POST UTME IMS U 2017 Commerce | Objective

Are you preparing for POST UTME IMS U exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader's business is registered under which of the following?
A. Partnership
B. Limited Liability Company
Correct C. Sole Proprietorship
D. Cooperative Society

Correct Answer: C

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Question 2
A company's financial year ends on 31st December. What is the accounting period?
Correct A. 1st January to 31st December
B. 1st January to 31st March
C. 1st April to 31st March
D. 1st June to 31st May

Correct Answer: A

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Question 3
A bank's cash reserve ratio is 20%. If the bank has a cash reserve of ₦100,000, what is the maximum amount it can lend?
A. ₦400,000
Correct B. ₦500,000
C. ₦600,000
D. ₦800,000

Correct Answer: B

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Question 4
A company imports goods worth 10,000 from a foreign country. If the exchange rate is 1 USD = ₦500, what is the value of the goods in naira?
A. ₦5,000,000
Correct B. ₦5,500,000
C. ₦6,000,000
D. ₦6,500,000

Correct Answer: B

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Question 5
A company's stockout rate is 10%. If the company sells 1,000 units per day, how many units will it stockout?
Correct A. 100 units
B. 200 units
C. 300 units
D. 400 units

Correct Answer: A

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Question 6
In a sole trade business, the owner's personal and business finances are not separate. What is the primary advantage of this type of business?
Correct A. Easy setup and registration
B. Separate personal and business finances
C. Flexibility in decision-making
D. Increased tax benefits

Correct Answer: A

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Question 7
A company has 100,000 shares outstanding, and the market price per share is ₦10. What is the total market value of the company's shares?
A. ₦1,000,000
B. ₦10,000,000
Correct C. ₦100,000,000
D. ₦1,000,000,000

Correct Answer: C

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Question 8
A foreign trade agreement between two countries involves the exchange of goods and services. What is the primary benefit of this type of agreement?
A. Increased competition
Correct B. Reduced trade barriers
C. Improved economic growth
D. Increased unemployment

Correct Answer: B

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Question 9
A marketing strategy involves creating a unique selling proposition (USP) to differentiate a product from competitors. What is the primary goal of this strategy?
A. Increase market share
B. Reduce production costs
C. Improve product quality
Correct D. Differentiate the product from competitors

Correct Answer: D

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Question 10
A bank's primary function is to act as a financial intermediary between savers and borrowers. What is the primary benefit of this function?
A. Increased interest rates
B. Reduced transaction costs
Correct C. Improved liquidity
D. Increased risk

Correct Answer: C

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Question 11
A company specializes in producing high-quality textiles. It has two production lines: one for cotton fabrics and the other for synthetic fabrics. The company uses the following production costs per unit:
Correct A. ₦1500 for cotton fabrics and ₦1200 for synthetic fabrics
B. ₦1200 for cotton fabrics and ₦1500 for synthetic fabrics
C. ₦1800 for cotton fabrics and ₦1000 for synthetic fabrics
D. ₦1000 for cotton fabrics and ₦1800 for synthetic fabrics

Correct Answer: A

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Question 12
A firm has two warehouses: Warehouse A and Warehouse B. Warehouse A has a capacity of 1000 units, and Warehouse B has a capacity of 500 units. The firm has 1200 units of stock. If it wants to store the stock in the two warehouses, what is the minimum number of trips required to transport the stock?
A. 3 trips
Correct B. 4 trips
C. 5 trips
D. 6 trips

Correct Answer: B

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Question 13
A company has a production process that involves three stages: cutting, sewing, and packaging. The cutting stage takes 2 hours, the sewing stage takes 3 hours, and the packaging stage takes 1 hour. If the company wants to produce 1000 units, how many hours will it take to complete the production process?
A. 6 hours
B. 8 hours
Correct C. 10 hours
D. 12 hours

Correct Answer: C

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Question 14
A firm has a warehouse with a capacity of 2000 units. The firm has 1500 units of stock. If it wants to store the stock in the warehouse, what is the maximum number of units that can be stored?
A. 1500 units
Correct B. 2000 units
C. 2500 units
D. 3000 units

Correct Answer: B

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Question 15
A company has a production process that involves two stages: cutting and sewing. The cutting stage takes 2 hours, and the sewing stage takes 3 hours. If the company wants to produce 500 units, how many hours will it take to complete the production process?
A. 5 hours
Correct B. 6 hours
C. 7 hours
D. 8 hours

Correct Answer: B

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Question 16
A firm has a warehouse with a capacity of 1000 units. The firm has 800 units of stock. If it wants to store the stock in the warehouse, what is the maximum number of units that can be stored?
A. 800 units
Correct B. 1000 units
C. 1200 units
D. 1500 units

Correct Answer: B

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Question 17
A company has a production process that involves three stages: cutting, sewing, and packaging. The cutting stage takes 2 hours, the sewing stage takes 3 hours, and the packaging stage takes 1 hour. If the company wants to produce 2000 units, how many hours will it take to complete the production process?
A. 6 hours
B. 8 hours
Correct C. 10 hours
D. 12 hours

Correct Answer: C

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Question 18
A firm has a warehouse with a capacity of 500 units. The firm has 300 units of stock. If it wants to store the stock in the warehouse, what is the maximum number of units that can be stored?
A. 300 units
Correct B. 500 units
C. 700 units
D. 800 units

Correct Answer: B

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Question 19
A company has a production process that involves two stages: cutting and sewing. The cutting stage takes 2 hours, and the sewing stage takes 3 hours. If the company wants to produce 1000 units, how many hours will it take to complete the production process?
A. 5 hours
Correct B. 6 hours
C. 7 hours
D. 8 hours

Correct Answer: B

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Question 20
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost compared to other countries. Which of the following is a correct example of comparative advantage?
Correct A. Nigeria producing cotton and importing textiles
B. Nigeria producing textiles and importing cotton
C. Nigeria producing both cotton and textiles
D. Nigeria importing both cotton and textiles

Correct Answer: A

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Question 21
A firm's break-even point is the point at which its total revenue equals its total fixed and variable costs. What is the break-even point formula?
Correct A. TR = TFC + TVC
B. TR = TFC - TVC
C. TR = TVC - TFC
D. TR = TFC + TVC + Profit

Correct Answer: A

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Question 22
A warehouse manager wants to store 500 boxes of goods in a warehouse with a capacity of 2000 boxes. If the warehouse is already 75% full, how many more boxes can be stored?
A. 125
Correct B. 150
C. 175
D. 200

Correct Answer: B

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Question 23
A bank customer deposits ₦100,000 into a savings account with an interest rate of 5% per annum compounded annually. What is the amount in the account after 2 years?
Correct A. ₦110,250
B. ₦110,500
C. ₦110,750
D. ₦111,000

Correct Answer: A

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Question 24
A consumer protection agency receives a complaint from a customer who was sold a defective product. The agency finds that the product was indeed defective and that the seller had knowledge of the defect. What is the agency's next course of action?
A. Issue a warning to the seller
B. Impose a fine on the seller
Correct C. Compensate the customer for the defective product
D. Close the seller's business

Correct Answer: C

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Question 25
A foreign trade agreement between two countries involves the exchange of goods worth 100,000. If the exchange rate is 1 USD = 360 Naira, what is the equivalent value in Naira?
Correct A. ₦36,000,000
B. ₦36,100,000
C. ₦36,200,000
D. ₦36,300,000

Correct Answer: A

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