POST UTME BELLS UNIVERSITY 2022 Commerce | Objective

Are you preparing for POST UTME BELLS 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.

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Question 1
In a sole trade business, what is the primary advantage of using a sole trader structure?
A. Limited liability
Correct B. Flexibility in decision-making
C. Easy to set up
D. No tax benefits

Correct Answer: B

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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 50,000 shares to the public at a premium of ₦5 per share, what is the total amount received from the public?
A. ₦500,000
B. ₦750,000
Correct C. ₦1,250,000
D. ₦1,500,000

Correct Answer: C

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Question 3
A consumer purchases a product with a recommended retail price of ₦5,000. If the product is sold at a discount of 10% and the consumer also receives a cashback of 5% of the purchase price, what is the amount the consumer pays?
Correct A. ₦4,250
B. ₦4,500
C. ₦4,750
D. ₦5,000

Correct Answer: A

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Question 4
A company has a fleet of 10 vehicles, each with an average annual insurance premium of ₦50,000. If the company also pays an additional ₦10,000 per vehicle for comprehensive insurance, what is the total annual insurance premium for the fleet?
A. ₦500,000
B. ₦550,000
Correct C. ₦600,000
D. ₦650,000

Correct Answer: C

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Question 5
A business owner wants to transport goods from Lagos to Abuja. If the distance between the two cities is 700 km and the business owner wants to transport the goods at a speed of 60 km/h, how many hours will it take to transport the goods?
A. 10 hours
B. 11 hours
Correct C. 12 hours
D. 13 hours

Correct Answer: C

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Question 6
In a perfectly competitive market, the law of supply states that the quantity of a good supplied is inversely related to the price of the good. If the price of a good increases by 10%, what is the percentage change in the quantity supplied?
A. 5%
Correct B. 10%
C. 15%
D. 20%

Correct Answer: B

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Question 7
A company is considering two different production processes for manufacturing a product. Process A requires an initial investment of ₦1,500,000 and has a variable cost of ₦500 per unit. Process B requires an initial investment of ₦2,000,000 and has a variable cost of ₦300 per unit. If the selling price of the product is ₦1,200 per unit, what is the break-even point for each process?
A. 1,000 units
Correct B. 1,500 units
C. 2,000 units
D. 2,500 units

Correct Answer: B

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Question 8
A firm is considering two different marketing strategies for promoting a new product. Strategy A involves a one-time advertising expenditure of ₦1,000,000, while Strategy B involves a monthly advertising expenditure of ₦100,000 for 10 months. If the firm expects to sell 10,000 units of the product, what is the total cost of each strategy?
A. ₦1,000,000
Correct B. ₦1,100,000
C. ₦1,200,000
D. ₦1,300,000

Correct Answer: B

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Question 9
A consumer is considering two different products for purchase. Product A has a price of ₦500 and a quality rating of 8/10, while Product B has a price of ₦600 and a quality rating of 9/10. If the consumer is willing to pay up to ₦700 for a product with a quality rating of at least 8/10, which product should the consumer purchase?
Correct A. Product A
B. Product B
C. Neither product
D. Both products

Correct Answer: A

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Question 10
A company is considering two different distribution channels for its product. Channel A involves a direct sales force, while Channel B involves a network of independent distributors. If the company expects to sell 10,000 units of the product, what is the total cost of each channel?
A. ₦1,000,000
Correct B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: B

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Question 11
A company's marketing strategy involves creating a sense of urgency among potential customers. This is an example of which of the following psychological pricing strategies?
Correct A. Scarcity Pricing
B. Loss Leader Pricing
C. Penetration Pricing
D. Value Pricing

Correct Answer: A

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Question 12
A sole trader's business is registered under which of the following business structures?
Correct A. Sole Proprietorship
B. Partnership
C. Limited Liability Company
D. Cooperative Society

Correct Answer: A

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Question 13
A company's warehouse is located in a remote area with limited access to transportation. This can lead to which of the following consequences?
A. Increased Inventory Costs
Correct B. Reduced Customer Satisfaction
C. Increased Transportation Costs
D. Decreased Productivity

Correct Answer: B

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Question 14
A company's marketing strategy involves creating a sense of exclusivity among potential customers. This is an example of which of the following psychological pricing strategies?
Correct A. Scarcity Pricing
B. Loss Leader Pricing
C. Penetration Pricing
D. Value Pricing

Correct Answer: A

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Question 15
A company's warehouse is using a Just-In-Time (JIT) inventory system. Which of the following is a benefit of this system?
Correct A. Reduced Inventory Costs
B. Increased Inventory Levels
C. Improved Productivity
D. Decreased Customer Satisfaction

Correct Answer: A

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Question 16
A company's warehousing and stock control system is designed to minimize inventory costs. Which of the following inventory control methods is most likely to be used?
Correct A. Just-In-Time (JIT) inventory control
B. Economic Order Quantity (EOQ) inventory control
C. FIFO (First-In-First-Out) inventory control
D. LIFO (Last-In-First-Out) inventory control

Correct Answer: A

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Question 17
A company uses a transportation mode that involves the movement of goods by land, sea, and air. Which of the following transportation modes is being used?
Correct A. Multimodal transportation
B. Intermodal transportation
C. Inland water transportation
D. Pipeline transportation

Correct Answer: A

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Question 18
A sole trader's business is registered with the Corporate Affairs Commission (CAC). Which of the following business units is being used?
Correct A. Sole trader
B. Partnership
C. Limited liability company
D. Cooperative society

Correct Answer: A

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Question 19
A company's marketing strategy involves creating a brand identity that is unique and memorable. Which of the following marketing concepts is being used?
A. Product differentiation
Correct B. Brand positioning
C. Segmentation, targeting, and positioning (STP)
D. Market penetration

Correct Answer: B

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Question 20
A company's advertising strategy involves using social media platforms to reach its target audience. Which of the following advertising media is being used?
A. Print advertising
B. Electronic advertising
Correct C. Digital advertising
D. Outdoor advertising

Correct Answer: C

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Question 21
A firm's marketing strategy is to increase its market share by 15% within the next 6 months. If the firm's current market share is 20%, what is the new market share after 6 months?
Correct A. 35%
B. 25%
C. 30%
D. 40%

Correct Answer: A

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Question 22
A company is considering two different production processes for its new product. Process A requires an initial investment of ₦10 million and generates a profit of ₦2 million per year. Process B requires an initial investment of ₦5 million and generates a profit of ₦3 million per year. Which process should the company choose?
A. Process A
Correct B. Process B
C. Both processes are equally profitable
D. Neither process is profitable

Correct Answer: B

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Question 23
A firm's cost structure consists of fixed costs of ₦1 million and variable costs of ₦0.5 million per unit. If the firm produces 10,000 units, what is the total cost?
A. ₦10 million
Correct B. ₦12 million
C. ₦15 million
D. ₦18 million

Correct Answer: B

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Question 24
A firm's revenue is given by the equation R = 2x^2 + 5x + 3, where x is the number of units sold. If the firm sells 10 units, what is the revenue?
A. ₦53
Correct B. ₦63
C. ₦73
D. ₦83

Correct Answer: B

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Question 25
A firm's cost structure consists of fixed costs of ₦1 million and variable costs of ₦0.5 million per unit. If the firm produces 10,000 units, what is the total cost?
A. ₦10 million
Correct B. ₦12 million
C. ₦15 million
D. ₦18 million

Correct Answer: B

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