POST UTME SUMMIT UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's marketing strategy involves a mix of advertising and public relations. Which of the following is a key benefit of using public relations in a marketing mix?
A. Increased brand awareness
B. Improved customer loyalty
C. Enhanced reputation
D. Increased sales
Question 2
In a production process, the marginal cost (MC) of producing the 100th unit is ₦250. If the average cost (AC) of producing the first 100 units is ₦200, and the fixed cost is ₦10,000, what is the total cost of producing the first 100 units?
A. ₦22,500
B. ₦25,000
C. ₦30,000
D. ₦35,000
Question 3
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the price increases by 20%, what is the new quantity demanded?
A. 80
B. 60
C. 40
D. 20
Question 4
A consumer purchases a product with a warranty that covers repairs for a period of 2 years. If the product is damaged after 18 months, what type of insurance would the consumer need to purchase to cover the cost of repairs?
A. Accidental damage insurance
B. Extended warranty insurance
C. Product liability insurance
D. Professional indemnity insurance
Question 5
A company's marketing strategy involves a 20% discount on all products during a promotional period. If a product originally costs ₦1,500, what is the selling price after the discount?
A. ₦1,200
B. ₦1,500
C. ₦1,800
D. ₦2,000
Question 6
In a perfectly competitive market, the supply curve is typically upward-sloping because of the law of increasing
A. marginal opportunity cost
B. marginal utility
C. marginal revenue
D. marginal cost
Question 7
A company's business model involves selling products online through a platform that charges a commission on each sale. If the company sells 100 products at ₦500 each and the platform charges a 10% commission, what is the total commission paid to the platform?
A. ₦5,000
B. ₦5,500
C. ₦6,000
D. ₦6,500
Question 8
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm wants to increase output by 20% while keeping labor constant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 9
A company's warehouse is used for storing raw materials, work-in-progress, and finished goods. Which of the following is a key benefit of using a warehouse?
A. Reduced storage costs
B. Improved inventory management
C. Enhanced customer service
D. Increased sales
Question 10
A company is developing a new marketing strategy to increase sales. Which of the following is a key consideration for the company?
A. The company's target market size and growth potential.
B. The company's production costs and pricing strategy.
C. The company's ability to adapt to local regulations and customs.
D. The company's decision to use a sole trader or partnership structure.
Question 11
A firm's cost function is given by the equation C = 3L^2 + 2K, where C is cost, L is labor, and K is capital. If the firm hires 5 units of labor and 10 units of capital, what is the total cost?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 12
A firm's production process involves a series of steps, including raw material procurement, manufacturing, and packaging. Which of the following is a key characteristic of a production process?
A. It involves only one step
B. It involves only two steps
C. It involves multiple steps
D. It involves no steps
Question 13
A bank's liquidity ratio is calculated as the ratio of its liquid assets to its total deposits. If a bank has liquid assets worth ₦120 million and total deposits of ₦180 million, what is its liquidity ratio?
A. 0.67
B. 0.80
C. 0.83
D. 0.90
Question 14
A company's cost function is given by C = 100L + 200K, where C is cost, L is labor, and K is capital. If labor increases by 10% and capital remains constant, what is the new cost?
A. 1100
B. 1200
C. 1300
D. 1400
Question 15
A firm's revenue function is given by R = 100Q - 2Q^2, where R is revenue and Q is quantity sold. If the quantity sold increases by 20%, what is the new revenue?
A. 1800
B. 2000
C. 2200
D. 2400

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