POST UTME BSU 2020 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 2020 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
In a perfectly competitive market, what is the relationship between the marginal revenue (MR) and marginal cost (MC) curves?
A. MR > MC
B. MR < MC
Correct C. MR = MC
D. MR ≠ MC

Correct Answer: C

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Question 2
A company has the following budget constraint: 2x + 3y = 12. If the price of x is ₦2 and the price of y is ₦3, how many units of y should the company produce to maximize its profit?
A. 4
Correct B. 6
C. 8
D. 10

Correct Answer: B

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Question 3
A firm's production function is given by Q = 2L^0.5 + 3K^0.5. If the price of labor is ₦10 and the price of capital is ₦20, and the firm wants to produce 10 units of output, how much should it spend on labor?
A. ₦100
Correct B. ₦150
C. ₦200
D. ₦250

Correct Answer: B

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Question 4
A company has the following cost function: C(x) = 2x^2 + 3x + 10. If the price of the product is ₦5, how many units should the company produce to minimize its average cost?
A. 2
Correct B. 4
C. 6
D. 8

Correct Answer: B

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Question 5
A firm's revenue function is given by R(x) = 2x^2 + 3x. If the firm wants to maximize its revenue, how many units should it produce?
A. 2
B. 4
Correct C. 6
D. 8

Correct Answer: C

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Question 6
A company's marketing strategy involves a mix of advertising and public relations. Which of the following best describes the primary goal of this strategy?
Correct A. To increase brand awareness
B. To generate leads
C. To build customer loyalty
D. To create a buzz around a new product

Correct Answer: A

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Question 7
A firm's warehouse is designed to store goods in a way that minimizes the risk of damage and loss. Which of the following storage methods is most effective in achieving this goal?
A. First-in, first-out (FIFO)
B. Last-in, first-out (LIFO)
Correct C. First-expired, first-out (FEFO)
D. Random storage

Correct Answer: C

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Question 8
A bank's financial statements show a significant increase in profits over the past year. However, the bank's return on equity (ROE) has decreased. What does this suggest about the bank's financial performance?
A. The bank is becoming more profitable
Correct B. The bank is becoming less profitable
C. The bank's profitability is stable
D. The bank's financial performance is improving

Correct Answer: B

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Question 9
A company's insurance policy covers losses due to natural disasters. However, the policy excludes losses due to floods. Which of the following best describes the type of risk this policy covers?
Correct A. Natural disaster risk
B. Flood risk
C. Fire risk
D. Theft risk

Correct Answer: A

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Question 10
A firm's marketing strategy involves a mix of advertising and public relations. Which of the following best describes the primary goal of this strategy?
Correct A. To increase brand awareness
B. To generate leads
C. To build customer loyalty
D. To create a buzz around a new product

Correct Answer: A

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Question 11
A company's marketing strategy involves creating a new product line that targets a specific demographic. The product line is designed to appeal to a younger audience, with a focus on sustainability and eco-friendliness. Which of the following marketing strategies is most likely to be used by this company?
A. Segmentation
B. Targeting
Correct C. Positioning
D. Differentiation

Correct Answer: C

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Question 12
A consumer purchases a product online, but upon receiving it, finds that it is damaged. The consumer contacts the company's customer service department, but they are unhelpful. What type of consumer protection law is most relevant in this situation?
A. Consumer Rights Act
B. Unfair Contract Terms Act
Correct C. Distance Selling Regulations
D. Product Liability Act

Correct Answer: C

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Question 13
A sole trader operates a small business, selling handmade crafts online. The business is registered for VAT, but the sole trader is unsure about how to calculate the VAT on their sales. What type of business unit is this?
Correct A. Sole Trader
B. Partnership
C. Limited Company
D. Limited Liability Partnership

Correct Answer: A

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Question 14
A bank offers a credit card with a 0% interest rate for the first 6 months. After the promotional period ends, the interest rate increases to 20%. What type of financial institution is this?
Correct A. Commercial Bank
B. Investment Bank
C. Central Bank
D. Merchant Bank

Correct Answer: A

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Question 15
A company purchases insurance to protect against business risks. The policy includes a deductible of ₦10,000. What type of insurance is this?
A. Liability Insurance
Correct B. Property Insurance
C. Business Interruption Insurance
D. Professional Indemnity Insurance

Correct Answer: B

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Question 16
A company is considering a new marketing strategy that involves partnering with a popular social media influencer. The influencer has a large following and is known for promoting products that align with the company's brand values. However, the influencer's fees are quite high, and the company is unsure if the partnership will generate sufficient returns on investment. What type of risk is the company facing?
Correct A. Financial risk
B. Reputation risk
C. Strategic risk
D. Operational risk

Correct Answer: A

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Question 17
A sole trader is considering expanding their business by hiring employees. However, they are unsure about the legal implications of doing so. What type of business structure would the sole trader need to adopt in order to hire employees?
A. Partnership
Correct B. Limited company
C. Sole trader
D. Cooperative

Correct Answer: B

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Question 18
A company is considering a new production process that involves outsourcing some of its manufacturing to a third-party supplier. However, the company is unsure about the potential risks associated with this strategy. What type of risk is the company facing?
Correct A. Supply chain risk
B. Operational risk
C. Strategic risk
D. Financial risk

Correct Answer: A

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Question 19
A company is considering a new marketing strategy that involves creating a viral video campaign. However, the company is unsure about the potential risks associated with this strategy. What type of risk is the company facing?
Correct A. Reputation risk
B. Strategic risk
C. Operational risk
D. Financial risk

Correct Answer: A

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Question 20
A company is considering a new production process that involves using a new raw material. However, the company is unsure about the potential risks associated with this strategy. What type of risk is the company facing?
A. Supply chain risk
Correct B. Operational risk
C. Strategic risk
D. Financial risk

Correct Answer: B

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Question 21
In a production system with a fixed production capacity, what is the impact of increasing the number of production shifts on the total output?
A. Total output increases proportionally with the number of shifts.
Correct B. Total output increases, but at a decreasing rate.
C. Total output remains constant.
D. Total output decreases.

Correct Answer: B

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Question 22
A company has two production lines, A and B, with production capacities of 100 units and 200 units per hour, respectively. If the demand for the product is 300 units per hour, what is the optimal production strategy?
A. Produce 100 units per hour on line A and 200 units per hour on line B.
Correct B. Produce 200 units per hour on line A and 100 units per hour on line B.
C. Produce 300 units per hour on line A and 0 units per hour on line B.
D. Produce 0 units per hour on line A and 300 units per hour on line B.

Correct Answer: B

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Question 23
A sole trader has a business that generates an average monthly profit of ₦100,000. If the sole trader wants to expand the business, what is the minimum amount of capital required to increase the monthly profit by 20%?
A. ₦120,000
B. ₦150,000
Correct C. ₦180,000
D. ₦200,000

Correct Answer: C

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Question 24
A company has a warehouse with a capacity of 10,000 units. If the company receives a shipment of 5,000 units, what is the new capacity of the warehouse?
A. 5,000 units
B. 10,000 units
Correct C. 15,000 units
D. 20,000 units

Correct Answer: C

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Question 25
A bank has a reserve requirement of 10% for its customers. If a customer has a deposit of ₦100,000, what is the minimum amount of cash that the bank must hold in reserve?
Correct A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: A

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