POST UTME BOWEN UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering two different specialization options for its products. Option A involves specializing in a single product, while Option B involves diversifying into multiple products. If the company expects to produce 10,000 units of the product per year, which option should it choose?
A. Option A
B. Option B
C. Both options are equally effective
D. Neither option is effective
Question 2
A bank is considering the introduction of a new credit card product. The product will have a 20% annual interest rate and a 2% annual fee. What is the effective annual interest rate of the product?
A. 22%
B. 24%
C. 26%
D. 28%
Question 3
A company has a production process that involves the use of a chemical substance. The company has been using the substance for several years without any issues. However, recent studies have shown that the substance may be hazardous to the environment. What is the primary responsibility of the company in this situation?
A. To continue using the substance as usual
B. To discontinue the use of the substance immediately
C. To conduct further research on the substance's effects
D. To consult with regulatory authorities
Question 4
A warehouse manager wants to optimize storage space by arranging boxes of different sizes. Which of the following storage arrangements would result in the most efficient use of space?
A. First-In-First-Out (FIFO)
B. Last-In-First-Out (LIFO)
C. FIFO with optimal box placement
D. LIFO with random box placement
Question 5
A firm exports 100 units of a product to a foreign country. The product sells for 10 per unit in the foreign market. If the exchange rate is 1 USD = 400 Naira, what is the total value of the export in Naira?
A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦800,000
Question 6
A company is considering the introduction of a new marketing strategy. The strategy has a fixed cost of ₦400,000 and a variable cost of ₦200 per unit. The selling price of the product is ₦400 per unit. If the company wants to make a profit of ₦250,000, how many units of the product must it sell?
A. 2,500
B. 3,500
C. 4,500
D. 5,500
Question 7
A company is considering outsourcing its logistics operations to a third-party provider. What are the potential benefits of this decision?
A. Increased costs and reduced efficiency
B. Improved customer service and increased market share
C. Reduced costs and improved supply chain management
D. No impact on the company's operations
Question 8
A company has two production plants, A and B. Plant A produces 100 units of a product per hour, while plant B produces 150 units per hour. If the company operates both plants for 8 hours a day, what is the total quantity produced per day?
A. 1200
B. 1500
C. 1800
D. 2000
Question 9
A company purchases an insurance policy to protect against business risks. Which of the following is a type of insurance policy that covers against loss of income due to unforeseen events?
A. Liability insurance
B. Property insurance
C. Business interruption insurance
D. Workers' compensation insurance
Question 10
A sole trader's business is exposed to the risk of a major fire that could result in significant financial losses. To mitigate this risk, the sole trader decides to purchase a fire insurance policy. Which of the following types of insurance policies would be most suitable for this business?
A. Fire insurance policy with a high deductible
B. Fire insurance policy with a low premium
C. Business interruption insurance policy
D. Liability insurance policy
Question 11
A firm has a production function Q = 50L^0.25, where Q is the quantity produced and L is the labor input. If the firm's labor input is 625 units, what is the quantity produced?
A. 5
B. 10
C. 15
D. 20
Question 12
A consumer protection agency has received a complaint from a customer who purchased a product online. The customer alleges that the product was not as described and was defective. The agency has obtained evidence that the seller had knowledge of the defect and failed to disclose it to the customer. What is the legal basis for the agency's action against the seller?
A. Consumer Protection Act 2019
B. Sales of Goods Act 1979
C. Unfair Contract Terms Act 1977
D. Distance Selling Regulations 2000
Question 13
A company is considering the purchase of a new machine that will cost ₦500,000. The machine is expected to last for 5 years and will save the company ₦200,000 per year in labor costs. What is the net present value of the machine, assuming a discount rate of 10%?
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000
Question 14
A bank's return on assets (ROA) is calculated as net income divided by total assets. If a bank has a net income of ₦120 million and total assets of ₦10 billion, what is its ROA?
A. 0.012
B. 0.0120
C. 0.01200
D. 0.0012
Question 15
A warehouse has a storage capacity of 10,000 units. If 8,000 units are already stored, what percentage of the warehouse is occupied?
A. 80%
B. 85%
C. 90%
D. 95%

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