POST UTME KSU 2017 Commerce | Objective

Are you preparing for POST UTME KSU 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.

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Question 1
A company's financial statements are audited annually by an independent auditor. The auditor's report is based on the audit evidence obtained from the company's records and other relevant information. Which of the following is a limitation of the auditor's report?
Correct A. The auditor's report may not reflect the company's true financial position.
B. The auditor's report may not be based on the company's actual transactions.
C. The auditor's report may not be relevant to the company's future financial performance.
D. The auditor's report may not be based on the company's accounting policies.

Correct Answer: A

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Question 2
A sole trader's business is registered with the Corporate Affairs Commission (CAC). The CAC issues a certificate of registration to the sole trader. What is the purpose of the certificate of registration?
A. To prove the sole trader's identity.
B. To verify the sole trader's business name.
Correct C. To confirm the sole trader's business registration.
D. To obtain a tax clearance certificate.

Correct Answer: C

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Question 3
A company's marketing strategy involves creating a brand identity that appeals to a specific target market. The company uses a combination of advertising and public relations to promote its products. What is the primary goal of the company's marketing strategy?
A. To increase sales revenue.
Correct B. To build brand awareness.
C. To create a positive image of the company.
D. To reduce production costs.

Correct Answer: B

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Question 4
A life insurance policy is taken out by an individual to provide financial protection for their dependents in the event of their death. The policy pays out a lump sum to the beneficiaries upon the policyholder's death. What is the primary purpose of the life insurance policy?
Correct A. To provide financial protection for the policyholder's dependents.
B. To save for the policyholder's retirement.
C. To invest in the policyholder's business.
D. To reduce the policyholder's tax liability.

Correct Answer: A

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Question 5
A company's financial statements are prepared in accordance with the Generally Accepted Accounting Principles (GAAP). The company's auditor reviews the financial statements to ensure that they are presented fairly and in accordance with the GAAP. What is the primary responsibility of the auditor?
A. To prepare the financial statements.
B. To review the financial statements.
Correct C. To audit the financial statements.
D. To certify the financial statements.

Correct Answer: C

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Question 6
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing opportunity costs. However, this law is not applicable in the case of a firm that produces a homogeneous product. Explain why.
Correct A. Because the firm is a price-taker and has no control over the market price.
B. Because the firm is a price-maker and can influence the market price.
C. Because the firm is a monopolist and has a downward-sloping demand curve.
D. Because the firm is a monopsonist and has a downward-sloping supply curve.

Correct Answer: A

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Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, calculate the firm's current output.
A. 24
B. 36
Correct C. 48
D. 60

Correct Answer: C

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Question 8
A consumer's indifference curve is given by the equation U = 2x + 3y. If the consumer's current budget constraint is 2x + 3y = 12, find the consumer's optimal consumption bundle.
Correct A. (2, 4)
B. (4, 2)
C. (6, 0)
D. (0, 6)

Correct Answer: A

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Question 9
A firm's cost function is given by C = 2L + 3K. If the firm's current labor and capital inputs are L = 4 and K = 6, respectively, calculate the firm's current total cost.
A. 20
B. 30
Correct C. 40
D. 50

Correct Answer: C

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Question 10
A consumer's budget constraint is given by the equation 2x + 3y = 12. If the consumer's current income is ₦1200, find the consumer's optimal consumption bundle.
Correct A. (2, 4)
B. (4, 2)
C. (6, 0)
D. (0, 6)

Correct Answer: A

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Question 11
In a competitive market, a firm's demand curve is downward sloping. What is the likely effect on the firm's total revenue if the price of the product increases?
A. Total revenue increases
Correct B. Total revenue decreases
C. Total revenue remains constant
D. Total revenue increases at first, then decreases

Correct Answer: B

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Question 12
A consumer purchases a product that has a price of ₦500. The consumer's budget is ₦1000. What is the maximum quantity of the product the consumer can purchase?
A. 2 units
Correct B. 3 units
C. 4 units
D. 5 units

Correct Answer: B

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Question 13
A firm's cost function is given by C(x) = 2x^2 + 3x + 1. What is the marginal cost function?
Correct A. 4x + 3
B. 2x + 1
C. x^2 + 3x
D. 2x^2 + 3

Correct Answer: A

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Question 14
A consumer's indifference curve is given by the equation u(x,y) = x^2 + 2y^2. What is the slope of the indifference curve at the point (2,3)?
A. 4
Correct B. 2
C. 1
D. -1

Correct Answer: B

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Question 15
A firm's revenue function is given by R(x) = 2x^2 + 3x. What is the rate of change of revenue with respect to output when x = 2?
A. 13
Correct B. 15
C. 17
D. 19

Correct Answer: B

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Question 16
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. Which of the following is a correct example of comparative advantage?
A. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
B. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 150 units of cloth.
Correct C. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 150 units of wheat and 50 units of cloth.
D. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 50 units of cloth.

Correct Answer: C

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Question 17
A company has a 10% dividend yield on its shares. If the current market price of the share is ₦100, what is the expected dividend per share?
Correct A. ₦10
B. ₦5
C. ₦1
D. ₦0.50

Correct Answer: A

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Question 18
A firm has a production function given by Q = 2L^0.5K^0.5. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, what is the optimal level of labor and capital to minimize the cost of production?
A. L = 100, K = 100
B. L = 50, K = 200
C. L = 200, K = 50
Correct D. L = 100, K = 50

Correct Answer: D

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Question 19
A company has a 5% annual growth rate in sales. If the current sales revenue is ₦1 million, what will be the sales revenue 5 years from now?
A. ₦1.5 million
B. ₦2 million
C. ₦2.5 million
Correct D. ₦3 million

Correct Answer: D

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Question 20
A firm has a cost function given by C = 2L + 3K. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, what is the optimal level of labor and capital to minimize the cost of production?
A. L = 50, K = 100
Correct B. L = 100, K = 50
C. L = 200, K = 25
D. L = 25, K = 200

Correct Answer: B

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Question 21
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?
A. Country A producing 100 units of wheat and 50 units of cloth
B. Country B producing 50 units of wheat and 100 units of cloth
Correct C. Country A producing 50 units of wheat and 100 units of cloth
D. Country B producing 100 units of wheat and 50 units of cloth

Correct Answer: C

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Question 22
A firm has the following production function: Q = 2L + 3K, where Q is the output, L is the labor, and K is the capital. If the firm wants to produce 20 units of output, how many units of labor and capital are required?
Correct A. L = 5, K = 3
B. L = 3, K = 5
C. L = 4, K = 4
D. L = 6, K = 2

Correct Answer: A

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Question 23
A company has the following balance sheet: Assets = ₦100,000, Liabilities = ₦50,000, and Equity = ₦50,000. What is the company's debt-to-equity ratio?
A. 1:1
Correct B. 2:1
C. 1:2
D. 3:1

Correct Answer: B

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Question 24
A firm is considering two investment projects: Project A with a 5-year payback period and Project B with a 7-year payback period. Which project is more attractive?
Correct A. Project A
B. Project B
C. Both projects are equally attractive
D. Neither project is attractive

Correct Answer: A

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Question 25
A company has the following income statement: Revenue = ₦200,000, Cost of Goods Sold = ₦100,000, and Gross Profit = ₦50,000. What is the company's gross margin percentage?
Correct A. 25%
B. 30%
C. 35%
D. 40%

Correct Answer: A

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