POST UTME ESUT 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's liability under the Consumer Protection Act can be limited by:
A. Negotiating with the consumer
B. Providing a warranty
C. Limiting liability in the contract
D. Paying a fine
Question 2
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
B. 10
C. 15
D. 20
Question 3
A company's Articles of Association is a document that outlines its
A. Management Structure
B. Share Capital
C. Objectives
D. Rules for the Conduct of Business
Question 4
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
C. 128
D. 256
Question 5
A _______ is a type of business organization that is owned and controlled by its members.
A. corporation
B. partnership
C. cooperative
D. sole proprietorship
Question 6
A company's foreign trade can be affected by:
A. Tariffs and quotas
B. Exchange rates and inflation
C. Government policies and regulations
D. All of the above
Question 7
A company's liability under the Transport Act can be limited by:
A. Negotiating with the transport company
B. Providing a warranty
C. Limiting liability in the contract
D. Paying a fine
Question 8
The _______ of a firm refers to the process of acquiring and utilizing resources to produce goods and services.
A. production
B. distribution
C. consumption
D. marketing
Question 9
In a perfectly competitive market, the supply curve is upward-sloping due to the law of increasing costs. However, in a monopolistically competitive market, the supply curve is also upward-sloping, but for a different reason. What is the primary reason for the upward-sloping supply curve in a monopolistically competitive market?
A. The law of increasing costs
B. The presence of advertising and product differentiation
C. The existence of barriers to entry
D. The influence of government policies
Question 10
In a warehouse, the inventory turnover ratio is calculated as:
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}
Question 11
The _______ of a firm refers to the process of creating and communicating value to customers.
A. production
B. distribution
C. consumption
D. marketing
Question 12
A sole trader's business is registered under which of the following?
A. Partnership
B. Limited Liability Company
C. Sole Proprietorship
D. Cooperative Society
Question 13
In a warehouse, the inventory turnover ratio is calculated as:
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}
Question 14
A _______ is a contract between two or more parties that involves the exchange of goods or services.
A. sale
B. purchase
C. lease
D. rent
Question 15
A company is considering two different production processes for its product. Process A has a higher fixed cost but a lower variable cost per unit, while Process B has a lower fixed cost but a higher variable cost per unit. Which process should the company choose if it expects to produce 10,000 units?
A. Process A
B. Process B
C. It depends on the expected price of the product
D. It depends on the expected demand for the product

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