POST UTME BOWEN UNIVERSITY 2025 Commerce | Objective

Are you preparing for POST UTME BOWEN UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2025 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
In a country with a mixed economy, what is the primary role of the government in the production of goods and services?
A. To maximize profits
B. To regulate the market and ensure fair competition
Correct C. To provide essential public goods and services
D. To control the means of production

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A company is considering outsourcing its logistics operations to a third-party provider. What are the potential benefits of this decision?
A. Increased costs and reduced efficiency
B. Improved customer service and increased market share
Correct C. Reduced costs and improved supply chain management
D. No impact on the company's operations

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A consumer purchases a product online and receives a defective item. What is the consumer's right under the Consumer Protection Act?
Correct A. To return the product for a full refund
B. To exchange the product for a similar item
C. To claim damages for the defective product
D. To file a complaint with the manufacturer

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company is considering investing in a new warehouse to store its inventory. What are the potential benefits of this decision?
A. Improved inventory management and reduced costs
Correct B. Increased storage capacity and improved supply chain management
C. Reduced storage costs and improved customer service
D. No impact on the company's operations

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company is considering exporting its products to a foreign market. What are the potential benefits of this decision?
Correct A. Increased revenue and improved market share
B. Improved brand recognition and increased customer base
C. Reduced costs and improved supply chain management
D. No impact on the company's operations

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A bank's return on assets (ROA) is calculated as net income divided by total assets. If a bank has a net income of ₦120 million and total assets of ₦10 billion, what is its ROA?
Correct A. 0.012
B. 0.0120
C. 0.01200
D. 0.0012

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A firm exports 100 units of a product to a foreign country. The product sells for 10 per unit in the foreign market. If the exchange rate is 1 USD = 400 Naira, what is the total value of the export in Naira?
Correct A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦800,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A warehouse has a storage capacity of 10,000 units. If 8,000 units are already stored, what percentage of the warehouse is occupied?
Correct A. 80%
B. 85%
C. 90%
D. 95%

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A firm uses the following transportation costs: 10 per unit for transportation by road and 20 per unit for transportation by air. If the firm has 100 units to transport and the cost of transportation by road is 1,000, what is the minimum cost of transportation?
Correct A. 1,000
B. 1,500
C. 2,000
D. 2,500

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A consumer protection agency receives a complaint about a firm's product. The agency investigates and finds that the product does not meet the required standards. What action should the agency take?
A. Issue a warning to the firm
B. Impose a fine on the firm
Correct C. Order the firm to recall the product
D. Sue the firm in court

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A company is considering the introduction of a new product line. The product requires a significant investment in production facilities and marketing. However, the company's financial analysts have projected a high return on investment (ROI) of 25% per annum. If the company's cost of capital is 10% per annum, what is the expected net present value (NPV) of the project?
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A consumer protection agency has received a complaint from a customer who purchased a product online. The customer alleges that the product was not as described and was defective. The agency has obtained evidence that the seller had knowledge of the defect and failed to disclose it to the customer. What is the legal basis for the agency's action against the seller?
Correct A. Consumer Protection Act 2019
B. Sales of Goods Act 1979
C. Unfair Contract Terms Act 1977
D. Distance Selling Regulations 2000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A company has a sole trader business structure. The company's owner has decided to expand the business by hiring employees. What is the primary advantage of changing the business structure to a partnership?
A. Increased tax liability
B. Reduced liability for business debts
Correct C. Improved management and decision-making
D. Increased complexity in financial reporting

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A company has a production process that involves the use of a chemical substance. The company has been using the substance for several years without any issues. However, recent studies have shown that the substance may be hazardous to the environment. What is the primary responsibility of the company in this situation?
A. To continue using the substance as usual
B. To discontinue the use of the substance immediately
C. To conduct further research on the substance's effects
Correct D. To consult with regulatory authorities

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A company has a business insurance policy that covers losses due to fire. The company's premises were damaged in a fire, resulting in a loss of ₦500,000. The insurance policy has a deductible of ₦20,000. What is the amount that the company will receive from the insurance company?
Correct A. ₦480,000
B. ₦500,000
C. ₦520,000
D. ₦540,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A sole trader's business is exposed to the risk of a major fire that could result in significant financial losses. To mitigate this risk, the sole trader decides to purchase a fire insurance policy. Which of the following types of insurance policies would be most suitable for this business?
A. Fire insurance policy with a high deductible
B. Fire insurance policy with a low premium
Correct C. Business interruption insurance policy
D. Liability insurance policy

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A company is considering the purchase of a new machine that will cost ₦500,000. The machine is expected to last for 5 years and will save the company ₦200,000 per year in labor costs. What is the net present value of the machine, assuming a discount rate of 10%?
Correct A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A bank is considering the introduction of a new credit card product. The product will have a 20% annual interest rate and a 2% annual fee. What is the effective annual interest rate of the product?
A. 22%
Correct B. 24%
C. 26%
D. 28%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A company is shipping a large quantity of goods from Lagos to Abuja. The company has two options for transportation: Option A, which involves using a truck with a capacity of 10 tons and a cost of ₦50 per kilometer, or Option B, which involves using a train with a capacity of 20 tons and a cost of ₦30 per kilometer. If the distance between Lagos and Abuja is 500 kilometers, which option is more cost-effective?
A. Option A
Correct B. Option B
C. Both options are equally cost-effective
D. Neither option is cost-effective

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company is considering the purchase of a new machine that will cost ₦1,000,000. The machine is expected to last for 10 years and will save the company ₦100,000 per year in labor costs. What is the payback period of the machine?
A. 5 years
Correct B. 6 years
C. 7 years
D. 8 years

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
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. Flexibility
B. Adaptability
C. Consistency
Correct D. Unpredictability

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A warehouse manager wants to optimize storage space by arranging boxes of different sizes. Which of the following storage arrangements would result in the most efficient use of space?
A. First-In-First-Out (FIFO)
B. Last-In-First-Out (LIFO)
Correct C. FIFO with optimal box placement
D. LIFO with random box placement

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A consumer protection agency receives a complaint about a company's deceptive advertising practices. Which of the following is a key principle of consumer protection law?
Correct A. Transparency
B. Honesty
C. Fairness
D. Unfairness

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A company purchases an insurance policy to protect against business risks. Which of the following is a type of insurance policy that covers against loss of income due to unforeseen events?
A. Liability insurance
B. Property insurance
Correct C. Business interruption insurance
D. Workers' compensation insurance

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A company exports goods to a foreign country. Which of the following is a key consideration in international trade?
A. Tariffs
B. Quotas
C. Exchange rates
Correct D. All of the above

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support