POST UTME RHEMA UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A bank's reserve requirement is 10%. If the bank has a deposit of ₦1,000,000, how much must it keep in reserve?
A. ₦100,000
B. ₦50,000
C. ₦0
D. ₦500,000
Question 2
A firm's transportation costs are a significant expense in its supply chain. What is the name of the transportation mode that involves the use of ships to transport goods?
A. Rail
B. Road
C. Air
D. Marine
Question 3
A company is considering the introduction of a new product. The product has a high fixed cost of production, but a low variable cost. The company is considering two different pricing strategies: a high price and a low price. Which of the following best describes the effect of the high price strategy on the company's revenue?
A. The high price strategy will increase the company's revenue.
B. The high price strategy will decrease the company's revenue.
C. The high price strategy will have no effect on the company's revenue.
D. The high price strategy will increase the company's revenue, but will also increase the company's costs.
Question 4
A company's financial statement shows a net income of ₦500,000. If the company's total assets are ₦2,000,000 and its total liabilities are ₦1,000,000, what is the company's return on equity?
A. 25%
B. 50%
C. 75%
D. 100%
Question 5
A firm's _______ refers to the process of transporting goods from one place to another.
A. production
B. distribution
C. marketing
D. finance
Question 6
A company's cost of capital is 10% and its expected return on investment is 12%. What is the expected increase in the company's stock price if it invests in a new project?
A. 5%
B. 10%
C. 15%
D. 20%
Question 7
A firm specializes in producing only one product. This specialization is an example of which of the following production concepts?
A. Economies of scale
B. Division of labor
C. Product differentiation
D. Vertical integration
Question 8
A consumer is considering purchasing a product that has a price of ₦1000. The consumer's budget is ₦2000, and the consumer is willing to spend up to 50% of their budget on the product. Which of the following best describes the consumer's willingness to pay for the product?
A. The consumer is willing to pay up to ₦1000 for the product.
B. The consumer is willing to pay up to ₦2000 for the product.
C. The consumer is willing to pay up to ₦1000 for the product, but is not willing to pay more.
D. The consumer is not willing to pay more than ₦1000 for the product.
Question 9
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
D. directors of the company
Question 10
A company is considering the introduction of a new product. The product has a high fixed cost of production, but a low variable cost. Which of the following best describes the type of market structure that this company is operating in?
A. Perfect competition
B. Monopoly
C. Oligopoly
D. Monopolistic competition
Question 11
A firm's warehouse is used to store finished goods before they are shipped to customers. What is the name of the inventory management technique that involves counting the number of items in the warehouse at regular intervals?
A. First-In-First-Out (FIFO)
B. Last-In-First-Out (LIFO)
C. Inventory Valuation
D. Cycle Counting
Question 12
A company's stock is currently trading at ₦50 per share. If the company declares a 20% dividend, what is the new stock price?
A. ₦40
B. ₦50
C. ₦60
D. ₦70
Question 13
A firm's cost function is given by C = 2x + 5, where x is the number of units produced. If the firm produces 5 units, what is the total cost?
A. 15
B. 17
C. 19
D. 21
Question 14
A company is considering the introduction of a new product. The product has a high fixed cost of production, but a low variable cost. The company is considering two different pricing strategies: a high price and a low price. Which of the following best describes the effect of the low price strategy on the company's revenue?
A. The low price strategy will increase the company's revenue.
B. The low price strategy will decrease the company's revenue.
C. The low price strategy will have no effect on the company's revenue.
D. The low price strategy will increase the company's revenue, but will also increase the company's costs.
Question 15
A firm's production process can be described as _______ if it produces a single product using a single production process.
A. specialization
B. economies of scale
C. product differentiation
D. vertical integration

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