POST UTME AAUA 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet shows total assets of ₦10,000,000 and total liabilities of ₦6,000,000. What is the company's equity?
A. ₦4000000
B. ₦5000000
C. ₦6000000
D. ₦7000000
Question 2
In a sole proprietorship, the owner's personal assets are
A. liable for business debts
B. not liable for business debts
C. liable for business profits
D. not liable for business losses
Question 3
A company is registered as a sole proprietorship. What is the liability of the owner?
A. Limited to the amount invested in the business
B. Unlimited, meaning the owner's personal assets are at risk
C. Limited to the amount of the company's assets
D. Depends on the type of business
Question 4
A company's articles of association can be amended by
A. a simple majority vote
B. a two-thirds majority vote
C. a unanimous vote
D. by a court order
Question 5
A firm's cost of goods sold is ₦2,000,000, and its total sales revenue is ₦5,000,000. What is the gross profit margin?
A. 40%
B. 50%
C. 60%
D. 70%
Question 6
A firm's warehousing and stock control system involves the use of barcodes, RFID tags, and inventory management software. Which of the following is a benefit of using RFID tags?
A. Improved inventory accuracy
B. Enhanced security features
C. Increased storage capacity
D. Reduced labor costs
Question 7
A consumer protection agency is investigating a complaint about a company's advertising practices. The company claims that its ads are 'substantially truthful' but the agency argues that they are 'misleading'. Which of the following is a key difference between these two claims?
A. Truthfulness vs. accuracy
B. Intent vs. effect
C. Substantially truthful vs. misleading
D. Commercial speech vs. non-commercial speech
Question 8
A bank offers a loan with an interest rate of 12% per annum compounded annually. If the principal amount is ₦10,000, what is the amount after 2 years?
A. ₦12,240
B. ₦12,480
C. ₦12,720
D. ₦13,440
Question 9
A company's financial statements show a net income of ₦1,500,000, but the cash flow statement reveals a net decrease of ₦800,000. What is the reason for this discrepancy?
A. The company has a high level of accounts receivable.
B. The company has a high level of accounts payable.
C. The company has a high level of inventory.
D. The company has a high level of depreciation.
Question 10
A company has a warehouse with a capacity of 1000 units. If the current inventory level is 800 units, and the daily demand is 50 units, what is the maximum time the warehouse can operate without reordering?
A. 10 days
B. 15 days
C. 20 days
D. 25 days
Question 11
A consumer's utility function is given by U(x, y) = 2x + 3y, where x is the quantity of good X and y is the quantity of good Y. If the consumer's income is ₦100 and the prices of good X and good Y are ₦5 and ₦3 respectively, how many units of good X should the consumer buy?
A. 10 units
B. 15 units
C. 20 units
D. 25 units
Question 12
A consumer purchases a product with a price of ₦5,000. If the product is returned due to a defect, what is the amount the consumer is entitled to receive?
A. ₦4,500
B. ₦4,000
C. ₦3,500
D. ₦3,000
Question 13
A firm's cost function is given by C(x) = 2x^2 + 5x, where x is the number of units produced. If the firm produces 10 units, what is its total cost?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 14
A cargo insurance policy that covers the risk of loss or damage to goods during transit is
A. all-risk policy
B. named-perils policy
C. open-perils policy
D. transit policy
Question 15
A firm is considering two different production processes: one that requires an initial investment of ₦10000 and another that requires an initial investment of ₦20000. If the firm expects to produce 100 units of output per year for 5 years, what is the present value of the expected cash flows from each process?
A. ₦50000
B. ₦60000
C. ₦70000
D. ₦80000

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