POST UTME RSU 2024 Commerce | Objective

Are you preparing for POST UTME RSU 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
In a sole proprietorship, what is the primary advantage of limited liability?
A. Separation of ownership and management
Correct B. Limited liability for business debts
C. Easy to establish and maintain
D. No requirement for formal business registration

Correct Answer: B

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Question 2
A company has issued 100,000 ordinary shares of ₦10 each. If the company has a reserve fund of ₦500,000, what is the total amount of capital?
A. ₦1,000,000
Correct B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: B

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Question 3
A consumer protection agency has received a complaint about a company's unfair business practices. The agency has the power to investigate and take legal action against the company. What is the primary purpose of this agency?
A. To promote fair competition among businesses
Correct B. To protect consumers from unfair business practices
C. To regulate the prices of goods and services
D. To provide consumer education and awareness

Correct Answer: B

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Question 4
A company has a marketing budget of ₦1,000,000. The company wants to allocate the budget between advertising and promotion. If the company allocates 60% of the budget to advertising, how much will be allocated to promotion?
A. ₦300,000
B. ₦400,000
C. ₦500,000
Correct D. ₦600,000

Correct Answer: D

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Question 5
A company has a foreign trade agreement with a country that has a different currency. The company wants to convert the foreign currency to the local currency. If the exchange rate is 1 USD = ₦500, and the company has 100 USD, how much will be the equivalent in Nigerian Naira?
A. ₦50,000
B. ₦50,000,000
Correct C. ₦500,000
D. ₦50,000,000,000

Correct Answer: C

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Question 6
In a perfectly competitive market, what is the relationship between the marginal revenue and marginal cost curves?
A. Marginal revenue is always greater than marginal cost.
B. Marginal revenue is always less than marginal cost.
Correct C. Marginal revenue equals marginal cost at the profit-maximizing output level.
D. Marginal revenue is equal to marginal cost at all output levels.

Correct Answer: C

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Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦10 per unit, while the price of capital is ₦20 per unit, what is the minimum cost of production?
A. ₦160
Correct B. ₦240
C. ₦320
D. ₦400

Correct Answer: B

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Question 8
A consumer has the following indifference curves: IC1: 2U + 3V = 6, IC2: 2U + 3V = 12. If the consumer is initially at point A(2, 1), and the price of good U is ₦5 per unit, while the price of good V is ₦10 per unit, what is the consumer's optimal bundle?
A. (4, 2)
Correct B. (6, 3)
C. (8, 4)
D. (10, 5)

Correct Answer: B

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Question 9
A firm's demand function is given by Q = 100 - 2P. If the firm wants to maximize its revenue, what is the optimal price?
A. ₦20
Correct B. ₦30
C. ₦40
D. ₦50

Correct Answer: B

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Question 10
A consumer has the following budget constraint: 2U + 3V = 12. If the consumer is indifferent between the following two bundles: (U, V) = (4, 2) and (U, V) = (6, 1), what is the consumer's marginal rate of substitution?
A. 1/2
Correct B. 1
C. 2
D. 3

Correct Answer: B

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Question 11
A sole trader's business is considered a separate legal entity from the owner's personal assets. However, in the event of a lawsuit, the owner's personal assets may be at risk. What is the name of this risk?
Correct A. Unlimited Liability
B. Limited Liability
C. Joint Liability
D. Personal Liability

Correct Answer: A

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Question 12
A company's articles of association may include provisions for the appointment of a managing director. What is the primary responsibility of the managing director?
A. To manage the company's day-to-day operations
Correct B. To make strategic decisions on behalf of the company
C. To represent the company in legal matters
D. To oversee the company's financial affairs

Correct Answer: B

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Question 13
A warehouse manager is responsible for maintaining accurate inventory records. What is the primary method used to track inventory levels?
A. First-In-First-Out (FIFO)
B. Last-In-First-Out (LIFO)
C. Weighted Average Cost (WAC)
Correct D. Inventory Management System (IMS)

Correct Answer: D

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Question 14
A production manager is responsible for ensuring that products meet quality standards. What is the primary tool used to measure product quality?
Correct A. Control Chart
B. Pareto Chart
C. Histogram
D. Scatter Plot

Correct Answer: A

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Question 15
A transport manager is responsible for ensuring that goods are delivered on time. What is the primary method used to track shipments?
A. Barcode Scanning
B. Radio Frequency Identification (RFID)
C. Global Positioning System (GPS)
Correct D. Transport Management System (TMS)

Correct Answer: D

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Question 16
A bank's cash reserve ratio is 20%. If the bank has ₦100 million in deposits, how much cash must it reserve?
Correct A. ₦20 million
B. ₦30 million
C. ₦40 million
D. ₦50 million

Correct Answer: A

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Question 17
A company uses the just-in-time (JIT) inventory system. What is the primary benefit of this system?
A. Reduced inventory costs
B. Improved product quality
Correct C. Increased production efficiency
D. Enhanced customer satisfaction

Correct Answer: C

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Question 18
A firm's marketing mix consists of product, price, promotion, and place. What is the primary objective of the 'place' element?
A. To increase sales
B. To reduce costs
C. To improve customer service
Correct D. To enhance distribution channels

Correct Answer: D

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Question 19
A company uses the 'push' strategy in its marketing efforts. What is the primary characteristic of this strategy?
A. Focus on customer needs
B. Emphasis on product features
Correct C. Use of advertising and promotions
D. Targeting a specific market segment

Correct Answer: C

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Question 20
A firm's supply chain management involves the coordination of activities from raw materials to end customers. What is the primary goal of this process?
A. To reduce costs
B. To improve product quality
C. To enhance customer satisfaction
Correct D. To increase efficiency

Correct Answer: D

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Question 21
A company uses the 'pull' strategy in its marketing efforts. What is the primary characteristic of this strategy?
Correct A. Focus on customer needs
B. Emphasis on product features
C. Use of advertising and promotions
D. Targeting a specific market segment

Correct Answer: A

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Question 22
A firm's marketing research involves the collection and analysis of data to inform business decisions. What is the primary purpose of this process?
Correct A. To identify market trends
B. To develop new products
C. To improve customer satisfaction
D. To increase sales

Correct Answer: A

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Question 23
A company uses the 'hybrid' strategy in its marketing efforts. What is the primary characteristic of this strategy?
A. Focus on customer needs
B. Emphasis on product features
C. Use of advertising and promotions
Correct D. Targeting a specific market segment

Correct Answer: D

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Question 24
A firm's supply chain management involves the coordination of activities from raw materials to end customers. What is the primary goal of this process?
A. To reduce costs
B. To improve product quality
C. To enhance customer satisfaction
Correct D. To increase efficiency

Correct Answer: D

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Question 25
A company uses the 'push' strategy in its marketing efforts. What is the primary characteristic of this strategy?
A. Focus on customer needs
B. Emphasis on product features
Correct C. Use of advertising and promotions
D. Targeting a specific market segment

Correct Answer: C

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