POST UTME KSU 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm specializes in producing a single product, and its production function is given by the equation ( Q = 100L^0.5K^0.25 ), where Q is the quantity produced, L is labor, and K is capital. If the firm wants to produce 400 units of the product, and it has 16 units of labor and 25 units of capital, what is the minimum amount of capital it needs to produce 400 units?
A. 10
B. 15
C. 20
D. 25
Question 2
A firm's warehousing and stock control system involves the use of a first-in-first-out (FIFO) inventory management method. What is the primary advantage of this method?
A. Reduced storage costs
B. Improved inventory turnover
C. Enhanced customer satisfaction
D. Increased product quality
Question 3
A company issues 1,000 shares of common stock at a price of ₦50 per share. If the company has a total of 5,000 shares outstanding, what is the total amount of cash received from the issuance of common stock?
A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000
Question 4
Under the Consumer Protection Act, what is the primary responsibility of a consumer in a dispute with a supplier?
A. To prove that the product was defective
B. To prove that the supplier was negligent
C. To prove that the product was not as described
D. To prove that the supplier was not licensed
Question 5
A company's home and foreign trade activities involve the export of goods to a foreign country. What is the primary benefit of this activity?
A. Increased revenue
B. Improved market share
C. Enhanced brand reputation
D. Reduced production costs
Question 6
A company wants to import goods from a foreign country. The company has the following information: the cost of the goods is 10,000, the shipping cost is 2,000, and the customs duty is 10% of the cost of the goods. What is the total cost of importing the goods?
A. 12,000
B. 12,500
C. 13,000
D. 13,500
Question 7
A company issues a promissory note to a bank with a face value of ₦100,000. If the interest rate is 10% per annum, compounded annually, what is the amount due after 2 years?
A. ₦121,000
B. ₦122,000
C. ₦123,000
D. ₦124,000
Question 8
A sole trader's business is affected by the following factors: market conditions, government policies, and consumer behavior. Which of the following is NOT a factor that affects a sole trader's business?
A. Market conditions
B. Government policies
C. Consumer behavior
D. Weather conditions
Question 9
A bank offers a loan to a customer at an interest rate of 12% per annum. The customer repays the loan in equal installments over a period of 5 years. The total interest paid by the customer over the 5-year period is approximately?
A. ₦12,000
B. ₦15,000
C. ₦18,000
D. ₦20,000
Question 10
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
B. Limited-time offer
C. Free gift
D. Discount
Question 11
A firm is considering exporting its products to a foreign market. The firm has estimated the following costs associated with exporting: transportation costs of ₦100,000, insurance costs of ₦50,000, and marketing costs of ₦200,000. If the firm expects to earn a profit of ₦500,000 from the export, what is the minimum price it should charge for its product?
A. ₦1,250,000
B. ₦1,500,000
C. ₦1,750,000
D. ₦2,000,000
Question 12
A firm's marketing strategy involves the use of social media platforms to promote its products. What is the primary advantage of this approach?
A. Increased brand awareness
B. Improved customer engagement
C. Enhanced product visibility
D. Reduced marketing costs
Question 13
A firm wants to produce a new product using a combination of labor and capital. The production function is given by the equation ( Q = 2L^0.5K^0.25 ), where Q is the quantity produced, L is labor, and K is capital. If the firm wants to produce 16 units of the product, and it has 4 units of labor and 9 units of capital, what is the minimum amount of capital it needs to produce 16 units?
A. 3
B. 4
C. 5
D. 6
Question 14
A company is considering exporting its products to a foreign market. What is the primary advantage of exporting products?
A. Increased revenue
B. Reduced competition
C. Improved brand image
D. Access to new markets
Question 15
A sole trader's business is affected by the following factors: market conditions, government policies, and consumer behavior. Which of the following is NOT a factor that affects a sole trader's business?
A. Market conditions
B. Government policies
C. Consumer behavior
D. Weather conditions

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