POST UTME FUTA 2025 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 2025 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
In a just-in-time (JIT) inventory system, what is the primary goal of the reorder point?
A. To minimize inventory costs
B. To maximize inventory turnover
Correct C. To ensure that stockouts are avoided
D. To reduce lead times

Correct Answer: C

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Question 2
A company has a warehouse with a capacity of 10,000 units. The current stock level is 5,000 units, and the reorder point is 8,000 units. If the lead time is 5 days, and the demand rate is 1,000 units per day, what is the optimal order quantity?
Correct A. 6,000 units
B. 8,000 units
C. 10,000 units
D. 12,000 units

Correct Answer: A

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Question 3
A bank offers a 5-year fixed deposit account with an interest rate of 10% per annum compounded annually. If the principal amount is ₦100,000, what is the future value of the investment after 5 years?
Correct A. ₦163,922.78
B. ₦164,922.78
C. ₦165,922.78
D. ₦166,922.78

Correct Answer: A

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Question 4
A company is considering two marketing strategies: a 4% increase in advertising expenditure or a 2% increase in sales promotion expenditure. If the current advertising expenditure is ₦500,000 and the current sales promotion expenditure is ₦200,000, what is the total increase in marketing expenditure if the company chooses the first strategy?
A. ₦2,000
Correct B. ₦4,000
C. ₦6,000
D. ₦8,000

Correct Answer: B

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Question 5
A country has a trade deficit of 100 million and a trade surplus of 50 million with its trading partners. What is the net trade balance?
Correct A. -50 million
B. -100 million
C. 0
D. 50 million

Correct Answer: A

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Question 6
A firm's revenue is given by the equation R(x) = 2x^2 + 5x + 1, where x is the number of units sold. If the firm's cost function is C(x) = x^2 + 2x + 1, what is the profit function P(x)?
Correct A. x^2 + 3x
B. 2x^2 + 3x
C. x^2 - 3x
D. 2x^2 - 3x

Correct Answer: A

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Question 7
A company's stock is currently priced at ₦120 per share. If the company declares a 20% dividend, what is the new stock price?
Correct A. ₦144
B. ₦128
C. ₦112
D. ₦96

Correct Answer: A

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Question 8
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm has 100 units of labor and 100 units of capital, what is the quantity produced?
Correct A. 200
B. 250
C. 300
D. 400

Correct Answer: A

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Question 9
A company's revenue is given by the equation R(x) = 3x^2 - 2x + 1, where x is the number of units sold. If the company's cost function is C(x) = x^2 + x + 1, what is the profit function P(x)?
Correct A. 2x^2 - 3x
B. 3x^2 - 3x
C. 2x^2 + 3x
D. 3x^2 + 3x

Correct Answer: A

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Question 10
A firm's production function is given by Q = 3L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm has 100 units of labor and 100 units of capital, what is the quantity produced?
Correct A. 300
B. 250
C. 200
D. 150

Correct Answer: A

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Question 11
A sole trader's business is considered a separate legal entity from its owner. However, the owner is personally liable for all business debts and obligations. What is the name of this type of business organization?
Correct A. Sole Proprietorship
B. Partnership
C. Limited Liability Company
D. Cooperative

Correct Answer: A

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Question 12
A company's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. What is the primary goal of a USP?
A. To increase market share
B. To reduce production costs
Correct C. To create a unique selling proposition
D. To improve customer satisfaction

Correct Answer: C

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Question 13
A business owner wants to insure against the risk of fire damage to her warehouse. What type of insurance policy would she purchase?
Correct A. Fire insurance
B. Liability insurance
C. Business interruption insurance
D. Property insurance

Correct Answer: A

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Question 14
A company's inventory management system uses a just-in-time (JIT) approach to minimize inventory levels. What is the primary benefit of JIT?
Correct A. Reduced inventory costs
B. Improved product quality
C. Increased production efficiency
D. Enhanced customer satisfaction

Correct Answer: A

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Question 15
A business owner wants to expand her operations to a new location. What type of business organization would she need to form to achieve this?
A. Sole proprietorship
B. Partnership
C. Limited liability company
Correct D. Corporation

Correct Answer: D

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Question 16
A company's marketing strategy involves creating a sense of urgency among customers to purchase a product. This strategy is an example of which of the following?
A. Scarcity principle
Correct B. Limited-time offer
C. Loss aversion
D. Endowment effect

Correct Answer: B

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Question 17
A sole trader's business is registered under which of the following?
A. Partnership
B. Company
Correct C. Sole trader
D. Limited liability partnership

Correct Answer: C

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Question 18
A company's financial statements include a balance sheet, income statement, and cash flow statement. Which of the following is the primary purpose of the balance sheet?
A. To show the company's profitability
B. To show the company's liquidity
Correct C. To show the company's financial position at a specific point in time
D. To show the company's cash flows

Correct Answer: C

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Question 19
A consumer protection law requires businesses to provide clear and accurate information about their products. Which of the following is an example of a consumer protection law?
Correct A. Consumer Protection Act
B. Fair Trading Act
C. Health and Safety at Work Act
D. Data Protection Act

Correct Answer: A

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Question 20
A company's marketing strategy involves creating a sense of exclusivity among customers to purchase a product. This strategy is an example of which of the following?
A. Scarcity principle
B. Limited-time offer
Correct C. Exclusivity principle
D. Loss aversion

Correct Answer: C

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Question 21
The concept of 'caveat emptor' is most closely associated with which of the following business units?
Correct A. Sole Trade
B. Partnership
C. Limited Liability Company
D. Cooperative Society

Correct Answer: A

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Question 22
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 100 units, and the number of workers (L) is 25, what is the value of the capital stock (K)?
A. 25
B. 50
Correct C. 100
D. 200

Correct Answer: C

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Question 23
A consumer has a budget of ₦10,000 and a preference for two goods, A and B. The prices of the goods are ₦2,000 and ₦3,000 respectively. If the consumer spends all their budget on the two goods, what is the maximum amount they can spend on good A?
A. ₦4,000
Correct B. ₦5,000
C. ₦6,000
D. ₦7,000

Correct Answer: B

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Question 24
A firm's cost function is given by C = 2L + 3K. If the firm's output is 100 units, and the number of workers (L) is 25, what is the value of the capital stock (K)?
A. 25
B. 50
Correct C. 100
D. 200

Correct Answer: C

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Question 25
A consumer has a utility function given by U = 2A + 3B. If the prices of the goods are ₦2,000 and ₦3,000 respectively, and the consumer spends all their budget on the two goods, what is the maximum amount they can spend on good A?
A. ₦4,000
Correct B. ₦5,000
C. ₦6,000
D. ₦7,000

Correct Answer: B

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