POST UTME DELSU 2019 Commerce | Objective

Are you preparing for POST UTME DELSU 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 contract of sale, what is the legal effect of a condition precedent?
A. The contract becomes binding as soon as the condition is fulfilled.
B. The contract is automatically terminated if the condition is not fulfilled.
Correct C. The contract is suspended until the condition is fulfilled.
D. The contract is void ab initio.

Correct Answer: C

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Question 2
A company's warehouse has a capacity of 10,000 units. If 8,000 units are already stored, what is the remaining capacity?
A. 10000
B. 8000
Correct C. 2000
D. 12000

Correct Answer: C

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Question 3
A customer deposits ₦10,000 into a savings account with an interest rate of 5% per annum. How much interest will be earned in one year?
A. ₦500
Correct B. ₦1,000
C. ₦1,500
D. ₦2,000

Correct Answer: B

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Question 4
A company uses the following budgetary control system: Budgeted Sales = ₦1,000,000; Budgeted Cost of Goods Sold = ₦600,000; Budgeted Operating Expenses = ₦200,000. What is the budgeted profit?
A. ₦200,000
B. ₦300,000
C. ₦400,000
Correct D. ₦500,000

Correct Answer: D

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Question 5
A marketing manager wants to advertise a new product on television. The cost of the advertisement is ₦500,000. If the company expects to sell 10,000 units of the product at ₦100 each, what is the return on investment (ROI)?
Correct A. 100%
B. 80%
C. 60%
D. 50%

Correct Answer: A

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Question 6
The concept of specialization in production is closely related to the idea of comparative advantage. What is the primary benefit of specialization in international trade?
A. Increased production costs
B. Improved product quality
C. Increased competition
Correct D. Economies of scale

Correct Answer: D

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Question 7
A company is considering two different modes of transport for its goods: road and rail. What are the key factors that the company should consider when deciding between these two modes?
Correct A. Cost, speed, and reliability
B. Distance, weight, and volume
C. Fuel efficiency, maintenance, and safety
D. Environmental impact, security, and customs clearance

Correct Answer: A

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Question 8
A consumer is considering purchasing a product from a foreign company. What are the key factors that the consumer should consider when making this decision?
A. Price, quality, and brand reputation
B. Product features, warranty, and customer support
C. Delivery time, packaging, and return policy
Correct D. Language, currency, and cultural differences

Correct Answer: D

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Question 9
A company is considering entering a new market. What are the key factors that the company should consider when deciding whether to enter this market?
Correct A. Market size, growth rate, and competition
B. Product demand, pricing, and distribution
C. Regulatory environment, taxes, and trade policies
D. Currency fluctuations, exchange rates, and inflation

Correct Answer: A

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Question 10
A company is considering outsourcing its production to a foreign country. What are the key factors that the company should consider when making this decision?
Correct A. Labor costs, tax incentives, and trade agreements
B. Product quality, warranty, and customer support
C. Delivery time, packaging, and return policy
D. Language, currency, and cultural differences

Correct Answer: A

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Question 11
A company's marketing strategy involves a mix of advertising, sales promotion, and public relations. Which of the following is a key benefit of using public relations in a company's marketing strategy?
A. Building brand awareness
B. Increasing sales revenue
Correct C. Improving customer relationships
D. Reducing marketing costs

Correct Answer: C

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Question 12
A sole trader's business is exposed to various risks, including market risk, credit risk, and operational risk. Which of the following is a way to manage operational risk?
A. Diversifying the business
Correct B. Implementing a risk management policy
C. Reducing the scale of operations
D. Transferring risk to a third party

Correct Answer: B

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Question 13
A company's warehouse is used to store finished goods. Which of the following is a benefit of using a just-in-time (JIT) inventory system?
Correct A. Reducing inventory costs
B. Improving product quality
C. Increasing storage capacity
D. Enhancing customer satisfaction

Correct Answer: A

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Question 14
A company's marketing mix involves a combination of product, price, promotion, and place. Which of the following is a key element of the product component?
Correct A. Product features
B. Product packaging
C. Product branding
D. Product pricing

Correct Answer: A

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Question 15
A company's insurance policy covers business interruption, property damage, and liability. Which of the following is a type of insurance policy that covers business interruption?
Correct A. Business interruption insurance
B. Property insurance
C. Liability insurance
D. Workers' compensation insurance

Correct Answer: A

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Question 16
A firm produces two goods, X and Y, using two inputs, labor (L) and capital (K). The production functions are given by X = 2L + 3K and Y = 3L + 2K. If the firm's objective is to maximize profits, which of the following statements is true?
A. The firm will produce only good X.
B. The firm will produce only good Y.
Correct C. The firm will produce both goods X and Y.
D. The firm will not produce any goods.

Correct Answer: C

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Question 17
A company's marketing strategy involves a 20% increase in advertising expenditure and a 15% decrease in sales promotion expenditure. What is the overall effect on the company's marketing mix?
A. The company's marketing mix will become more product-oriented.
B. The company's marketing mix will become more sales-oriented.
Correct C. The company's marketing mix will become more promotion-oriented.
D. The company's marketing mix will become more price-oriented.

Correct Answer: C

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Question 18
A sole trader has an annual turnover of ₦1,500,000 and a net profit of ₦200,000. What is the sole trader's profit margin?
A. 20%
Correct B. 25%
C. 30%
D. 35%

Correct Answer: B

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Question 19
A company's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is labor, and K is capital. If the company wants to produce 100 units of output, how much labor (L) and capital (K) should it use?
A. L = 25, K = 25
Correct B. L = 50, K = 50
C. L = 100, K = 100
D. L = 200, K = 200

Correct Answer: B

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Question 20
A bank's assets are given by A = 2B + 3C, where B is the amount of cash and C is the amount of securities. If the bank's assets are ₦1,500,000 and the amount of cash is ₦500,000, what is the amount of securities (C)?
A. ₦500,000
B. ₦750,000
Correct C. ₦1,000,000
D. ₦1,250,000

Correct Answer: C

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Question 21
In a perfectly competitive market, the demand curve for a firm's product is its
Correct A. marginal revenue curve
B. average revenue curve
C. marginal cost curve
D. average cost curve

Correct Answer: A

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Question 22
A consumer's indifference curve is a graphical representation of the
A. consumer's willingness to pay for a good
Correct B. consumer's marginal utility of a good
C. consumer's total utility of a good
D. consumer's budget constraint

Correct Answer: B

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Question 23
The diagram below shows the relationship between the price of a good and the quantity demanded. What is the slope of the demand curve?
A. -1
B. 0
Correct C. 1
D. 2

Correct Answer: C

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Question 24
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is 4 per unit, and the price of capital is 6 per unit, what is the minimum cost of production?
A. 96
B. 120
Correct C. 144
D. 180

Correct Answer: C

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Question 25
A consumer's budget constraint is given by 2x + 3y = 12. If the consumer's indifference curve is given by u(x,y) = 2x + y, what is the consumer's optimal bundle of goods?
Correct A. (2,4)
B. (3,2)
C. (4,1)
D. (1,6)

Correct Answer: A

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