax returns.
D. The sole trader is not protected by the Companies and Allied Matters Act (CAMA).

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