POST UTME BELLS UNIVERSITY 2021 Commerce | Objective

Are you preparing for POST UTME BELLS UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2021 Commerce (Objective) questions designed to simulate the real exam environment.

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. Building brand awareness
B. Creating a sense of urgency
Correct C. Establishing credibility
D. Generating leads

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A sole trader's business is affected by the following factors: market conditions, competition, and government regulations. Which of the following is a key characteristic of a sole trader?
A. Limited liability
Correct B. Unlimited liability
C. Partnership
D. Company

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A company's foreign trade involves importing goods from a foreign country. Which of the following is a key advantage of importing goods?
A. Reduced production costs
B. Increased market share
Correct C. Access to new markets
D. Improved product quality

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company's marketing strategy involves a mix of advertising and public relations. Which of the following is a key benefit of using advertising in a marketing mix?
Correct A. Building brand awareness
B. Creating a sense of urgency
C. Establishing credibility
D. Generating leads

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company's transport strategy involves using a combination of road and rail transport. Which of the following is a key advantage of using rail transport?
A. Reduced fuel costs
B. Increased speed
C. Improved safety
Correct D. Environmental benefits

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
In a perfectly competitive market, the law of diminishing marginal utility implies that as the quantity of a good increases, the marginal utility of each additional unit decreases. However, this does not necessarily mean that the total utility of the good will also decrease. Explain why.
A. The total utility of the good will always decrease as the quantity increases.
B. The total utility of the good will remain constant as the quantity increases.
Correct C. The total utility of the good will increase as the quantity increases, but at a decreasing rate.
D. The total utility of the good will decrease as the quantity increases, but at a decreasing rate.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A firm is considering two different production processes to manufacture a product. Process A requires an initial investment of ₦1,000,000 and has a fixed cost of ₦500,000 per unit. Process B requires an initial investment of ₦500,000 and has a fixed cost of ₦200,000 per unit. If the firm produces 1,000 units of the product, which process will result in lower total costs?
A. Process A
Correct B. Process B
C. Both processes will result in the same total costs.
D. Neither process will result in lower total costs.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A company is considering exporting its product to a foreign market. The company has estimated that the cost of exporting the product will be ₦200,000 and the revenue from the sale of the product will be ₦500,000. If the company has a 20% tax rate, what is the net profit from the export transaction?
Correct A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A firm is considering two different modes of transportation to transport its products. Mode A costs ₦500 per unit and has a fixed cost of ₦100,000. Mode B costs ₦300 per unit and has a fixed cost of ₦200,000. If the firm transports 1,000 units of the product, which mode will result in lower total costs?
A. Mode A
Correct B. Mode B
C. Both modes will result in the same total costs.
D. Neither mode will result in lower total costs.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A company is considering investing in a new project. The company has estimated that the initial investment will be ₦1,500,000 and the annual cash inflows will be ₦500,000. If the company requires a minimum return on investment of 15%, what is the present value of the project?
Correct A. ₦1,200,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
The Consumer Protection Act of 1999 provides for the establishment of the National Consumer Protection Agency. What is the primary function of this agency?
A. To investigate consumer complaints and provide redress
Correct B. To regulate consumer transactions and enforce consumer rights
C. To educate consumers on their rights and responsibilities
D. To provide counseling services to consumers

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A company imports goods from a foreign country and sells them in Nigeria. What type of trade is this?
A. Export
B. Import
C. Domestic trade
Correct D. International trade

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A bank offers a loan of ₦500,000 at an interest rate of 12% per annum. What is the annual interest on the loan?
Correct A. ₦60,000
B. ₦50,000
C. ₦40,000
D. ₦30,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A company purchases an insurance policy that covers against fire damage. What type of insurance is this?
A. Life insurance
Correct B. Property insurance
C. Liability insurance
D. Casualty insurance

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
The introduction of the Euro in 1999 marked a significant change in the European monetary system. What was the primary effect of this change?
A. The abolition of national currencies
B. The introduction of a single interest rate
Correct C. The creation of a single currency zone
D. The establishment of a European central bank

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A company is considering two different marketing strategies to promote its new product. Strategy A involves a high upfront cost of ₦1.5 million, but it is expected to generate a profit of ₦2.5 million in the first year. Strategy B involves a lower upfront cost of ₦500,000, but it is expected to generate a profit of ₦1.8 million in the first year. Which strategy should the company choose?
Correct A. Strategy A
B. Strategy B
C. Both strategies are equally profitable
D. Neither strategy is profitable

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A warehouse has a storage capacity of 10,000 units. The warehouse is currently 70% full, with 7,000 units stored. If 1,500 units are added to the warehouse, what is the new percentage of capacity?
A. 60%
Correct B. 65%
C. 70%
D. 75%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A company has a sole proprietorship business structure. The owner, John, has a 50% stake in the business. If the business generates a profit of ₦1.2 million, how much will John receive as his share of the profit?
Correct A. ₦600,000
B. ₦800,000
C. ₦1.2 million
D. ₦1.5 million

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A company has a 30% chance of winning a contract worth ₦5 million. If the company wins the contract, it will pay a 10% commission to the sales representative. What is the expected value of the commission?
Correct A. ₦1.5 million
B. ₦1.8 million
C. ₦2.1 million
D. ₦2.5 million

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company has a warehouse with a storage capacity of 5,000 units. The warehouse is currently 50% full, with 2,500 units stored. If 1,000 units are added to the warehouse, what is the new percentage of capacity?
A. 55%
Correct B. 60%
C. 65%
D. 70%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the effect of an increase in the price of a complementary good on the supply curve?
Correct A. The supply curve shifts to the left.
B. The supply curve shifts to the right.
C. The supply curve remains unchanged.
D. The supply curve becomes vertical.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A firm's production function is given by Q = 2L^2 + 3K^2, where Q is the quantity produced, L is labor, and K is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the percentage change in the quantity produced?
A. 10%
B. 15%
Correct C. 20%
D. 25%

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A consumer's budget constraint is given by P1Q1 + P2Q2 = 100, where P1 and P2 are the prices of two goods, and Q1 and Q2 are the quantities consumed. If the price of good 1 increases by 20% and the price of good 2 decreases by 15%, what is the new budget constraint?
A. P1Q1 + P2Q2 = 120
B. P1Q1 + P2Q2 = 110
Correct C. P1Q1 + P2Q2 = 105
D. P1Q1 + P2Q2 = 100

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A firm's cost function is given by TC = 2L + 3K, where TC is the total cost, L is labor, and K is capital. If the firm's labor and capital are increased by 10% and 5% respectively, what is the percentage change in the total cost?
A. 5%
Correct B. 10%
C. 15%
D. 20%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A consumer's indifference curve is given by U = 2Q1 + Q2, where U is the utility, Q1 is the quantity of good 1, and Q2 is the quantity of good 2. If the price of good 1 increases by 20% and the price of good 2 decreases by 15%, what is the new indifference curve?
A. U = 2Q1 + Q2
Correct B. U = 2.2Q1 + Q2
C. U = 2Q1 + 1.2Q2
D. U = 2.2Q1 + 1.2Q2

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support