POST UTME BSU 2019 Commerce | Objective

Are you preparing for POST UTME BSU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing costs. What is the primary reason for this upward-sloping supply curve?
A. The law of increasing costs is due to the fixed costs of production.
B. The law of increasing costs is due to the variable costs of production.
C. The law of increasing costs is due to the economies of scale.
Correct D. The law of increasing costs is due to the diseconomies of scale.

Correct Answer: D

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Question 2
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is the output, L is the labor, and K is the capital. What is the marginal product of labor (MPL) when L = 4 and K = 9?
A. MPL = 0.5
B. MPL = 1
Correct C. MPL = 1.5
D. MPL = 2

Correct Answer: C

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Question 3
A firm is considering two marketing strategies: a high-low strategy and a penetration pricing strategy. Which strategy is more likely to be effective in a market with high demand elasticity?
A. High-low strategy
Correct B. Penetration pricing strategy
C. Both strategies are equally effective
D. Neither strategy is effective

Correct Answer: B

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Question 4
A firm's inventory level is given by I = 2Q + 100, where I is the inventory level and Q is the quantity sold. If the firm sells 50 units, what is the new inventory level?
A. 150
B. 200
Correct C. 250
D. 300

Correct Answer: C

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Question 5
A firm is considering two transportation modes: road and rail. Which mode is more likely to be used for transporting perishable goods?
Correct A. Road
B. Rail
C. Both modes are equally effective
D. Neither mode is effective

Correct Answer: A

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Question 6
A company is considering two different production strategies: make-to-stock (MTS) and make-to-order (MTO). Which strategy is more suitable for a company that produces high-variety, low-volume products?
A. Make-to-stock (MTS)
Correct B. Make-to-order (MTO)
C. Just-in-time (JIT)
D. Mass production

Correct Answer: B

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Question 7
A firm is considering investing in a new project with the following cash flows: Year 1: -₦100,000, Year 2: ₦50,000, Year 3: ₦75,000. What is the net present value (NPV) of the project if the discount rate is 10%?
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

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Question 8
A consumer protection agency has received a complaint about a company's misleading advertisement. The advertisement claims that a product 'will make you lose weight in just 7 days.' What is the most likely legal basis for the agency's action against the company?
Correct A. False advertising
B. Unfair competition
C. Deceptive labeling
D. Breach of contract

Correct Answer: A

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Question 9
A company is considering outsourcing its logistics operations to a third-party provider. What is the primary benefit of outsourcing logistics?
A. Reduced costs
Correct B. Improved efficiency
C. Increased flexibility
D. Enhanced customer service

Correct Answer: B

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Question 10
A bank is considering issuing a new type of loan product that offers a variable interest rate tied to the prime lending rate. What is the primary risk associated with this type of loan product?
A. Credit risk
B. Liquidity risk
Correct C. Interest rate risk
D. Operational risk

Correct Answer: C

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Question 11
A company specializes in producing and selling a single product. The production process involves a series of steps, each with a different probability of success. If the probability of success for each step is 0.8, 0.7, 0.6, and 0.5 respectively, what is the probability that the product will be produced with at least three successful steps?
A. 0.8
B. 0.9
Correct C. 0.95
D. 0.99

Correct Answer: C

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Question 12
A firm has two production plants, A and B. Plant A produces 60% of the firm's output, while plant B produces 40%. If the demand for the firm's product is normally distributed with a mean of 1000 units and a standard deviation of 200 units, what is the probability that plant A will produce more than 80% of the demand?
A. 0.5
B. 0.6
C. 0.7
Correct D. 0.8

Correct Answer: D

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Question 13
A company uses a just-in-time (JIT) inventory system to manage its inventory. The company receives a shipment of 1000 units of a product every week. If the demand for the product is 1200 units per week, what is the probability that the company will run out of stock?
A. 0.2
B. 0.3
C. 0.4
Correct D. 0.5

Correct Answer: D

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Question 14
A firm has two warehouses, A and B. Warehouse A has a capacity of 1000 units, while warehouse B has a capacity of 500 units. If the demand for the firm's product is 1200 units per week, what is the probability that both warehouses will be full?
A. 0.1
B. 0.2
C. 0.3
Correct D. 0.4

Correct Answer: D

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Question 15
A company has two business units, A and B. Business unit A has a profit of ₦100,000, while business unit B has a profit of ₦50,000. If the company's total profit is ₦150,000, what is the ratio of business unit A's profit to business unit B's profit?
A. 2:1
Correct B. 3:1
C. 4:1
D. 5:1

Correct Answer: B

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Question 16
A company is considering two marketing strategies: Strategy A, which involves a high initial investment but generates a high return on investment (ROI), and Strategy B, which involves a low initial investment but generates a low ROI. Which strategy is more likely to be adopted by a company with limited financial resources?
A. Strategy A
Correct B. Strategy B
C. Both strategies are equally likely to be adopted
D. Neither strategy is likely to be adopted

Correct Answer: B

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Question 17
A sole trader is considering expanding their business by hiring additional staff. What is the main advantage of hiring additional staff?
Correct A. Increased productivity
B. Improved customer service
C. Reduced costs
D. Increased flexibility

Correct Answer: A

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Question 18
A company is considering exporting its products to a foreign market. What is the main advantage of exporting?
Correct A. Increased revenue
B. Improved brand reputation
C. Reduced costs
D. Increased market share

Correct Answer: A

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Question 19
A company is considering insuring its business against risks. What is the main advantage of insurance?
A. Reduced costs
B. Improved cash flow
C. Increased revenue
Correct D. Protection against risks

Correct Answer: D

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Question 20
A company is considering investing in a new project. What is the main factor that determines the profitability of the project?
A. Initial investment
Correct B. Expected return on investment (ROI)
C. Break-even point
D. Cash flow

Correct Answer: B

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Question 21
A company is considering expanding its business by opening a new branch. What is the main advantage of opening a new branch?
Correct A. Increased revenue
B. Improved customer service
C. Reduced costs
D. Increased market share

Correct Answer: A

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Question 22
A company is considering investing in a new project. What is the main factor that determines the risk of the project?
A. Initial investment
B. Expected return on investment (ROI)
C. Break-even point
Correct D. Uncertainty of the project

Correct Answer: D

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Question 23
A company is considering exporting its products to a foreign market. What is the main advantage of exporting?
Correct A. Increased revenue
B. Improved brand reputation
C. Reduced costs
D. Increased market share

Correct Answer: A

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Question 24
A company is considering insuring its business against risks. What is the main advantage of insurance?
A. Reduced costs
B. Improved cash flow
C. Increased revenue
Correct D. Protection against risks

Correct Answer: D

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Question 25
A company is considering investing in a new project. What is the main factor that determines the profitability of the project?
A. Initial investment
Correct B. Expected return on investment (ROI)
C. Break-even point
D. Cash flow

Correct Answer: B

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