POST UTME CALEB UNIVERSITY 2018 Commerce | Objective

Are you preparing for POST UTME CALEB UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
In a just-in-time (JIT) inventory system, what is the primary goal of the warehouse manager?
A. To minimize inventory costs
B. To maximize storage capacity
Correct C. To reduce lead times
D. To increase order quantities

Correct Answer: C

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Question 2
A company has two warehouses, A and B, with capacities of 1000 and 500 units, respectively. Warehouse A has 800 units of product X, while warehouse B has 200 units. If 300 units are to be transferred from warehouse A to warehouse B, what is the new capacity of warehouse A?
A. 1200
Correct B. 900
C. 1000
D. 800

Correct Answer: B

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Question 3
A firm has a warehouse with a capacity of 500 units. The firm has 300 units of product X and 200 units of product Y. If the firm receives an order for 150 units of product X, what is the new capacity of the warehouse?
Correct A. 350
B. 450
C. 500
D. 550

Correct Answer: A

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Question 4
A company has a warehouse with a capacity of 1000 units. The company has 500 units of product X and 300 units of product Y. If the company receives an order for 200 units of product X, what is the new capacity of the warehouse?
A. 800
Correct B. 900
C. 1000
D. 1100

Correct Answer: B

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Question 5
A firm has a warehouse with a capacity of 500 units. The firm has 200 units of product X and 300 units of product Y. If the firm receives an order for 150 units of product X, what is the new capacity of the warehouse?
Correct A. 350
B. 450
C. 500
D. 550

Correct Answer: A

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Question 6
A company has a sole trader business structure. What is the primary advantage of this structure?
A. Limited liability
Correct B. Easy to set up
C. No need for formal meetings
D. No tax benefits

Correct Answer: B

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Question 7
A bank offers a 5-year fixed deposit account with a 10% interest rate. If you deposit ₦100,000, how much will you receive at the end of the 5-year period?
Correct A. ₦162,887.50
B. ₦165,000
C. ₦170,000
D. ₦175,000

Correct Answer: A

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Question 8
A company has a production cost of ₦50 per unit and sells its product for ₦100 per unit. What is the profit per unit?
A. ₦50
Correct B. ₦75
C. ₦50
D. ₦25

Correct Answer: B

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Question 9
A company uses the following data to calculate its risk exposure: Probability of loss = 0.05, Expected loss = ₦10,000. What is the risk premium?
A. ₦500
B. ₦1,000
Correct C. ₦5,000
D. ₦10,000

Correct Answer: C

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Question 10
A company has a sole trader business structure. What is the primary disadvantage of this structure?
A. Limited liability
B. Easy to set up
C. No need for formal meetings
Correct D. Unlimited personal liability

Correct Answer: D

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Question 11
A company's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If labor increases by 20% and capital remains constant, what is the percentage change in output?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 12
A sole trader, Mr. A, has a business income of ₦500,000 and expenses of ₦200,000. If he pays 25% tax on his business income, how much will he pay in tax?
Correct A. ₦125,000
B. ₦150,000
C. ₦175,000
D. ₦200,000

Correct Answer: A

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Question 13
A company's cost of goods sold (COGS) is ₦1,000,000 and its selling price is ₦2,000,000. If it sells 5,000 units, what is its contribution margin?
A. ₦1,250,000
Correct B. ₦1,500,000
C. ₦1,750,000
D. ₦2,000,000

Correct Answer: B

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Question 14
A consumer protection agency receives a complaint from a customer who was sold a defective product. The agency finds that the product was sold at a price higher than the recommended retail price. What is the agency's likely course of action?
Correct A. Order the company to refund the customer's money
B. Order the company to replace the defective product
C. Order the company to pay compensation to the customer
D. Close the case as it is not a serious complaint

Correct Answer: A

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Question 15
A company's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If capital increases by 20% and labor remains constant, what is the percentage change in output?
A. 10%
B. 20%
Correct C. 30%
D. 40%

Correct Answer: C

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Question 16
In a perfectly competitive market, if the demand for a product increases, what will happen to the equilibrium price and quantity?
A. Price will decrease and quantity will increase
Correct B. Price will increase and quantity will decrease
C. Price will remain the same and quantity will increase
D. Price will decrease and quantity will decrease

Correct Answer: B

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Question 17
A company is considering two different production processes for a new product. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit, while Process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the selling price of the product is ₦80 per unit, which process should the company use?
Correct A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable

Correct Answer: A

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Question 18
A consumer protection agency has received a complaint about a company that is selling a product with a misleading label. The label claims that the product is '100% natural' when in fact it contains 20% artificial ingredients. What is the legal consequence for the company?
A. The company will be fined ₦500,000
Correct B. The company will be required to recall the product
C. The company will be sued for damages
D. The company will be allowed to continue selling the product

Correct Answer: B

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Question 19
A company is considering exporting its product to a foreign country. The company has estimated that the cost of production is ₦50 per unit, the selling price in the foreign market is ₦80 per unit, and the transportation cost is ₦20 per unit. What is the profit per unit for the company?
A. ₦10 per unit
B. ₦20 per unit
Correct C. ₦30 per unit
D. ₦40 per unit

Correct Answer: C

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Question 20
A company has purchased an insurance policy that covers against loss of goods in transit. The premium paid is ₦10,000 and the deductible is ₦5,000. If the company suffers a loss of ₦20,000, what is the amount paid by the insurance company?
A. ₦15,000
Correct B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: B

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