POST UTME CRAWFORD UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The Consumer Protection Act of 1999 in Nigeria provides for the protection of consumers against unfair trade practices. Which of the following is a key provision of the Act?
A. The Act provides for the establishment of a Consumer Protection Council.
B. The Act provides for the protection of consumers against unfair trade practices.
C. The Act provides for the establishment of a Consumer Protection Agency.
D. The Act provides for the protection of consumers against false advertising.
Question 2
A warehouse manager is responsible for storing goods worth ₦5 million. The manager uses a first-in-first-out (FIFO) inventory system. If 10% of the goods are damaged during storage, what is the total value of the damaged goods?
A. ₦500,000
B. ₦500,000
C. ₦500,000
D. ₦500,000
Question 3
A company has a production process that involves the following steps: planning, production, and distribution. What is the primary goal of the distribution step?
A. To deliver the product to the customer
B. To store the product in a warehouse
C. To transport the product to the market
D. To sell the product to the customer
Question 4
A sole trader, Mr. Ade, has a business that sells electronics. He has a profit of ₦150,000 and a turnover of ₦1,500,000. What is his gross profit percentage?
A. 10%
B. 15%
C. 20%
D. 25%
Question 5
A marketing strategy that focuses on creating a unique selling proposition (USP) to differentiate a product from its competitors is known as
A. Segmentation
B. Targeting
C. Positioning
D. Differentiation
Question 6
A company's insurance policy has a deductible of ₦50,000. If the company experiences a loss of ₦200,000, what is the amount that the insurance company will pay?
A. ₦150,000
B. ₦175,000
C. ₦200,000
D. ₦225,000
Question 7
A company exports goods worth ₦10 million to a foreign country. The company uses a letter of credit to secure payment. If the foreign buyer fails to pay, what is the company's recourse?
A. The company can sue the foreign buyer in their home country.
B. The company can claim the payment from the bank that issued the letter of credit.
C. The company can cancel the letter of credit and claim the payment from the foreign buyer.
D. The company can negotiate a new payment plan with the foreign buyer.
Question 8
A company has a production process that involves the following steps: planning, production, and distribution. What is the primary benefit of the production process?
A. Increased efficiency
B. Reduced labor costs
C. Improved product quality
D. Enhanced customer satisfaction
Question 9
A company's sole trader is responsible for all the profits and losses of the business. This is an example of a(n)
A. Limited Liability
B. Unlimited Liability
C. Partnership
D. Sole Trader
Question 10
A company uses the Just-In-Time (JIT) method of inventory management. If the company receives an order for 500 units of goods and has a lead time of 5 days, what is the total inventory cost using the JIT method?
A. ₦5,000
B. ₦5,500
C. ₦6,000
D. ₦6,500
Question 11
A firm is considering two different transportation modes to move its products from a warehouse to a distribution center. Mode A has a cost of ₦100 per unit and a transportation time of 2 days, while Mode B has a cost of ₦80 per unit and a transportation time of 3 days. If the firm needs to transport 10,000 units, what is the total cost of transportation using Mode A?
A. ₦800,000
B. ₦1,000,000
C. ₦1,200,000
D. ₦1,500,000
Question 12
A company has a production process that involves the following steps: planning, production, and distribution. What is the primary goal of the planning step?
A. To determine the market demand for the product
B. To identify the raw materials needed for production
C. To establish the production schedule
D. To set the price of the product
Question 13
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). Which of the following is a consequence of this?
A. The sole trader cannot sue or be sued in their personal capacity.
B. The sole trader's business is not entitled to tax relief.
C. The sole trader's business is not eligible for government contracts.
D. The sole trader's business is not required to file annual returns.
Question 14
A company's inventory management system uses the Economic Order Quantity (EOQ) model to determine the optimal order quantity. The EOQ model is given by the formula: EOQ = √(2DS/H), where D is the annual demand, S is the ordering cost, and H is the holding cost. If the annual demand is 10,000 units, the ordering cost is ₦50 per order, and the holding cost is ₦5 per unit per year, what is the optimal order quantity?
A. 1,000 units
B. 5,000 units
C. 10,000 units
D. 20,000 units
Question 15
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 company is concerned about the potential risks associated with partnering with an influencer, including the risk of negative publicity and the risk of the influencer promoting competing products. Which of the following is the most appropriate way for the company to mitigate these risks?
A. Negotiate a contract with the influencer that includes a clause that prohibits them from promoting competing products
B. Conduct a thorough background check on the influencer to ensure they have a good reputation
C. Require the influencer to disclose their relationship with the company to their followers
D. Limit the scope of the partnership to a specific product or service

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