POST UTME FUTA 2018 Commerce | Objective

Are you preparing for POST UTME FUTA 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.

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Question 1
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). What is the legal implication of this?
Correct A. The business is not recognized as a legal entity.
B. The business is not entitled to limited liability.
C. The business is not required to file tax returns.
D. The business is not eligible for government contracts.

Correct Answer: A

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Question 2
A company's Memorandum and Articles of Association are not registered with the Corporate Affairs Commission (CAC). What is the legal implication of this?
Correct A. The company is not recognized as a legal entity.
B. The company is not entitled to limited liability.
C. The company is not required to file tax returns.
D. The company is not eligible for government contracts.

Correct Answer: A

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Question 3
A company's Memorandum and Articles of Association are not registered with the Corporate Affairs Commission (CAC). What is the legal implication of this?
Correct A. The company is not recognized as a legal entity.
B. The company is not entitled to limited liability.
C. The company is not required to file tax returns.
D. The company is not eligible for government contracts.

Correct Answer: A

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Question 4
A company's Memorandum and Articles of Association are not registered with the Corporate Affairs Commission (CAC). What is the legal implication of this?
Correct A. The company is not recognized as a legal entity.
B. The company is not entitled to limited liability.
C. The company is not required to file tax returns.
D. The company is not eligible for government contracts.

Correct Answer: A

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Question 5
A company's Memorandum and Articles of Association are not registered with the Corporate Affairs Commission (CAC). What is the legal implication of this?
Correct A. The company is not recognized as a legal entity.
B. The company is not entitled to limited liability.
C. The company is not required to file tax returns.
D. The company is not eligible for government contracts.

Correct Answer: A

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Question 6
A company has two warehouses, A and B. Warehouse A has a capacity of 10,000 units and is currently 70% full, while Warehouse B has a capacity of 5,000 units and is currently 50% full. If the company receives an order for 8,000 units, which warehouse should it use to fulfill the order?
Correct A. Warehouse A
B. Warehouse B
C. Both Warehouses A and B
D. Neither Warehouse A nor B

Correct Answer: A

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Question 7
A business has two production lines, P1 and P2. Line P1 produces 500 units per hour, while Line P2 produces 300 units per hour. If the business operates for 8 hours a day, what is the total number of units produced per day?
A. 4000
Correct B. 5000
C. 6000
D. 7000

Correct Answer: B

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Question 8
A company has a sole trader business structure. What is the primary advantage of this structure?
A. Limited liability
B. Easy to set up
Correct C. Flexibility in decision-making
D. No tax benefits

Correct Answer: C

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Question 9
A company has a risk management strategy that includes diversification. What is the primary benefit of diversification?
Correct A. Reduced risk
B. Increased returns
C. Improved liquidity
D. Enhanced reputation

Correct Answer: A

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Question 10
A company has a warehouse with a capacity of 20,000 units. The warehouse is currently 60% full. If the company receives an order for 12,000 units, what is the remaining capacity of the warehouse?
Correct A. 8000
B. 10000
C. 12000
D. 14000

Correct Answer: A

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Question 11
Determine the value of x in the equation: ( rac{1}{x} + rac{1}{x+1} = rac{1}{2} )
Correct A. 1
B. 2
C. 3
D. 4

Correct Answer: A

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Question 12
A company's profit is given by the equation: ( P = 2x^2 + 5x - 3 ). Find the value of x when P = 10.
A. 1
Correct B. 2
C. 3
D. 4

Correct Answer: B

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Question 13
A firm's revenue is given by the equation: ( R = 3x^2 - 2x + 1 ). Find the value of x when R = 10.
A. 1
B. 2
Correct C. 3
D. 4

Correct Answer: C

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Question 14
A consumer protection agency is considering a new law to regulate the sale of goods. Which of the following is a key principle of consumer protection?
A. The right to a fair trial
Correct B. The right to compensation for damages
C. The right to withdraw from a contract
D. The right to a refund

Correct Answer: B

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Question 15
A company is considering a new marketing strategy to increase sales. Which of the following is a key benefit of using social media advertising?
A. Increased brand awareness
Correct B. Improved customer engagement
C. Enhanced product visibility
D. Better customer retention

Correct Answer: B

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Question 16
In a perfectly competitive market, the supply curve is typically represented by the law of increasing marginal costs. What is the primary reason for this relationship?
A. The law of increasing marginal costs is a result of the increasing scarcity of resources.
B. The law of increasing marginal costs is a result of the decreasing marginal utility of additional units produced.
Correct C. The law of increasing marginal costs is a result of the increasing marginal cost of production due to the law of diminishing returns.
D. The law of increasing marginal costs is a result of the increasing price of raw materials.

Correct Answer: C

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Question 17
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input levels are L = 4 and K = 9, what is the marginal product of labor?
A. 2
B. 4
Correct C. 6
D. 8

Correct Answer: C

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Question 18
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is P = 20, what is the consumer surplus?
A. 100
Correct B. 200
C. 300
D. 400

Correct Answer: B

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Question 19
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input levels are L = 4 and K = 9, what is the marginal product of capital?
A. 2
B. 4
C. 6
Correct D. 8

Correct Answer: D

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Question 20
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is P = 20, what is the producer surplus?
A. 100
B. 200
Correct C. 300
D. 400

Correct Answer: C

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Question 21
The Consumer Protection Act of 1999 provides for the establishment of the National Consumer Protection Agency. What is the primary function of this agency?
A. To investigate complaints against businesses
B. To regulate the activities of consumer protection organizations
C. To provide education and awareness on consumer rights
Correct D. To enforce consumer protection laws

Correct Answer: D

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Question 22
A company uses the just-in-time inventory system to manage its stock levels. What is the primary advantage of this system?
A. Reduced inventory costs
B. Improved customer service
Correct C. Increased efficiency in production
D. Better forecasting of demand

Correct Answer: C

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Question 23
A life insurance policy has a premium of ₦10,000 per annum. The policy pays a benefit of ₦500,000 in the event of the policyholder's death. What is the probability that the policyholder will die within the next 5 years?
A. 0.05
Correct B. 0.10
C. 0.15
D. 0.20

Correct Answer: B

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Question 24
A bank offers a savings account with an interest rate of 5% per annum. The account has a minimum balance requirement of ₦10,000. What is the interest earned on a balance of ₦20,000 for 1 year?
A. ₦1,000
Correct B. ₦1,500
C. ₦2,000
D. ₦2,500

Correct Answer: B

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Question 25
A company uses the road transport mode to deliver its products. What is the primary advantage of this mode?
A. Flexibility in routing
B. Reduced transportation costs
C. Improved security of goods
Correct D. Increased speed of delivery

Correct Answer: D

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