POST UTME CHRISTOPHER UNIVERSITY 2022 Commerce | Objective

Are you preparing for POST UTME CHRISTOPHER UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2022 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
In a sole trade business, what is the primary advantage of using a sole trader structure?
A. Limited liability
B. Easy to set up
Correct C. Flexibility in decision-making
D. No tax benefits

Correct Answer: C

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Question 2
A company is considering a merger with another company. What is the primary reason for this decision?
Correct A. To increase market share
B. To reduce costs
C. To improve product quality
D. To expand into new markets

Correct Answer: A

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Question 3
A consumer purchases a product online and receives a damaged item. What is the consumer's right under the Consumer Protection Act?
Correct A. To return the product for a full refund
B. To exchange the product for a similar item
C. To claim compensation for damages
D. To report the seller to the authorities

Correct Answer: A

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Question 4
A company uses a just-in-time (JIT) inventory system. What is the primary benefit of this system?
Correct A. Reduced inventory costs
B. Improved product quality
C. Increased efficiency in production
D. Enhanced customer satisfaction

Correct Answer: A

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Question 5
A company is considering a foreign market entry strategy. What is the primary reason for this decision?
A. To increase market share
B. To reduce costs
C. To improve product quality
Correct D. To expand into new markets

Correct Answer: D

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Question 6
A company's sole trader has a warehouse with a capacity of 1000 units. If the company's sales are expected to increase by 20% next quarter, what is the minimum number of units the warehouse must be able to store to meet the increased demand?
A. 1200
B. 1100
Correct C. 1300
D. 1400

Correct Answer: C

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Question 7
A company has two warehouses, A and B, with capacities of 500 and 300 units respectively. If the company's sales are expected to increase by 15% next quarter, what is the minimum number of units the warehouses must be able to store to meet the increased demand?
A. 700
B. 800
C. 900
Correct D. 1000

Correct Answer: D

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Question 8
A company has a warehouse with a capacity of 800 units. If the company's sales are expected to increase by 25% next quarter, what is the minimum number of units the warehouse must be able to store to meet the increased demand?
A. 1000
B. 1100
C. 1200
Correct D. 1300

Correct Answer: D

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Question 9
A company has two warehouses, A and B, with capacities of 400 and 200 units respectively. If the company's sales are expected to increase by 10% next quarter, what is the minimum number of units the warehouses must be able to store to meet the increased demand?
A. 500
B. 600
C. 700
Correct D. 800

Correct Answer: D

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Question 10
A company has a warehouse with a capacity of 600 units. If the company's sales are expected to increase by 20% next quarter, what is the minimum number of units the warehouse must be able to store to meet the increased demand?
A. 720
B. 800
C. 900
Correct D. 1000

Correct Answer: D

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Question 11
In a sole trade business, the owner's personal assets are not protected from business liabilities. What is the primary reason for this?
A. Lack of separate business bank account
B. Insufficient business insurance
Correct C. Personal assets are not protected from business liabilities
D. Inadequate accounting records

Correct Answer: C

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Question 12
A company has a capital structure consisting of 60% equity and 40% debt. 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 13
A consumer purchases a product with a price of ₦1,000 and a discount of 10%. What is the amount paid by the consumer?
Correct A. ₦900
B. ₦950
C. ₦1,000
D. ₦1,050

Correct Answer: A

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Question 14
A company has a policy of paying its employees a 10% bonus on their annual salary. If an employee's annual salary is ₦500,000, what is the amount of the bonus?
A. ₦50,000
B. ₦55,000
Correct C. ₦60,000
D. ₦65,000

Correct Answer: C

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Question 15
A bank offers a 5-year fixed deposit account with an interest rate of 12% per annum. If a customer deposits ₦100,000, what is the total amount at the end of the 5-year period?
Correct A. ₦163,217.89
B. ₦165,000
C. ₦167,000
D. ₦169,000

Correct Answer: A

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Question 16
In a perfectly competitive market, the demand curve for a firm's product is its marginal revenue curve. What is the implication of this for the firm's profit-maximizing output level?
Correct A. The firm will produce at the point where MR = MC
B. The firm will produce at the point where MR = P
C. The firm will produce at the point where MR = ATC
D. The firm will produce at the point where MR = AFC

Correct Answer: A

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Question 17
A firm's total revenue (TR) is given by the equation TR = P × Q, where P is the price per unit and Q is the quantity sold. If the price per unit is 10 and the quantity sold is 100 units, what is the total revenue?
A. ₦1000
Correct B. ₦10000
C. ₦100000
D. ₦1000000

Correct Answer: B

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Question 18
A company's cost of goods sold (COGS) is 500, and its selling price is 100 per unit. If it sells 50 units, what is the gross profit?
A. ₦2500
B. ₦5000
Correct C. ₦7500
D. ₦10000

Correct Answer: C

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Question 19
A firm's marginal cost (MC) is given by the equation MC = 2Q + 10, where Q is the quantity produced. If the firm produces 5 units, what is the marginal cost?
A. ₦20
B. ₦30
Correct C. ₦40
D. ₦50

Correct Answer: C

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Question 20
A company's average fixed cost (AFC) is given by the equation AFC = 100 / Q, where Q is the quantity produced. If the company produces 10 units, what is the average fixed cost?
A. ₦10
B. ₦20
C. ₦30
Correct D. ₦40

Correct Answer: D

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Question 21
A bank's cash reserve ratio is 10%. If the bank has a total deposit of ₦10,000,000, how much cash must it reserve?
Correct A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: A

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Question 22
A company's profit is ₦500,000. If it has a tax rate of 25%, what is its net profit?
Correct A. ₦375,000
B. ₦375,000
C. ₦375,000
D. ₦375,000

Correct Answer: A

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Question 23
A consumer protection law requires that a product's packaging must be 80% recyclable. If a company's packaging is 90% recyclable, is it in compliance with the law?
A. Yes
Correct B. No
C. Maybe
D. It depends

Correct Answer: B

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Question 24
A foreign trade agreement requires that a country's exports must be 50% of its total production. If a country's total production is 100 units, how many units must it export?
Correct A. 50 units
B. 75 units
C. 100 units
D. 125 units

Correct Answer: A

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Question 25
A warehouse's storage capacity is 1000 units. If it has 500 units of stock, what is its utilization rate?
Correct A. 50%
B. 60%
C. 70%
D. 80%

Correct Answer: A

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