POST UTME LASU 2020 Commerce | Objective

Are you preparing for POST UTME LASU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
The concept of risk management in insurance is closely related to the idea of
Correct A. hedging
B. speculation
C. diversification
D. reinsurance

Correct Answer: A

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Question 2
The diagram below shows a typical example of a
A. bus
B. train
Correct C. car
D. airplane

Correct Answer: C

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Question 3
The formula for calculating the present value of a future sum of money is given by
Correct A. PV = \frac{F}{(1 + r)^n}
B. PV = F - (1 + r)^n
C. PV = \frac{F}{(1 + r)^{-n}}
D. PV = F + (1 + r)^n

Correct Answer: A

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Question 4
The diagram below shows a typical example of a
A. checking account
Correct B. savings account
C. credit card
D. loan

Correct Answer: B

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Question 5
The concept of consumer protection is closely related to the idea of
A. product liability
Correct B. consumer rights
C. product safety
D. product warranty

Correct Answer: B

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Question 6
In a sole proprietorship business, the owner's personal assets are protected from business liabilities through a legal concept known as _______.
A. Separate Entity
Correct B. Limited Liability
C. Joint Venture
D. Partnership

Correct Answer: B

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Question 7
A company's articles of association may be amended by a _______ majority of shareholders.
A. Simple
Correct B. Special
C. Ordinary
D. Extraordinary

Correct Answer: B

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Question 8
The _______ of a company refers to the process of buying back its own shares from the market.
A. Redemption
B. Reinstatement
C. Reconstruction
Correct D. Repurchase

Correct Answer: D

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Question 9
A _______ is a type of insurance policy that provides financial protection against the loss of income due to illness or injury.
A. Life Insurance
B. Health Insurance
Correct C. Disability Insurance
D. Accident Insurance

Correct Answer: C

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Question 10
The _______ of a contract refers to the agreement between two or more parties to perform certain obligations.
A. Consideration
B. Capacity
C. Intention
Correct D. Consent

Correct Answer: D

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Question 11
In a perfectly competitive market, the demand curve for a firm's product is its
Correct A. marginal revenue curve
B. marginal cost curve
C. average revenue curve
D. average cost curve

Correct Answer: A

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Question 12
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current capital stock is 16 units and labor is 9 units, what is the maximum output?
A. 24
Correct B. 36
C. 48
D. 64

Correct Answer: B

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Question 13
A company has a market share of 30% in a particular industry. If the industry's total sales are ₦1,200,000, what is the company's revenue?
Correct A. ₦360,000
B. ₦400,000
C. ₦450,000
D. ₦500,000

Correct Answer: A

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Question 14
A firm's cost function is given by C = 2L + 3K. If the firm's current labor is 6 units and capital is 8 units, what is the total cost?
A. 30
B. 40
Correct C. 50
D. 60

Correct Answer: C

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Question 15
A company's profit function is given by π = 20Q - 2L - 3K. If the company's current output is 10 units, labor is 4 units, and capital is 6 units, what is the profit?
A. 80
B. 100
Correct C. 120
D. 140

Correct Answer: C

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Question 16
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. decrease
Correct B. increase
C. remain constant
D. fluctuate

Correct Answer: B

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Question 17
A firm's revenue is the total amount of money received from the sale of its products or services. If a firm sells 100 units of a product at ₦50 each, its total revenue is
A. ₦5000
Correct B. ₦50000
C. ₦500000
D. ₦5000000

Correct Answer: B

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Question 18
The diagram below shows a firm's supply curve. If the price of the commodity increases from ₦20 to ₦30, the quantity supplied will
Correct A. increase
B. decrease
C. remain constant
D. fluctuate

Correct Answer: A

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Question 19
A firm's cost of production is the total amount of money spent in producing a product or service. If a firm spends ₦1000 on raw materials and ₦500 on labor, its total cost of production is
A. ₦500
B. ₦1000
Correct C. ₦1500
D. ₦2000

Correct Answer: C

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Question 20
The diagram below shows a firm's demand curve. If the price of the commodity decreases from ₦30 to ₦20, the quantity demanded will
Correct A. increase
B. decrease
C. remain constant
D. fluctuate

Correct Answer: A

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Question 21
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are 16 and 9 units respectively, what is the firm's output?
A. 32
Correct B. 64
C. 128
D. 256

Correct Answer: B

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Question 22
A company's marketing strategy involves a 20% discount on all products for the first 100 customers. If the original price of each product is ₦500, what is the total revenue for the first 100 customers?
A. ₦45,000
Correct B. ₦50,000
C. ₦55,000
D. ₦60,000

Correct Answer: B

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Question 23
A firm's cost function is given by C = 2L + 3K, where C is cost, L is labor, and K is capital. If the firm's labor and capital inputs are 10 and 5 units respectively, what is the firm's total cost?
A. ₦35
B. ₦40
Correct C. ₦45
D. ₦50

Correct Answer: C

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Question 24
A company's revenue function is given by R = 2Q^2, where R is revenue and Q is output. If the firm's output is 5 units, what is the firm's revenue?
A. ₦50
B. ₦100
Correct C. ₦200
D. ₦500

Correct Answer: C

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Question 25
A firm's profit function is given by P = R - C, where P is profit, R is revenue, and C is cost. If the firm's revenue and cost are ₦100 and ₦50 respectively, what is the firm's profit?
A. ₦0
B. ₦25
Correct C. ₦50
D. ₦75

Correct Answer: C

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