POST UTME ABU 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's insurance policy covers losses due to fire, theft, and natural disasters. If the company's annual premium is ₦1.5 million and it experiences a loss of ₦2.8 million due to a fire, what is the company's deductible?
A. ₦500,000
B. ₦750,000
C. ₦1.0 million
D. ₦1.2 million
Question 2
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. What is the primary advantage of registering under CAMA?
A. Limited liability
B. Easy registration process
C. Flexibility in management
D. Tax benefits
Question 3
A firm specializes in producing only one product. This specialization leads to economies of scale in production. However, it also means that the firm is vulnerable to fluctuations in demand for that product. What is the name of this phenomenon?
A. Risk
B. Uncertainty
C. Economies of scale
D. Diversification
Question 4
The Central Bank of Nigeria (CBN) uses monetary policy to control inflation by increasing the reserve requirement for commercial banks. This action will lead to a decrease in the money supply, which will cause a decrease in the aggregate demand. However, this decrease in aggregate demand will lead to a decrease in the price level. Which of the following is a correct statement about the effect of this policy on the price level?
A. The price level will increase
B. The price level will decrease
C. The price level will remain the same
D. The price level will fluctuate
Question 5
A consumer purchases a product online and receives a defective item. The consumer returns the product to the seller, but the seller refuses to provide a refund. What is the primary remedy available to the consumer under the Consumer Protection Act?
A. The consumer can sue the seller for damages.
B. The consumer can return the product and receive a full refund.
C. The consumer can cancel the contract and receive a refund.
D. The consumer can report the seller to the Consumer Protection Agency.
Question 6
A company has a stock of 1000 units of a product, and the demand for the product is 500 units per month. If the company wants to maintain a stock level of at least 500 units, what is the minimum number of units that the company should order each month?
A. 200
B. 250
C. 300
D. 350
Question 7
A company's transport manager is responsible for ensuring that the company's vehicles are properly maintained and comply with all relevant regulations. What is the primary reason for this responsibility?
A. To ensure the safety of the company's drivers.
B. To ensure the safety of the company's vehicles.
C. To ensure compliance with all relevant regulations.
D. To reduce the company's transportation costs.
Question 8
A firm's production function is given by Q = 2L^0.5K^0.25, where Q is output, L is labor, and K is capital. If labor increases by 20% and capital remains constant, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 9
A consumer purchases a product with a price of ₦2,000. If the consumer pays a 10% sales tax, what is the total amount paid by the consumer?
A. ₦2,200
B. ₦2,200
C. ₦2,200
D. ₦2,200
Question 10
A company has a sole proprietorship business structure. What is the primary advantage of this business structure?
A. Easy to set up
B. Limited liability
C. Unlimited liability
D. Tax benefits
Question 11
A company specializing in the production of motor vehicles has a production process that involves the assembly of various components. If the company's production process can be represented by the following flowchart, what is the probability that the production process will be completed within 8 hours?
A. 0.5
B. 0.6
C. 0.7
D. 0.8
Question 12
A warehouse manager is responsible for ensuring that the company's inventory is properly stored and accounted for. What is the primary reason for this responsibility?
A. To ensure the safety of the company's inventory.
B. To ensure the accuracy of the company's financial records.
C. To ensure compliance with all relevant regulations.
D. To reduce the company's storage costs.
Question 13
A firm's revenue function is given by R(x) = 2x^2 + 5x - 3, where x is the number of units sold. If the firm sells 10 units, what is the marginal revenue?
A. 29
B. 31
C. 33
D. 35
Question 14
A company produces two products, A and B. Product A requires 2 hours of labor and 3 units of raw material, while product B requires 3 hours of labor and 2 units of raw material. If the company has 12 hours of labor and 15 units of raw material available, how many units of product A can be produced?
A. 3
B. 4
C. 5
D. 6
Question 15
A company has a warehouse with a capacity of 1000 units. The warehouse is currently 75% full. If 200 units are added to the warehouse, what is the new percentage of capacity?
A. 80%
B. 85%
C. 90%
D. 95%

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