POST UTME LASU 2025 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 2025 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 the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a characteristic of a sole trader?
A. Unlimited liability
B. Limited liability
C. Separation of ownership and management
Correct D. No distinction between ownership and management

Correct Answer: D

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Question 2
A company is considering the purchase of a new warehouse. The warehouse has a capacity of 10,000 square meters and a rental fee of ₦500,000 per month. The company's current warehouse has a capacity of 5,000 square meters and a rental fee of ₦300,000 per month. What is the total cost of renting the new warehouse for 12 months?
A. ₦6,000,000
Correct B. ₦7,200,000
C. ₦8,400,000
D. ₦9,600,000

Correct Answer: B

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Question 3
A consumer purchases a product from a retailer for ₦10,000. The retailer offers a 10% discount on the product. What is the amount of discount the consumer receives?
Correct A. ₦1,000
B. ₦1,500
C. ₦2,000
D. ₦2,500

Correct Answer: A

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Question 4
A company has a policy of paying its employees a bonus of 10% of their salary after 6 months of service. If an employee earns ₦50,000 per month, what is the bonus the employee receives after 6 months?
A. ₦5,000
Correct B. ₦6,000
C. ₦7,000
D. ₦8,000

Correct Answer: B

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Question 5
A company has a policy of paying its employees a bonus of 10% of their salary after 6 months of service. If an employee earns ₦50,000 per month, what is the total amount the employee receives after 6 months?
A. ₦300,000
Correct B. ₦320,000
C. ₦340,000
D. ₦360,000

Correct Answer: B

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Question 6
A sole trader's business is registered under which of the following?
A. Partnership
B. Limited Liability Company
Correct C. Sole Trader
D. Cooperative Society

Correct Answer: C

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Question 7
A company's memorandum of association is a document that outlines the
A. objects of the company
B. management structure of the company
C. share capital of the company
Correct D. all of the above

Correct Answer: D

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Question 8
A warehouse's inventory control system is designed to
A. reduce stockouts
B. increase stockouts
Correct C. minimize inventory costs
D. maximize inventory costs

Correct Answer: C

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Question 9
A marketing strategy that focuses on building strong relationships with customers is known as
Correct A. relationship marketing
B. transactional marketing
C. product marketing
D. branded marketing

Correct Answer: A

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Question 10
A company's supply chain is a network of
A. suppliers, manufacturers, and customers
B. suppliers, manufacturers, and distributors
C. manufacturers, distributors, and customers
Correct D. all of the above

Correct Answer: D

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Question 11
In a perfectly competitive market, what is the relationship between the marginal revenue product of labor (MRPL) and the marginal factor cost of labor (MFC)?
A. MRPL > MFC
B. MRPL < MFC
Correct C. MRPL = MFC
D. MRPL and MFC are unrelated

Correct Answer: C

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Question 12
A company is considering two different production processes for a new product. Process A has a higher fixed cost but a lower variable cost per unit, while Process B has a lower fixed cost but a higher variable cost per unit. What is the optimal production level for each process, assuming a market demand of 10,000 units?
A. Process A: 5,000 units; Process B: 10,000 units
Correct B. Process A: 10,000 units; Process B: 5,000 units
C. Process A: 8,000 units; Process B: 12,000 units
D. Process A: 12,000 units; Process B: 8,000 units

Correct Answer: B

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Question 13
A firm is considering exporting its product to a foreign market. What is the primary advantage of exporting over domestic production?
A. Increased market share
B. Reduced production costs
Correct C. Access to new markets and customers
D. Improved product quality

Correct Answer: C

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Question 14
A company is considering investing in a new project. The project has a required rate of return of 12% and an expected return of 15%. What is the project's sensitivity to changes in the required rate of return?
Correct A. Highly sensitive
B. Moderately sensitive
C. Not very sensitive
D. Not at all sensitive

Correct Answer: A

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Question 15
A firm is considering a new marketing strategy. The strategy has a high fixed cost but a low variable cost per unit. What is the primary advantage of this strategy?
A. Increased market share
B. Reduced production costs
C. Improved product quality
Correct D. Increased pricing power

Correct Answer: D

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Question 16
A company is considering two marketing strategies: one that targets a niche market with a high-end product and another that targets a broader market with a lower-end product. Which strategy is more likely to result in higher profit margins?
Correct A. Targeting a niche market with a high-end product
B. Targeting a broader market with a lower-end product
C. Targeting a niche market with a lower-end product
D. Targeting a broader market with a high-end product

Correct Answer: A

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Question 17
A firm is considering the following production costs: fixed costs of ₦100,000, variable costs of ₦50 per unit, and a selling price of ₦75 per unit. What is the break-even point in units?
A. 1,000 units
Correct B. 2,000 units
C. 3,000 units
D. 4,000 units

Correct Answer: B

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Question 18
A bank offers a 5% annual interest rate on deposits. If a customer deposits ₦10,000 for 2 years, how much interest will they earn?
A. ₦500
Correct B. ₦1,000
C. ₦1,500
D. ₦2,000

Correct Answer: B

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Question 19
A sole trader has a business income of ₦200,000 and business expenses of ₦150,000. What is their business profit?
A. ₦50,000
Correct B. ₦75,000
C. ₦100,000
D. ₦125,000

Correct Answer: B

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Question 20
A company has a production capacity of 10,000 units per month. If they produce 8,000 units in a month, what is their production efficiency?
A. 80%
Correct B. 85%
C. 90%
D. 95%

Correct Answer: B

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Question 21
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is NOT a key objective of advertising in this mix?
A. To create awareness about the product
B. To build brand loyalty
C. To increase sales
Correct D. To reduce competition

Correct Answer: D

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Question 22
A firm's production function is given by Q = 2L^0.5 * K^0.5. If the firm's current output is 16 units and the number of workers (L) is 4, what is the required capital (K)?
A. 4
Correct B. 6
C. 8
D. 10

Correct Answer: B

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Question 23
A company is considering two different marketing strategies: Strategy A involves a high level of advertising and a low level of sales promotions, while Strategy B involves a low level of advertising and a high level of sales promotions. Which of the following is a potential advantage of Strategy A?
Correct A. Increased brand awareness
B. Improved customer relationships
C. Higher sales volume
D. Reduced competition

Correct Answer: A

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Question 24
A firm's cost function is given by C = 2L + 3K. If the firm's current cost is ₦1200 and the number of workers (L) is 3, what is the required capital (K)?
A. 4
Correct B. 6
C. 8
D. 10

Correct Answer: B

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Question 25
A company is considering two different distribution channels: Channel A involves a high level of inventory holding and a low level of transportation costs, while Channel B involves a low level of inventory holding and a high level of transportation costs. Which of the following is a potential advantage of Channel A?
A. Improved customer service
B. Increased sales volume
Correct C. Reduced inventory costs
D. Lower transportation costs

Correct Answer: C

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