POST UTME BELLS UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A warehouse manager wants to store 500 boxes of goods in a warehouse with a capacity of 2000 square feet. If each box occupies 0.5 square feet, how many warehouses will be needed?
A. 2
B. 3
C. 4
D. 5
Question 2
A company's Memorandum of Association (MoA) outlines its objectives and powers. Which of the following is NOT a typical objective of a company?
A. To make a profit
B. To engage in charitable activities
C. To acquire and hold shares in other companies
D. To conduct research and development
Question 3
A firm's risk management strategy involves identifying and assessing
A. all possible risks
B. only financial risks
C. only operational risks
D. only strategic risks
Question 4
A company is considering two different production processes to produce a product. Process A requires an initial investment of ₦100,000 and has a variable cost of ₦50 per unit produced. Process B requires an initial investment of ₦150,000 and has a variable cost of ₦30 per unit produced. If the company produces 1000 units of the product, what is the total cost of production for each process?
A. Process A: ₦150,000, Process B: ₦120,000
B. Process A: ₦120,000, Process B: ₦150,000
C. Process A: ₦100,000, Process B: ₦100,000
D. Process A: ₦150,000, Process B: ₦150,000
Question 5
A bank's cash reserve ratio is the ratio of its
A. total deposits to its total cash reserves
B. total cash reserves to its total deposits
C. total loans to its total deposits
D. total investments to its total deposits
Question 6
A company's production function is given by Q = 2L + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company uses 10 units of labor and 5 units of capital, what is the quantity produced?
A. 25
B. 30
C. 35
D. 40
Question 7
A firm is considering launching a new product in a foreign market. The product has a high demand in the target market, but the firm is concerned about the high transportation costs. What is the best way for the firm to minimize its transportation costs?
A. Use a freight forwarder
B. Use a shipping company
C. Use a logistics company
D. Use a combination of the above
Question 8
The concept of specialization in production is closely related to the idea of comparative advantage. Explain how specialization leads to increased productivity and efficiency in production.
A. Specialization leads to increased productivity and efficiency in production by allowing firms to focus on producing a specific good or service, thereby reducing production costs and increasing output.
B. Specialization leads to decreased productivity and efficiency in production by forcing firms to produce a limited range of goods or services, thereby reducing output and increasing costs.
C. Specialization has no impact on productivity and efficiency in production, as firms can still produce a wide range of goods or services.
D. Specialization leads to increased productivity and efficiency in production by allowing firms to take advantage of economies of scale, thereby reducing production costs and increasing output.
Question 9
A business owner purchases an insurance policy to protect against losses due to fire. The policy has a deductible of ₦50,000. If the business suffers a loss of ₦200,000 due to fire, how much will the insurance company pay?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 10
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity of a commodity in this market?
A. ₦100, 100 units
B. ₦120, 80 units
C. ₦150, 60 units
D. ₦180, 40 units
Question 11
A company's marketing strategy involves a 10% discount on all products sold during a promotional period. If the original price of a product is ₦1000, what is the new price after the discount?
A. ₦900
B. ₦950
C. ₦1000
D. ₦1050
Question 12
A company's marketing mix consists of product, price, promotion, and place. Which of the following is NOT a part of the marketing mix?
A. Product
B. Price
C. Promotion
D. Distribution
Question 13
A bank's cash reserve ratio is 20%. If the bank has a cash reserve of ₦1,000,000 and it wants to increase its lending capacity by ₦500,000, how much more cash must it hold in reserve?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 14
A firm is considering launching a new product in a foreign market. The product has a high demand in the target market, but the firm is concerned about the high transportation costs. What is the best way for the firm to minimize its transportation costs?
A. Use a freight forwarder
B. Use a shipping company
C. Use a logistics company
D. Use a combination of the above
Question 15
A company is considering two different production methods for its new product. Method A involves a higher initial investment but lower production costs, while Method B involves a lower initial investment but higher production costs. Which method should the company choose if it expects to produce 10,000 units per year for the next 5 years?
A. Method A
B. Method B
C. Method C
D. Method D

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