POST UTME OAU 2024 Commerce | Objective

Are you preparing for POST UTME OAU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2024 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. Separate legal entity
Correct D. No distinction between personal and business finances

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A company X is registered under the Companies and Allied Matters Act (CAMA) 2020. The company has a share capital of ₦5,000,000, divided into 500,000 ordinary shares of ₦10 each. What is the company's share capital in naira?
Correct A. ₦5,000,000
B. ₦10,000,000
C. ₦15,000,000
D. ₦20,000,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A bank's cash reserve ratio is 10%. If the bank has a cash reserve of ₦1,000,000, what is the total amount of deposits it has received?
A. ₦10,000,000
B. ₦20,000,000
C. ₦30,000,000
Correct D. ₦40,000,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company's marketing strategy involves creating a new product to appeal to a younger demographic. Which of the following is a characteristic of this marketing strategy?
A. Product differentiation
B. Market segmentation
Correct C. Target marketing
D. Positioning

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company's supply chain involves transporting goods from a factory to a warehouse using a third-party logistics provider. Which of the following is a benefit of this supply chain strategy?
A. Reduced transportation costs
Correct B. Improved delivery times
C. Increased flexibility
D. Enhanced customer service

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
In a perfectly competitive market, the demand curve for a firm's product is its?
A. Supply Curve
Correct B. Demand Curve
C. Marginal Revenue Curve
D. Marginal Cost Curve

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A company's production function is given by Q = 100L^0.5K^0.25. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the company wants to produce 100 units of output, how much will it spend on labor and capital?
A. ₦10,000
B. ₦12,000
Correct C. ₦15,000
D. ₦18,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A firm's revenue function is given by R(x) = 3x^2 - 2x + 10. If the firm produces 5 units of output, what is its marginal revenue?
A. ₦15
Correct B. ₦20
C. ₦25
D. ₦30

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A company's marketing mix consists of a product, price, place, and promotion. Which of the following is NOT a part of the marketing mix?
A. Product
B. Price
C. Place
Correct D. Finance

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A firm's production function is given by Q = 2L^0.5K^0.25. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, and the firm wants to produce 50 units of output, how much will it spend on labor and capital?
A. ₦2,500
B. ₦3,000
Correct C. ₦4,000
D. ₦5,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
In the context of international trade, what is the primary purpose of the Most Favoured Nation (MFN) clause in a trade agreement?
A. To impose tariffs on imports from other countries
B. To grant preferential treatment to imports from specific countries
Correct C. To ensure that all trade partners are treated equally
D. To restrict imports from certain countries

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A company is considering the implementation of a new production process that will reduce costs by 15% but increase lead time by 20%. What is the impact on the company's cash flow?
Correct A. The cash flow will decrease by 10%
B. The cash flow will increase by 5%
C. The cash flow will remain unchanged
D. The cash flow will increase by 15%

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A consumer is considering purchasing a product with a 20% discount. The original price is ₦1,000. What is the discounted price?
Correct A. ₦800
B. ₦900
C. ₦1,000
D. ₦1,200

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A company is considering the implementation of a new marketing strategy that will increase sales by 10% but also increase costs by 15%. What is the net impact on the company's profit?
Correct A. The profit will increase by 5%
B. The profit will decrease by 5%
C. The profit will remain unchanged
D. The profit will increase by 10%

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A consumer is considering purchasing a product with a 10% sales tax. The original price is ₦1,000. What is the total price paid by the consumer?
Correct A. ₦1,100
B. ₦1,000
C. ₦1,050
D. ₦1,200

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will
A. increase
Correct B. decrease
C. remain constant
D. shift to the left

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A company's financial statements are audited by an independent auditor to ensure that they are
A. accurate and reliable
B. fair and unbiased
C. complete and transparent
Correct D. all of the above

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
The concept of opportunity cost is relevant in the context of
Correct A. production and specialization
B. home and foreign trade
C. consumer protection and business law
D. banking and financial institutions

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A sole trader is a type of business organization that is owned and managed by a single individual, known as the
A. partner
B. director
C. shareholder
Correct D. proprietor

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
The concept of comparative advantage is relevant in the context of
Correct A. production and specialization
B. home and foreign trade
C. consumer protection and business law
D. banking and financial institutions

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
In a perfectly competitive market, the supply curve is downward sloping due to the law of increasing marginal opportunity cost. However, this law is not applicable in a market with a single firm, as the firm can influence the market price. What is the name of this market structure?
A. Monopoly
B. Oligopoly
C. Monopolistic Competition
Correct D. Perfect Competition

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
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, what is the firm's current output?
A. 24
B. 36
Correct C. 48
D. 64

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A company has a warehouse with a capacity of 1000 units. The company's inventory level is currently at 500 units. If the company receives a shipment of 200 units, what is the new inventory level?
A. 300
B. 400
C. 500
Correct D. 600

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A firm's revenue function is given by R = 100Q - 2Q^2. If the firm's current output is Q = 10, what is the firm's current revenue?
A. 800
B. 900
Correct C. 1000
D. 1100

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A company has a trade deficit of 100 million. If the company's exports are 200 million and its imports are 300 million, what is the company's current account balance?
Correct A. -100 million
B. 0
C. 100 million
D. 200 million

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support