POST UTME BSU 2025 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 2025 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
A sole trader's business is considered a separate legal entity from its owner. However, the owner's personal assets are still at risk in case of business debts. What is the name of this type of business?
Correct A. Sole Trader
B. Partnership
C. Limited Liability Company
D. Joint Venture

Correct Answer: A

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Question 2
A company's articles of association state that a minimum of 5 directors are required to run the business. However, the company has only 3 directors. What is the legal consequence of this situation?
A. The company is dissolved
B. The company is put into liquidation
C. The company is wound up
Correct D. The company is in breach of its articles of association

Correct Answer: D

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Question 3
A consumer purchases a product from a retailer, but the product is defective. The consumer returns the product to the retailer, who refuses to refund the money. What law protects the consumer's rights in this situation?
A. Sale of Goods Act
Correct B. Consumer Protection Act
C. Unfair Contract Terms Act
D. Unfair Trading Practices Directive

Correct Answer: B

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Question 4
A company's financial statements show a net loss of ₦1,000,000. However, the company's cash flow statement shows a net increase of ₦500,000. What is the implication of this situation?
A. The company is insolvent
Correct B. The company is experiencing cash flow problems
C. The company is generating positive cash flow
D. The company's financial statements are inaccurate

Correct Answer: B

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Question 5
A company's board of directors has the power to appoint and remove directors. However, the company's articles of association state that the shareholders have the final say in the appointment and removal of directors. What is the correct interpretation of this situation?
A. The board of directors has absolute power to appoint and remove directors
Correct B. The shareholders have the final say in the appointment and removal of directors
C. The board of directors and shareholders have equal power to appoint and remove directors
D. The company's articles of association are inconsistent with the Companies Act

Correct Answer: B

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Question 6
A company's supply chain involves transporting goods from the factory to the warehouse, and then to the customer. If the company uses a just-in-time inventory system, what is the primary benefit of this system?
A. Reduced inventory costs
B. Improved customer satisfaction
Correct C. Increased supply chain efficiency
D. Enhanced product quality

Correct Answer: C

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Question 7
A firm's insurance policy covers losses due to natural disasters. If the policy has a deductible of ₦100,000 and the firm suffers a loss of ₦500,000, what is the amount the firm must pay out of pocket?
A. ₦400,000
B. ₦300,000
C. ₦200,000
Correct D. ₦100,000

Correct Answer: D

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Question 8
A bank's investment portfolio consists of stocks, bonds, and mutual funds. If the bank's investment manager allocates 40% of the portfolio to stocks, 30% to bonds, and 30% to mutual funds, what is the total percentage allocated to stocks and bonds?
Correct A. 70%
B. 60%
C. 50%
D. 40%

Correct Answer: A

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Question 9
A company's warehouse has a storage capacity of 10,000 units. If the company receives a shipment of 5,000 units and already has 3,000 units in stock, what is the total number of units in the warehouse?
A. 8,000
B. 9,000
Correct C. 10,000
D. 11,000

Correct Answer: C

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Question 10
A firm's cash flow statement shows a net increase in cash of ₦500,000. If the firm's beginning cash balance was ₦1,000,000, what is the firm's ending cash balance?
Correct A. ₦1,500,000
B. ₦1,000,000
C. ₦500,000
D. ₦0

Correct Answer: A

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Question 11
A company's marketing strategy involves creating a sense of urgency among its customers. This is an example of a _______ tactic.
Correct A. Scarcity
B. Loss aversion
C. Social proof
D. Authority

Correct Answer: A

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Question 12
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). Which of the following is a consequence of this?
A. The business is not liable for its debts
B. The business cannot open a bank account
Correct C. The business is not entitled to claim tax relief
D. The business is not required to file annual returns

Correct Answer: C

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Question 13
A company's financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS). Which of the following is a characteristic of IFRS?
A. IFRS is based on historical cost accounting
B. IFRS requires the use of cash flow statements
Correct C. IFRS is based on the accrual accounting method
D. IFRS is only used by non-profit organizations

Correct Answer: C

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Question 14
A consumer protection agency has received a complaint from a customer who was sold a defective product. The agency has the power to _______ the company.
A. Compel the company to refund the customer's money
B. Order the company to replace the defective product
C. Impose a fine on the company
Correct D. Suspend the company's business license

Correct Answer: D

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Question 15
A company's marketing strategy involves creating a sense of exclusivity among its customers. This is an example of a _______ tactic.
A. Scarcity
B. Loss aversion
C. Social proof
Correct D. Authority

Correct Answer: D

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Question 16
In a consumer protection scenario, a company is found to have engaged in unfair business practices, resulting in significant financial losses for its customers. Which of the following legal remedies would be most appropriate for the affected consumers?
Correct A. Class action lawsuit
B. Individual lawsuits
C. Administrative proceedings
D. Negotiation with the company

Correct Answer: A

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Question 17
A bank offers a credit card with a 20% annual interest rate and a 2% annual fee. If a customer has a balance of ₦10,000 and makes a payment of ₦5,000, what is the new balance after one year?
A. ₦15,000
Correct B. ₦12,500
C. ₦11,000
D. ₦10,500

Correct Answer: B

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Question 18
A warehouse manager wants to optimize storage space by arranging boxes of different sizes. If the boxes are 2 meters long, 1.5 meters wide, and 1 meter high, and the warehouse has a ceiling height of 3 meters, what is the maximum number of boxes that can be stacked?
A. 10
B. 12
Correct C. 15
D. 18

Correct Answer: C

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Question 19
A company wants to launch a new product and is considering two marketing strategies: social media advertising and influencer marketing. Which strategy is most likely to reach a younger demographic?
Correct A. Social media advertising
B. Influencer marketing
C. Content marketing
D. Email marketing

Correct Answer: A

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Question 20
A life insurance policy has a premium of ₦50,000 per year and a death benefit of ₦1,000,000. If the policyholder dies after 5 years, what is the total payout to the beneficiary?
Correct A. ₦2,500,000
B. ₦2,000,000
C. ₦1,750,000
D. ₦1,500,000

Correct Answer: A

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Question 21
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will
A. increase
Correct B. decrease
C. remain constant
D. become elastic

Correct Answer: B

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Question 22
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm wants to increase output by 20% while keeping labor constant, by how much should it increase capital?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 23
A company is considering launching a new product in a foreign market. The company's marketing manager estimates that the demand for the product will be given by the equation Q = 100 - 2P, where Q is quantity demanded and P is price. If the company wants to maximize its revenue, what price should it charge for the product?
A. ₦50
B. ₦75
Correct C. ₦100
D. ₦125

Correct Answer: C

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Question 24
A firm's cost function is given by C = 2L + 3K, where C is cost, L is labor, and K is capital. If the firm wants to minimize its cost while producing 100 units of output, how much labor and capital should it use?
Correct A. L = 20, K = 30
B. L = 30, K = 20
C. L = 40, K = 10
D. L = 10, K = 40

Correct Answer: A

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Question 25
A company is considering investing in a new project. The project's cash flows are given by the following table: | Year | Cash Flow | | --- | --- | | 0 | -100 | | 1 | 120 | | 2 | 150 | | 3 | 180 | | 4 | 200 | If the company's cost of capital is 10%, what is the present value of the project's cash flows?
A. ₦1000
Correct B. ₦1200
C. ₦1500
D. ₦1800

Correct Answer: B

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