POST UTME ACHIEVERS UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering two different production technologies: a traditional technology that requires 2 units of labor and 1 unit of capital to produce 1 unit of output, and a modern technology that requires 1 unit of labor and 2 units of capital to produce 1 unit of output. If the firm has 100 units of labor and 50 units of capital, which technology should the firm adopt?
A. Traditional technology
B. Modern technology
C. Both technologies are equally efficient
D. Neither technology is efficient
Question 2
A company's financial statements show a net loss of ₦500,000. What is the effect on the company's retained earnings?
A. ₦500,000 decrease
B. ₦500,000 increase
C. No effect
D. ₦1,000,000 decrease
Question 3
A consumer protection agency has received a complaint about a company's unfair business practices. The agency's investigation reveals that the company has engaged in false advertising, which has caused financial losses to several consumers. What is the most appropriate course of action for the agency?
A. Issue a warning to the company and require it to cease the unfair business practice.
B. Impose a fine on the company and order it to compensate the affected consumers.
C. Refer the matter to the relevant regulatory authority for further action.
D. Dismiss the complaint as frivolous.
Question 4
A company uses the First-In-First-Out (FIFO) inventory method. If it has 100 units of stock and sells 20 units, what is the new stock level?
A. 80
B. 90
C. 100
D. 110
Question 5
A company's warehouse has a capacity of 10,000 square meters. If the company stores goods worth ₦5,000,000, what is the storage cost per square meter?
A. ₦500
B. ₦1,000
C. ₦2,000
D. ₦5,000
Question 6
A company uses a marketing mix strategy to promote its product. The marketing mix includes product, price, place, and promotion. Which of the following is a part of the marketing mix?
A. Product
B. Price
C. Place
D. Research
Question 7
A firm specializes in producing a single product, and its production function is given by the equation ( Q = 2L^{ rac{1}{2}}K^{ rac{1}{3}} ). If the firm's output is 64 units and the capital stock is 27 units, what is the value of labor (L)?
A. 9
B. 12
C. 16
D. 20
Question 8
A company is considering a new logistics strategy to reduce its transportation costs. Which of the following is a key factor in determining the most cost-effective mode of transportation?
A. The distance between the origin and destination.
B. The weight of the goods being transported.
C. The type of goods being transported.
D. The speed of transportation.
Question 9
A consumer has a budget constraint of 100 units of currency, and the prices of two goods, X and Y, are 5 units and 10 units, respectively. The consumer's indifference curve is given by the equation UX + 2UY = 20. What is the consumer's optimal consumption bundle?
A. X = 20, Y = 10
B. X = 15, Y = 5
C. X = 10, Y = 10
D. X = 5, Y = 20
Question 10
A company uses a marketing mix strategy to promote its product. The marketing mix includes product, price, place, and promotion. Which of the following is a part of the marketing mix?
A. Product
B. Price
C. Place
D. Research
Question 11
A firm's production function is given by the equation ( Q = 2L^{ rac{1}{2}}K^{ rac{1}{3}} ). If the firm's output is 64 units and the capital stock is 27 units, what is the value of labor (L)?
A. 9
B. 12
C. 16
D. 20
Question 12
A company's insurance policy has a deductible of ₦100,000. If the company suffers a loss of ₦500,000, what amount will the insurance company pay?
A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦700,000
Question 13
A bank's primary function is to act as a financial intermediary between savers and borrowers. What is the main advantage of this function?
A. To provide liquidity to borrowers
B. To reduce the risk of lending
C. To increase the efficiency of financial transactions
D. To provide a safe and stable financial system
Question 14
A bank's risk management strategy involves diversification of its assets to minimize potential losses. Which of the following is a type of diversification that a bank may use?
A. Diversification by industry
B. Diversification by geography
C. Diversification by asset class
D. Diversification by time
Question 15
A company's articles of association state that the company's shares can be transferred only with the consent of the board of directors. What type of share is this?
A. Ordinary share
B. Preference share
C. Redeemable share
D. Restricted share

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