POST UTME BSU 2018 Commerce | Objective

Are you preparing for POST UTME BSU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
A sole trader's business is registered under the Companies and Allied Matters Act 2020. What is the primary implication of this registration?
A. The sole trader is now a company
B. The sole trader is exempt from tax
C. The sole trader's business is now a partnership
Correct D. The sole trader's business is now a limited liability company

Correct Answer: D

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Question 2
A company's Memorandum and Articles of Association are filed with the Corporate Affairs Commission. What is the purpose of this filing?
A. To register the company
B. To obtain a business license
C. To file the company's tax returns
Correct D. To make the company's Memorandum and Articles of Association publicly available

Correct Answer: D

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Question 3
A consumer purchases a product from a company that has a warranty period of 2 years. The product develops a fault after 1 year and 6 months. What is the consumer's entitlement under the Consumer Protection Act?
A. The consumer is entitled to a full refund
B. The consumer is entitled to a partial refund
Correct C. The consumer is entitled to a replacement product
D. The consumer is not entitled to any refund or replacement

Correct Answer: C

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Question 4
A company's financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS). What is the primary purpose of these financial statements?
Correct A. To provide a true and fair view of the company's financial position
B. To provide a summary of the company's financial transactions
C. To provide a detailed analysis of the company's financial performance
D. To provide a comparison of the company's financial position with that of its competitors

Correct Answer: A

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Question 5
A bank's cash reserve ratio is 10%. If the bank has a cash reserve of ₦1,000,000, what is the maximum amount of credit it can extend to customers?
Correct A. ₦9,000,000
B. ₦10,000,000
C. ₦11,000,000
D. ₦12,000,000

Correct Answer: A

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Question 6
A company's marketing strategy involves a mix of both push and pull strategies. Which of the following is a characteristic of a pull strategy?
A. Creating awareness about the product among the target audience
B. Encouraging customers to buy the product by offering discounts
C. Providing incentives to intermediaries to promote the product
Correct D. Creating a need for the product among the target audience

Correct Answer: D

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Question 7
A producer of goods has a production function given by Q = 2L^0.5 * K^0.5. If the producer wants to increase the output by 20% and the current level of capital is 100, what should be the new level of labor?
A. 50
B. 60
Correct C. 70
D. 80

Correct Answer: C

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Question 8
A consumer protection agency has received a complaint from a customer who was sold a defective product. The product was sold for ₦10,000 and the customer is seeking a refund of ₦8,000. If the agency decides to award the customer a refund of ₦6,000, what is the percentage of the refund awarded?
A. 60%
B. 70%
Correct C. 80%
D. 90%

Correct Answer: C

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Question 9
A bank has a reserve requirement of 20% and a cash reserve of ₦1,000,000. If the bank wants to increase its lending capacity by ₦500,000, what is the minimum amount of deposits it needs to attract?
A. ₦2,500,000
B. ₦3,000,000
Correct C. ₦3,500,000
D. ₦4,000,000

Correct Answer: C

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Question 10
A firm has a production function given by Q = 2L^0.5 * K^0.5. If the firm wants to increase the output by 20% and the current level of capital is 100, what should be the new level of labor?
A. 50
B. 60
Correct C. 70
D. 80

Correct Answer: C

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Question 11
A company is considering two different modes of transportation for its goods: road and rail. The cost of transporting goods by road is ₦150 per unit, while the cost of transporting goods by rail is ₦120 per unit. If the company expects to transport 500 units of goods, what is the total cost of transportation if the company uses a combination of both road and rail?
A. ₦75,000
Correct B. ₦80,000
C. ₦85,000
D. ₦90,000

Correct Answer: B

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Question 12
A sole trader has a business that generates an average profit of ₦50,000 per month. If the sole trader wants to save ₦200,000 for a new business venture, how many months will it take to save the amount?
A. 4 months
Correct B. 6 months
C. 8 months
D. 10 months

Correct Answer: B

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Question 13
A company has a marketing budget of ₦1,500,000. If the company wants to allocate 30% of the budget to advertising and 20% to public relations, what is the amount allocated to public relations?
A. ₦300,000
Correct B. ₦350,000
C. ₦400,000
D. ₦450,000

Correct Answer: B

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Question 14
A company is considering two different modes of payment for its customers: cash and credit. If the company expects to receive ₦500,000 in cash and ₦200,000 in credit, what is the total amount received?
Correct A. ₦700,000
B. ₦600,000
C. ₦500,000
D. ₦400,000

Correct Answer: A

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Question 15
A company has a business that generates an average profit of ₦75,000 per month. If the company wants to increase its profit by 20%, what is the new profit?
A. ₦90,000
B. ₦100,000
Correct C. ₦110,000
D. ₦120,000

Correct Answer: C

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Question 16
In a sole proprietorship business, the owner's personal assets are not protected from business liabilities. What is the main reason for this?
A. The business is not registered as a separate entity.
B. The owner has not obtained necessary licenses and permits.
Correct C. The owner's personal assets are not separated from business assets.
D. The business does not have a separate bank account.

Correct Answer: C

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Question 17
A company has a capital structure consisting of 60% debt and 40% equity. What is the cost of capital for this company?
A. 6%
Correct B. 8%
C. 10%
D. 12%

Correct Answer: B

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Question 18
A firm is considering two marketing strategies: a high-low pricing strategy and a penetration pricing strategy. Which strategy is more likely to increase market share?
A. High-low pricing strategy
Correct B. Penetration pricing strategy
C. Both strategies are equally effective
D. Neither strategy is effective

Correct Answer: B

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Question 19
A company is considering exporting its products to a foreign market. What is the main advantage of exporting?
A. Increased market share
B. Reduced competition
Correct C. Increased revenue
D. Reduced costs

Correct Answer: C

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Question 20
A firm is considering investing in a new project. The project has a net present value (NPV) of ₦1,000,000 and a payback period of 5 years. What is the main advantage of this project?
A. High NPV
Correct B. Short payback period
C. High return on investment (ROI)
D. Low risk

Correct Answer: B

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Question 21
A company's sole trader has a warehouse with a capacity to store 500 units of goods. If the warehouse is currently 75% full, how many units of goods can be added before it reaches its maximum capacity?
Correct A. 375
B. 400
C. 425
D. 450

Correct Answer: A

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Question 22
A producer of electronics has a production line that can produce 200 units of a product per hour. If the production line operates for 8 hours a day, what is the total number of units produced in a day?
A. 1600
B. 1800
Correct C. 2000
D. 2200

Correct Answer: C

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Question 23
A consumer protection agency has identified a company that has been selling a product with a false label. The label states that the product is made of 100% cotton, but it is actually made of 80% polyester and 20% cotton. What is the percentage of the product that is not cotton?
A. 20%
Correct B. 30%
C. 40%
D. 50%

Correct Answer: B

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Question 24
A company has a warehouse with a capacity to store 1000 units of goods. If the warehouse is currently 50% full, how many units of goods can be added before it reaches its maximum capacity?
A. 500
Correct B. 750
C. 1000
D. 1250

Correct Answer: B

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Question 25
A producer of electronics has a production line that can produce 300 units of a product per hour. If the production line operates for 6 hours a day, what is the total number of units produced in a day?
A. 1800
B. 2000
Correct C. 2200
D. 2400

Correct Answer: C

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