POST UTME CRAWFORD UNIVERSITY 2025 Commerce | Objective

Are you preparing for POST UTME CRAWFORD UNIVERSITY 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.

Practice these randomly selected questions to test your readiness.

Question 1
A bank's decision to increase its interest rates to combat inflation is an example of a(n)
Correct A. Monetary Policy
B. Fiscal Policy
C. Supply-Side Policy
D. Demand-Side Policy

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A company's sole trader is responsible for all the profits and losses of the business. This is an example of a(n)
A. Limited Liability
B. Unlimited Liability
C. Partnership
Correct D. Sole Trader

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A marketing strategy that focuses on creating a unique selling proposition (USP) to differentiate a product from its competitors is known as
A. Segmentation
B. Targeting
C. Positioning
Correct D. Differentiation

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A life insurance policy that pays a lump sum to the policyholder's beneficiaries in the event of their death is known as
Correct A. Term Life Insurance
B. Whole Life Insurance
C. Endowment Insurance
D. Mortgage Redemption Insurance

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company's financial statements, including its balance sheet and income statement, are audited by an independent auditor to ensure their accuracy and reliability. This is an example of a(n)
A. Internal Audit
Correct B. External Audit
C. Management Audit
D. Operational Audit

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A company has two warehouses, A and B, with capacities of 1000 and 800 units, respectively. Warehouse A has 500 units of product X, while Warehouse B has 700 units of product Y. If the company wants to store 1200 units of product Z, which warehouse should it use, and how many units of product Z can be stored?
A. Warehouse A, 500 units
Correct B. Warehouse B, 700 units
C. Warehouse A, 800 units
D. Warehouse B, 1000 units

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A sole trader, Mr. Ade, has a business that sells electronics. He has a profit of ₦150,000 and a turnover of ₦1,500,000. What is his gross profit percentage?
A. 10%
Correct B. 15%
C. 20%
D. 25%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A company has a production cost of ₦500,000 and a selling price of ₦1,200,000. If it produces 1000 units, what is its contribution per unit?
A. ₦600
Correct B. ₦800
C. ₦1000
D. ₦1200

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A consumer, Mrs. Adebayo, buys a product for ₦10,000 and sells it for ₦15,000. If she incurs a cost of ₦2,000, what is her profit?
A. ₦3,000
Correct B. ₦5,000
C. ₦7,000
D. ₦10,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A company has a risk management policy that requires it to maintain a cash reserve of 20% of its turnover. If its turnover is ₦10,000,000, what is the minimum amount of cash it should have in reserve?
A. ₦1,000,000
Correct B. ₦2,000,000
C. ₦3,000,000
D. ₦4,000,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
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 sole trader cannot sue or be sued in their personal capacity.
B. The sole trader's business is not entitled to tax relief.
C. The sole trader's business is not eligible for government contracts.
Correct D. The sole trader's business is not required to file annual returns.

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A company's memorandum of association states that the company's business is to manufacture and sell electrical appliances. However, the company has recently started selling electronic gadgets. Which of the following is a consequence of this?
A. The company's memorandum of association needs to be amended.
Correct B. The company's business is not in compliance with the Companies and Allied Matters Act (CAMA).
C. The company's directors are personally liable for any losses incurred.
D. The company's shareholders are entitled to a refund of their investment.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A warehouse manager is responsible for storing goods worth ₦5 million. The manager uses a first-in-first-out (FIFO) inventory system. If 10% of the goods are damaged during storage, what is the total value of the damaged goods?
Correct A. ₦500,000
B. ₦500,000
C. ₦500,000
D. ₦500,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A company exports goods worth ₦10 million to a foreign country. The company uses a letter of credit to secure payment. If the foreign buyer fails to pay, what is the company's recourse?
A. The company can sue the foreign buyer in their home country.
Correct B. The company can claim the payment from the bank that issued the letter of credit.
C. The company can cancel the letter of credit and claim the payment from the foreign buyer.
D. The company can negotiate a new payment plan with the foreign buyer.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A company purchases an insurance policy to cover against losses due to fire. The policy has a deductible of ₦500,000. If the company suffers a loss of ₦2 million due to fire, what is the amount payable by the insurer?
Correct A. ₦1.5 million
B. ₦1.5 million
C. ₦1.5 million
D. ₦1.5 million

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
The following diagram shows a production process for a company. What is the primary benefit of this process?
Correct A. Increased efficiency
B. Reduced labor costs
C. Improved product quality
D. Enhanced customer satisfaction

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A company has a production process that involves the following steps: planning, production, and distribution. What is the primary goal of the planning step?
Correct A. To determine the market demand for the product
B. To identify the raw materials needed for production
C. To establish the production schedule
D. To set the price of the product

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A company has a production process that involves the following steps: planning, production, and distribution. What is the primary goal of the production step?
A. To produce the product in large quantities
Correct B. To ensure the quality of the product
C. To reduce the production costs
D. To increase the production speed

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A company has a production process that involves the following steps: planning, production, and distribution. What is the primary goal of the distribution step?
Correct A. To deliver the product to the customer
B. To store the product in a warehouse
C. To transport the product to the market
D. To sell the product to the customer

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company has a production process that involves the following steps: planning, production, and distribution. What is the primary benefit of the production process?
A. Increased efficiency
B. Reduced labor costs
Correct C. Improved product quality
D. Enhanced customer satisfaction

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A company has a production process that involves the following steps: planning, production, and distribution. What is the primary goal of the planning step?
Correct A. To determine the market demand for the product
B. To identify the raw materials needed for production
C. To establish the production schedule
D. To set the price of the product

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A company has a production process that involves the following steps: planning, production, and distribution. What is the primary benefit of the production process?
A. Increased efficiency
B. Reduced labor costs
Correct C. Improved product quality
D. Enhanced customer satisfaction

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A company has a production process that involves the following steps: planning, production, and distribution. What is the primary goal of the distribution step?
Correct A. To deliver the product to the customer
B. To store the product in a warehouse
C. To transport the product to the market
D. To sell the product to the customer

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A company has a production process that involves the following steps: planning, production, and distribution. What is the primary benefit of the production process?
A. Increased efficiency
B. Reduced labor costs
Correct C. Improved product quality
D. Enhanced customer satisfaction

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
The Consumer Protection Act of 1999 in Nigeria provides for the protection of consumers against unfair trade practices. Which of the following is a key provision of the Act?
A. The Act provides for the establishment of a Consumer Protection Council.
Correct B. The Act provides for the protection of consumers against unfair trade practices.
C. The Act provides for the establishment of a Consumer Protection Agency.
D. The Act provides for the protection of consumers against false advertising.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support