UTME 2025 Commerce | Objective

Are you preparing for UTME exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2025 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
Commerce is defined as the study of how
A. man utilizes the resources in his physical environment
B. man produces, distributes and consumes his goods and services
Correct C. man buys, sells and distributes goods and services
D. raw materials are changed into finished goods.

Correct Answer: C

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Question 2
Mr. Amusa says to Mr. Bello 'I will sell you this land for ₦30'. And Mr. Bello replied 'I will pay ₦29'. The contract is
A. an offer and acceptance
B. an implied contract
C. a complete simple contract
Correct D. an offer but no acceptance.

Correct Answer: D

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Question 3
Construction activities include the building of houses and roads as well as
Correct A. bricklaying
B. shoemaking
C. blacksmithing
D. car assembling.

Correct Answer: A

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Question 4
The nominal value of a share as specified in the Memorandum of Association and the share certificate is the
A. discounted value
B. stock value
Correct C. face value
D. par value.

Correct Answer: C

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Question 5
Transportation, retailing and wholesaling industries rely heavily on
A. banking
Correct B. insurance
C. manufacturing
D. railway.

Correct Answer: B

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Question 6
When it becomes necessary to liquidate a company, the first step to be taken is the appointment of
A. a receiver
B. an auditor
C. an accountant
Correct D. a liquidator.

Correct Answer: D

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Question 7
The primary objective of a business organization is to
A. cater for the needs of its owners
Correct B. work towards making returns
C. assist the government to serve the citizens
D. improve the standard of living of its proprietors.

Correct Answer: B

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Question 8
If a firm's turnover is ₦15,000 and the cost of goods sold is ₦10,000, what is the percentage of gross profit on sales?
A. 25%
Correct B. 33.3%
C. 50.0%
D. 66.6%.

Correct Answer: B

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Question 9
A company has an authorized capital of 40 million shares at ₦1 per share, out of which 32 million shares have been issued and fully paid-up. The remaining 8 million shares have
A. been issued but not been paid-up
B. been applied for but not issued
C. not been paid-up
Correct D. not yet been issued.

Correct Answer: D

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Question 10
The principle of subrogation states that an insured person should be indemnified to the tune of the amount insured
Correct A. an insurance company can stand in place of the insured in dealing with third party
B. only a person who is likely to suffer loss should take out an insurance cover
C. there must be a close connection between the actual loss suffered and risk insured.

Correct Answer: A

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Question 11
The application of division of labour should generally bring about
Correct A. increase in the quantity of goods and services
B. increase in the variety of goods and services
C. cheapness of goods and services
D. cost efficiency in the production of goods and services.

Correct Answer: A

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Question 12
The composite functions of management are
A. planning, supervising, communicating
Correct B. planning, controlling, organising and directing
C. coordinating, supervising, staffing and communicating
D. directing, supervising, motivating and controlling.

Correct Answer: B

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Question 13
The partner that only contributes part of the capital used in the formation and running of a business is known as
A. a passive partner
B. an active partner
Correct C. a dormant partner
D. a nominal partner.

Correct Answer: C

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Question 14
One of the reasons why wholesaling must continue is that
A. the tax paid by wholesalers on their profit enhances national revenue
B. by creating artificial scarcity, the wholesaler is enhancing competition in the economy
C. the wholesaler provides technical advice to the retailer
Correct D. the gap between manufacturers and retailers is reduced by wholesalers.

Correct Answer: D

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Question 15
Secondary production has to do with changing the
A. shape of raw materials through construction operations
Correct B. physical form of raw materials into finished goods
C. utility of raw materials by an engineering process
D. nature of raw materials through manufacturing processes.

Correct Answer: B

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Question 16
A bill of exchange already accepted can be discounted by
A. the holder in A
B. the central bank
C. his bank
Correct D. any bank.

Correct Answer: D

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Question 17
A pattern that shows the kinds of participants involved in the production, distribution and ultimate use of a product is referred to as
A. selection
B. strategy
Correct C. structure
D. synergy.

Correct Answer: C

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Question 18
A firm that adapts itself to delivering the desired satisfaction more effectively and efficiently than its competitors is said to be practising
A. price concept
B. distribution concept
C. product concept
Correct D. marketing concept.

Correct Answer: D

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Question 19
Coverage against unexpected events is called
Correct A. insurance
B. assurance
C. warranty
D. reinsurance.

Correct Answer: A

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Question 20
As the branches indicate, iv is
A. commerce
B. exchange
C. finance
Correct D. construction.

Correct Answer: D

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Question 21
The most important benefit of insurance is that it provides
A. control over activities
B. the insured with a right to premium
C. the insured with a right to full compensation
Correct D. protection against risks

Correct Answer: D

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Question 22
A type of credit offered by both commercial and merchant banks in Nigeria is
A. trade credit
B. clean credit
C. discounting facility
Correct D. overdraft

Correct Answer: D

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Question 23
A payment made to the insured by the insurer outside its legal obligation is
A. premium paid
Correct B. gratis payment
C. surrender value
D. sum assured

Correct Answer: B

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Question 24
In international trade, exchanging goods for other goods and services purchased instead of paying in foreign currency is known as
Correct A. countertrade
B. balance of trade
C. balance of payments
D. terms of trade

Correct Answer: A

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Question 25
Which of the following best describes inputs for any production activity?
A. Natural resources
Correct B. Business resources
C. Human resources
D. Material resources

Correct Answer: B

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