POST UTME LEAD CITY UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering two production processes: Process A, which involves a fixed cost of ₦100,000 and a variable cost of ₦50 per unit, and Process B, which involves a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the firm produces 1,000 units, what is the total cost under Process A?
A. ₦150,000
B. ₦160,000
C. ₦170,000
D. ₦180,000
Question 2
A company is considering exporting its products to a foreign country. Which of the following is a type of export?
A. Direct export
B. Indirect export
C. Export through a trading company
D. Export through a joint venture
Question 3
A sole trader is considering expanding its business by hiring additional employees. The sole trader's current profit is ₦500,000 and its current fixed costs are ₦200,000. If the sole trader hires an additional employee at a wage of ₦50,000 per month, what will be the new profit of the business?
A. ₦450000
B. ₦500000
C. ₦550000
D. ₦600000
Question 4
A bank's primary function is to act as a financial intermediary between savers and borrowers. This is an example of which of the following banking functions?
A. Acceptance of Deposits
B. Granting of Loans
C. Investment in Securities
D. Acting as a Financial Intermediary
Question 5
A company is considering investing in a new project with a required rate of return of 12%. If the project's expected return is 15%, what is the project's 'Sensitivity'?
A. The project's expected return is higher than its required rate of return.
B. The project's expected return is lower than its required rate of return.
C. The project's expected return is equal to its required rate of return.
D. The project's sensitivity is 3%.
Question 6
A consumer's right to receive a refund for a defective product is an example of which of the following consumer protection laws?
A. Consumer Protection Act
B. Sales of Goods Act
C. Unfair Contract Terms Act
D. Distance Selling Regulations
Question 7
The concept of 'Gresham's Law' in International Trade is best described as:
A. The tendency of a country to export its goods and services.
B. The law that states that bad money drives out good money.
C. The idea that a country's trade balance is determined by its exchange rate.
D. The concept that a country's imports are always greater than its exports.
Question 8
A company's marketing strategy involves creating a sense of urgency to encourage customers to make a purchase. This is an example of which of the following marketing tactics?
A. Scarcity
B. Exclusivity
C. Social Proof
D. Sense of Urgency
Question 9
A consumer protection agency receives a complaint about a company's misleading advertising. The agency's primary goal is to protect the consumer's right to truthful information. Which of the following is a key principle of consumer protection?
A. Consumer sovereignty
B. Free market competition
C. Truthful information
D. Consumer choice
Question 10
A company's financial statements are prepared in accordance with the Generally Accepted Accounting Principles (GAAP). Which of the following is a characteristic of GAAP?
A. GAAP is based on the cash basis of accounting.
B. GAAP is based on the accrual basis of accounting.
C. GAAP is based on the historical cost basis of accounting.
D. GAAP is based on the current cost basis of accounting.
Question 11
A sole trader, Mr. A, has a business income of ₦500,000 and a business expenditure of ₦300,000. If he also has a personal income of ₦200,000 and a personal expenditure of ₦150,000, what is his total tax liability?
A. ₦0
B. ₦50,000
C. ₦100,000
D. ₦150,000
Question 12
A company has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. If the company issues 50,000 shares at a premium of ₦5 per share, what is the total amount received from the issue of shares?
A. ₦500,000
B. ₦750,000
C. ₦1,250,000
D. ₦1,500,000
Question 13
A company's insurance policy covers losses due to fire, theft, and natural disasters. The policy has a deductible of ₦10,000 and a premium of ₦50,000 per year. If the company experiences a loss of ₦150,000 due to fire, what is the total amount the company must pay?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 14
A firm's introduction of a new product is an example of which of the following business activities?
A. Marketing
B. Operations
C. Finance
D. Human Resource Management
Question 15
The Central Bank of Nigeria (CBN) uses the monetary policy instrument of Open Market Operations (OMO) to influence the money supply in the economy. Which of the following is a correct statement about OMO?
A. The CBN buys government securities from commercial banks to increase the money supply.
B. The CBN sells government securities to commercial banks to reduce the money supply.
C. The CBN lends money to commercial banks to increase the money supply.
D. The CBN borrows money from commercial banks to reduce the money supply.

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