POST UTME BELLS UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A business owner purchases an insurance policy to protect against losses due to fire. The policy has a deductible of ₦50,000. If the business suffers a loss of ₦200,000 due to fire, how much will the insurance company pay?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 2
A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300 respectively. Using the budget constraint, what is the maximum quantity of good A that the consumer can buy?
A. 2
B. 3
C. 4
D. 5
Question 3
A company's marketing mix consists of product, price, promotion, and place. Which of the following is NOT a part of the marketing mix?
A. Product
B. Price
C. Promotion
D. Distribution
Question 4
A company has a production cost of ₦500 per unit. The selling price is ₦700 per unit. What is the profit per unit?
A. ₦100
B. ₦150
C. ₦200
D. ₦250
Question 5
A bank's cash reserve ratio is 20%. If the bank has a cash reserve of ₦1,000,000 and it wants to increase its lending capacity by ₦500,000, how much more cash must it hold in reserve?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 6
A warehouse manager wants to store 500 boxes of goods in a warehouse with a capacity of 2000 square feet. If each box occupies 0.5 square feet, how many warehouses will be needed?
A. 2
B. 3
C. 4
D. 5
Question 7
A company's marketing strategy involves a 10% discount on all products sold during a promotional period. If the original price of a product is ₦1000, what is the new price after the discount?
A. ₦900
B. ₦950
C. ₦1000
D. ₦1050
Question 8
A company's Memorandum of Association (MoA) outlines its objectives and powers. Which of the following is NOT a typical objective of a company?
A. To make a profit
B. To engage in charitable activities
C. To acquire and hold shares in other companies
D. To conduct research and development
Question 9
A company is considering two different production processes to produce a product. Process A requires an initial investment of ₦100,000 and has a variable cost of ₦50 per unit produced. Process B requires an initial investment of ₦150,000 and has a variable cost of ₦30 per unit produced. If the company produces 1000 units of the product, what is the total cost of production for each process?
A. Process A: ₦150,000, Process B: ₦120,000
B. Process A: ₦120,000, Process B: ₦150,000
C. Process A: ₦100,000, Process B: ₦100,000
D. Process A: ₦150,000, Process B: ₦150,000
Question 10
A firm's break-even point is the point at which its
A. total revenue equals its total fixed costs
B. total revenue equals its total variable costs
C. total revenue equals its total fixed and variable costs
D. total revenue equals its total contribution margin
Question 11
A firm's risk management strategy involves identifying and assessing
A. all possible risks
B. only financial risks
C. only operational risks
D. only strategic risks
Question 12
The Central Bank of Nigeria (CBN) uses the following monetary policy tools to control inflation:
A. Open Market Operations (OMO), Reserve Requirements, and Moral Suasion
B. Discount Rate, Reserve Requirements, and Moral Suasion
C. Open Market Operations (OMO), Discount Rate, and Moral Suasion
D. Reserve Requirements, Moral Suasion, and Foreign Exchange Intervention
Question 13
A firm is considering launching a new product in a foreign market. The product has a high demand in the target market, but the firm is concerned about the high transportation costs. What is the best way for the firm to minimize its transportation costs?
A. Use a freight forwarder
B. Use a shipping company
C. Use a logistics company
D. Use a combination of the above
Question 14
A consumer has a credit card with a balance of ₦50,000. The interest rate is 20% per annum. If the consumer makes a payment of ₦10,000, what is the new balance?
A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000
Question 15
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is ₦50, how many units will it sell?
A. 20
B. 40
C. 60
D. 80

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