POST UTME IGBINEDION UNIVERSITY 2021 Commerce | Objective

Are you preparing for POST UTME IGBINEDION UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2021 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
In a sole trader business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Unlimited liability
C. Easy to set up
Correct D. Flexibility in decision-making

Correct Answer: D

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Question 2
A company has a capital structure consisting of 60% equity and 40% debt. If the company's cost of equity is 12% and the cost of debt is 6%, what is the company's weighted average cost of capital (WACC)?
A. 8%
Correct B. 9%
C. 10%
D. 11%

Correct Answer: B

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Question 3
A warehouse has a storage capacity of 10,000 units. The warehouse is currently 70% full. If 500 units are added to the warehouse, what is the new percentage of capacity?
A. 60%
B. 65%
C. 70%
Correct D. 75%

Correct Answer: D

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Question 4
A consumer protection law requires that all businesses provide a 30-day cooling-off period for customers to cancel their purchases. If a customer purchases a product on January 1st and wants to cancel, what is the latest date they can cancel their purchase?
A. January 1st
B. January 15th
C. February 1st
Correct D. February 15th

Correct Answer: D

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Question 5
A bank has a reserve requirement of 10% and a cash reserve of ₦100,000. If the bank wants to increase its lending capacity, what is the maximum amount it can lend?
A. ₦500,000
B. ₦750,000
C. ₦1,000,000
Correct D. ₦1,250,000

Correct Answer: D

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Question 6
A firm's marketing strategy involves a mix of promotional activities to create awareness and stimulate demand for its products. Which of the following is NOT a characteristic of a promotional mix?
A. Product placement
B. Event marketing
C. Public relations
Correct D. Direct marketing

Correct Answer: D

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Question 7
A company's supply chain involves the movement of goods from raw materials to end customers. Which of the following is a type of transportation mode?
Correct A. Air freight
B. Rail transport
C. Pipeline transport
D. Warehousing

Correct Answer: A

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Question 8
A bank's balance sheet shows its assets, liabilities, and equity. Which of the following is a type of asset?
Correct A. Cash
B. Accounts receivable
C. Property, plant, and equipment
D. Intangible assets

Correct Answer: A

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Question 9
A firm's inventory management involves the tracking of goods in stock. Which of the following is a type of inventory control method?
A. Just-in-time inventory
Correct B. Economic order quantity
C. Materials requirements planning
D. Vendor-managed inventory

Correct Answer: B

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Question 10
A company's marketing strategy involves a mix of promotional activities to create awareness and stimulate demand for its products. Which of the following is a type of promotional mix?
Correct A. Advertising
B. Sales promotion
C. Public relations
D. Direct marketing

Correct Answer: A

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Question 11
A firm specializes in producing only one product. This specialization is an example of:
A. Economies of scale
B. Product differentiation
Correct C. Production specialization
D. Division of labor

Correct Answer: C

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Question 12
A company uses a just-in-time inventory system. This system is characterized by:
A. High inventory levels
Correct B. Low inventory levels
C. No inventory levels
D. Variable inventory levels

Correct Answer: B

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Question 13
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to increase its output by 20%, what is the required percentage increase in labor and capital?
Correct A. 10% increase in labor and 10% increase in capital
B. 20% increase in labor and 20% increase in capital
C. 30% increase in labor and 30% increase in capital
D. 40% increase in labor and 40% increase in capital

Correct Answer: A

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Question 14
A firm's revenue function is given by R = 100x - 2x^2. If the firm wants to maximize its revenue, what is the optimal level of output?
A. 10 units
Correct B. 20 units
C. 30 units
D. 40 units

Correct Answer: B

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Question 15
A firm's cost function is given by C = 50 + 2x + 0.01x^2. If the firm wants to minimize its cost, what is the optimal level of output?
A. 10 units
Correct B. 20 units
C. 30 units
D. 40 units

Correct Answer: B

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Question 16
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. What is the primary advantage of registering under CAMA?
A. Limited liability
Correct B. Increased credibility
C. Simplified tax compliance
D. Enhanced business growth

Correct Answer: B

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Question 17
A company's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If labor increases by 20% and capital remains constant, what is the percentage change in output?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 18
A firm's cost function is given by C = 100 + 2L + 3K, where C is cost, L is labor, and K is capital. If labor increases by 10% and capital remains constant, what is the percentage change in cost?
A. 5%
Correct B. 10%
C. 15%
D. 20%

Correct Answer: B

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Question 19
A company's revenue function is given by R = 1000 + 20L, where R is revenue and L is labor. If labor increases by 20%, what is the percentage change in revenue?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 20
A firm's profit function is given by \pi = R - C, where \pi is profit, R is revenue, and C is cost. If revenue increases by 10% and cost remains constant, what is the percentage change in profit?
A. 5%
Correct B. 10%
C. 15%
D. 20%

Correct Answer: B

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Question 21
The concept of risk management in insurance involves identifying and assessing potential risks, then developing strategies to mitigate or transfer them. Which of the following is NOT a type of risk management strategy?
A. Avoidance
B. Transfer
C. Mitigation
Correct D. Acceptance

Correct Answer: D

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Question 22
In the context of production and specialization, which of the following is an example of a comparative advantage?
A. A country producing more of a good than another country
Correct B. A country producing a good at a lower opportunity cost than another country
C. A country producing a good at a higher opportunity cost than another country
D. A country producing a good at the same opportunity cost as another country

Correct Answer: B

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Question 23
A bank's primary function is to act as a financial intermediary between savers and borrowers. Which of the following is NOT a type of financial intermediary?
A. Commercial bank
B. Investment bank
C. Central bank
Correct D. Insurance company

Correct Answer: D

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Question 24
In the context of home and foreign trade, which of the following is an example of a trade barrier?
A. Tariff
Correct B. Quota
C. Subsidy
D. Export promotion

Correct Answer: B

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Question 25
The concept of specialization in production involves dividing labor among workers to increase efficiency. Which of the following is an example of a benefit of specialization?
Correct A. Increased productivity
B. Improved quality
C. Reduced costs
D. Increased employment

Correct Answer: A

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