Practice Post UTME GREENFIELD UNIVERSITY commerce 2025 Past Questions

Question 1

In a consumer protection scenario, a company is liable for damages caused by a defective product. However, the company claims that the product was modified by the consumer, which led to the defect. What principle of law would the court likely apply to determine liability?

A. Principle of Caveat Emptor

Correct B. Principle of Strict Liability

C. Principle of Modified Product

D. Principle of Consumer Negligence

Correct Answer: B

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Question 2

A company has a warehouse with a capacity of 10,000 units. The company receives an order for 8,000 units, but the supplier only delivers 6,000 units. What is the warehouse's stock level?

A. 8000

Correct B. 6000

C. 10000

D. 4000

Correct Answer: B

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Question 3

A company uses a marketing strategy that involves creating a sense of urgency to encourage customers to make a purchase. This strategy is an example of which type of marketing tactic?

Correct A. Scarcity Marketing

B. Loss Aversion Marketing

C. Social Proof Marketing

D. Authority Marketing

Correct Answer: A

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Question 4

A company has a warehouse with a capacity of 10,000 units. The company receives an order for 8,000 units, but the supplier only delivers 6,000 units. What is the warehouse's stock level?

A. 8000

Correct B. 6000

C. 10000

D. 4000

Correct Answer: B

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Question 5

A company uses a marketing strategy that involves creating a sense of urgency to encourage customers to make a purchase. This strategy is an example of which type of marketing tactic?

Correct A. Scarcity Marketing

B. Loss Aversion Marketing

C. Social Proof Marketing

D. Authority Marketing

Correct Answer: A

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Question 6

A company is considering two production methods for its new product: Method A, which requires an initial investment of ₦1,500,000 and produces 10,000 units per month, or Method B, which requires an initial investment of ₦2,000,000 and produces 15,000 units per month. If the company expects to sell each unit for ₦500, which method should it choose?

A. Method A

Correct B. Method B

C. Both methods are equally profitable

D. Neither method is profitable

Correct Answer: B

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Question 7

A firm is considering two marketing strategies for its new product: Strategy A, which involves a high level of advertising and promotion, or Strategy B, which involves a low level of advertising and promotion. If the firm expects to sell 10,000 units per month at a price of ₦500 per unit, which strategy should it choose?

Correct A. Strategy A

B. Strategy B

C. Both strategies are equally effective

D. Neither strategy is effective

Correct Answer: A

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Question 8

A company has the following insurance policy: a deductible of ₦50,000 and a maximum payout of ₦200,000. If the company suffers a loss of ₦300,000, what is the amount that the insurance company will pay?

A. ₦150,000

Correct B. ₦200,000

C. ₦250,000

D. ₦300,000

Correct Answer: B

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Question 9

A firm is considering two export strategies for its new product: Strategy A, which involves exporting to a country with a high tariff rate, or Strategy B, which involves exporting to a country with a low tariff rate. If the firm expects to sell 10,000 units per month at a price of ₦500 per unit, which strategy should it choose?

A. Strategy A

Correct B. Strategy B

C. Both strategies are equally effective

D. Neither strategy is effective

Correct Answer: B

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Question 10

A company has the following transportation costs: a fixed cost of ₦50,000 per month and a variable cost of ₦100 per unit transported. If the company expects to transport 10,000 units per month, what is the total transportation cost?

A. ₦1,000,000

Correct B. ₦1,050,000

C. ₦1,100,000

D. ₦1,150,000

Correct Answer: B

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Question 11

In a perfectly competitive market, the law of diminishing marginal utility leads to a decrease in the marginal revenue product of a firm's inputs. What is the effect on the firm's production level?

A. Increase

Correct B. Decrease

C. No change

D. Irrelevant

Correct Answer: B

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Question 12

A firm's production function is given by Q = 2L^0.5 + 3K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?

A. 5%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 13

A consumer's indifference curve is given by the equation u(x,y) = 2x + 3y. If the consumer's income is 100 and the prices of x and y are 5 and 10 respectively, what is the consumer's optimal bundle?

A. (10,20)

Correct B. (15,15)

C. (20,10)

D. (25,5)

Correct Answer: B

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Question 14

A firm's cost function is given by C(L,K) = 2L + 3K. If the firm's labor and capital inputs are 10 and 5 respectively, what is the firm's total cost?

A. ₦50

Correct B. ₦60

C. ₦70

D. ₦80

Correct Answer: B

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Question 15

A consumer's budget constraint is given by the equation 2x + 3y = 100. If the consumer's income is 100 and the prices of x and y are 5 and 10 respectively, what is the consumer's optimal bundle?

A. (10,20)

Correct B. (15,15)

C. (20,10)

D. (25,5)

Correct Answer: B

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Question 16

A company is considering the introduction of a new product line. The product line has a high fixed cost of ₦5 million and a variable cost of ₦200 per unit. The selling price of the product is ₦300 per unit. If the company expects to sell 10,000 units, what is the minimum price at which the product should be sold to break even?

A. ₦250 per unit

Correct B. ₦275 per unit

C. ₦300 per unit

D. ₦325 per unit

Correct Answer: B

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Question 17

A sole trader, Mr. A, has the following transactions for the month of January: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1st | Cash | ₦10,000 | | | 5th | Goods sold | | ₦15,000 | | 10th | Rent | ₦5,000 | | | 15th | Cash | ₦20,000 | | | 20th | Goods purchased | ₦8,000 | | | 25th | Cash | ₦15,000 | | | 31st | Goods sold | | ₦20,000 | What is the total profit for the month of January?

A. ₦25,000

B. ₦30,000

Correct C. ₦35,000

D. ₦40,000

Correct Answer: C

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Question 18

A company uses the weighted average method to value its inventory. The following information is available: | Date | Description | Quantity | Unit Cost | Total Cost | | --- | --- | --- | --- | --- | | 1st | Goods received | 100 | ₦10 | ₦1,000 | | 5th | Goods received | 200 | ₦12 | ₦2,400 | | 10th | Goods received | 300 | ₦15 | ₦4,500 | | 15th | Goods sold | | | | What is the total cost of goods sold for the month?

A. ₦8,000

Correct B. ₦8,500

C. ₦9,000

D. ₦9,500

Correct Answer: B

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Question 19

A company has the following information regarding its marketing efforts: | Channel | Cost | Revenue | | --- | --- | --- | | Social media | ₦50,000 | ₦100,000 | | Email marketing | ₦20,000 | ₦40,000 | | Print advertising | ₦30,000 | ₦60,000 | What is the return on investment (ROI) for the company's marketing efforts?

A. 200%

B. 250%

Correct C. 300%

D. 350%

Correct Answer: C

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Question 20

A company has the following information regarding its insurance premiums: | Policy | Premium | Deductible | | --- | --- | --- | | Liability | ₦50,000 | ₦10,000 | | Property | ₦30,000 | ₦5,000 | | Workers' compensation | ₦20,000 | ₦2,000 | What is the total insurance premium for the company?

A. ₦100,000

B. ₦110,000

Correct C. ₦120,000

D. ₦130,000

Correct Answer: C

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Question 21

A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases its labor input from 100 to 121 units, and its capital input from 100 to 121 units, by how much will its quantity produced increase?

A. 10

Correct B. 20

C. 30

D. 40

Correct Answer: B

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Question 22

A firm's revenue function is given by R(x) = 2x^2 + 5x - 3, where x is the number of units sold. If the firm sells 5 units, what is its revenue?

A. 27

Correct B. 32

C. 37

D. 42

Correct Answer: B

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Question 23

A company's cost function is given by C(x) = 3x^2 + 2x - 1, where x is the number of units produced. If the company produces 4 units, what is its cost?

A. 25

B. 30

Correct C. 35

D. 40

Correct Answer: C

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Question 24

A firm's profit function is given by P(x) = R(x) - C(x), where R(x) is the revenue function and C(x) is the cost function. If the firm sells 5 units and produces 4 units, what is its profit?

A. 10

B. 15

Correct C. 20

D. 25

Correct Answer: C

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Question 25

A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases its labor input from 100 to 121 units, and its capital input from 100 to 121 units, by how much will its quantity produced increase?

A. 10

Correct B. 20

C. 30

D. 40

Correct Answer: B

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