POST UTME ESUT 2025 Commerce | Objective

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Question 1 View Details
A sole trader's business is registered under which of the following?
A. Partnership
B. Limited Liability Company
Correct C. Sole Proprietorship
D. Cooperative Society

Correct Answer: C

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Question 2 View Details
A company's Memorandum of Association is a document that outlines its
A. Objectives
B. Share Capital
C. Management Structure
Correct D. All of the above

Correct Answer: D

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Question 3 View Details
The Consumer Protection Act of 1999 provides protection to consumers in the following ways:
A. By providing a cooling-off period for consumers to cancel purchases
B. By requiring businesses to provide clear and accurate information about products
C. By allowing consumers to return products that do not meet their expectations
Correct D. All of the above

Correct Answer: D

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Question 4 View Details
A company's Articles of Association is a document that outlines its
A. Management Structure
B. Share Capital
C. Objectives
Correct D. Rules for the Conduct of Business

Correct Answer: D

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Question 5 View Details
A sole trader's business is not registered under which of the following?
A. Sole Proprietorship
B. Partnership
C. Limited Liability Company
Correct D. Cooperative Society

Correct Answer: D

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Question 6 View Details
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm wants to increase output by 20% while keeping labor constant at 16 units, how many units of capital should it hire?
A. 32
B. 64
Correct C. 128
D. 256

Correct Answer: C

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Question 7 View Details
A company has two production plants, A and B. Plant A produces 100 units of a product per day, while plant B produces 80 units per day. If the company wants to produce a total of 180 units per day, and the cost of producing one unit in plant A is ₦50, while the cost in plant B is ₦60, how much will the company save by producing all the units in plant A?
Correct A. ₦1000
B. ₦1200
C. ₦1500
D. ₦1800

Correct Answer: A

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Question 8 View Details
A firm's revenue function is given by R(x) = 2x^2 - 10x + 5, where x is the number of units sold. If the firm wants to maximize its revenue, how many units should it sell?
A. 5
Correct B. 10
C. 15
D. 20

Correct Answer: B

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Question 9 View Details
A company has a budget of ₦100,000 to spend on advertising. If the cost of advertising on radio is ₦50 per unit, and the cost of advertising on TV is ₦75 per unit, and the company wants to spend at least ₦20,000 on radio advertising, how much should it spend on TV advertising?
A. ₦20000
B. ₦30000
Correct C. ₦40000
D. ₦50000

Correct Answer: C

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Question 10 View Details
A firm's cost function is given by C(x) = 2x^2 + 10x + 5, where x is the number of units produced. If the firm wants to minimize its cost, how many units should it produce?
A. 5
Correct B. 10
C. 15
D. 20

Correct Answer: B

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Question 11 View Details
A company's liability under the Consumer Protection Act can be limited by:
A. Negotiating with the consumer
B. Providing a warranty
Correct C. Limiting liability in the contract
D. Paying a fine

Correct Answer: C

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Question 12 View Details
In a warehouse, the inventory turnover ratio is calculated as:
Correct A. \frac{Cost of Goods Sold}{Average Inventory}
B. \frac{Average Inventory}{Cost of Goods Sold}
C. \frac{Cost of Goods Sold}{Sales}
D. \frac{Sales}{Cost of Goods Sold}

Correct Answer: A

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Question 13 View Details
A company's foreign trade can be affected by:
A. Tariffs and quotas
B. Exchange rates and inflation
C. Government policies and regulations
Correct D. All of the above

Correct Answer: D

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Question 14 View Details
A risk management strategy can include:
A. Diversification
B. Hedging
C. Speculation
Correct D. All of the above

Correct Answer: D

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Question 15 View Details
A company's liability under the Transport Act can be limited by:
A. Negotiating with the transport company
B. Providing a warranty
Correct C. Limiting liability in the contract
D. Paying a fine

Correct Answer: C

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Question 16 View Details
In a warehouse, the stock turnover ratio is calculated as:
Correct A. \frac{Cost of Goods Sold}{Average Inventory}
B. \frac{Average Inventory}{Cost of Goods Sold}
C. \frac{Cost of Goods Sold}{Sales}
D. \frac{Sales}{Cost of Goods Sold}

Correct Answer: A

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Question 17 View Details
A company's foreign trade can be affected by:
A. Tariffs and quotas
B. Exchange rates and inflation
C. Government policies and regulations
Correct D. All of the above

Correct Answer: D

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Question 18 View Details
A risk management strategy can include:
A. Diversification
B. Hedging
C. Speculation
Correct D. All of the above

Correct Answer: D

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Question 19 View Details
A company's liability under the Consumer Protection Act can be limited by:
A. Negotiating with the consumer
B. Providing a warranty
Correct C. Limiting liability in the contract
D. Paying a fine

Correct Answer: C

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Question 20 View Details
In a warehouse, the inventory turnover ratio is calculated as:
Correct A. \frac{Cost of Goods Sold}{Average Inventory}
B. \frac{Average Inventory}{Cost of Goods Sold}
C. \frac{Cost of Goods Sold}{Sales}
D. \frac{Sales}{Cost of Goods Sold}

Correct Answer: A

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Question 21 View Details
A commercial bank's primary function is to act as a _______ between the surplus units and deficit units in the economy.
A. banker
B. broker
C. dealer
Correct D. agent

Correct Answer: D

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Question 22 View Details
The _______ of a firm refers to the process of acquiring and utilizing resources to produce goods and services.
Correct A. production
B. distribution
C. consumption
D. marketing

Correct Answer: A

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Question 23 View Details
A _______ is a contract between two or more parties that involves the exchange of goods or services.
Correct A. sale
B. purchase
C. lease
D. rent

Correct Answer: A

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Question 24 View Details
The _______ of a firm refers to the process of creating and communicating value to customers.
A. production
B. distribution
C. consumption
Correct D. marketing

Correct Answer: D

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Question 25 View Details
A _______ is a type of business organization that is owned and controlled by its members.
A. corporation
B. partnership
Correct C. cooperative
D. sole proprietorship

Correct Answer: C

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