POST UTME CRAWFORD UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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
B. ₦800
C. ₦1000
D. ₦1200
Question 2
A company has a production process that involves the following steps: planning, production, and distribution. What is the primary goal of the planning step?
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
Question 3
A firm is considering two different transportation modes to move its products from a warehouse to a distribution center. Mode A has a cost of ₦100 per unit and a transportation time of 2 days, while Mode B has a cost of ₦80 per unit and a transportation time of 3 days. If the firm needs to transport 10,000 units, what is the total cost of transportation using Mode A?
A. ₦800,000
B. ₦1,000,000
C. ₦1,200,000
D. ₦1,500,000
Question 4
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
B. To ensure the quality of the product
C. To reduce the production costs
D. To increase the production speed
Question 5
A bank offers a 5% interest rate on a savings account. If a customer deposits ₦10,000, how much interest will the customer earn in one year?
A. ₦500
B. ₦500.50
C. ₦500.50
D. ₦500.50
Question 6
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
B. ₦2,000,000
C. ₦3,000,000
D. ₦4,000,000
Question 7
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
D. Differentiation
Question 8
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.
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.
Question 9
A firm is considering expanding its operations to a new country. The firm has identified several potential locations, but is concerned about the potential risks associated with operating in a new market. Which of the following is the most appropriate way for the firm to mitigate these risks?
A. Conduct a thorough market analysis to identify potential opportunities and risks
B. Establish a local subsidiary to manage the firm's operations in the new market
C. Partner with a local firm to gain access to the market
D. Limit the scope of the firm's operations in the new market to a specific product or service
Question 10
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
C. Improved product quality
D. Enhanced customer satisfaction
Question 11
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
B. ₦5,000
C. ₦7,000
D. ₦10,000
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 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.
D. The sole trader's business is not required to file annual returns.
Question 13
A company has a production process that involves the following steps: planning, production, and distribution. What is the primary goal of the planning step?
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
Question 14
The following diagram shows a production process for a company. What is the primary benefit of this process?
A. Increased efficiency
B. Reduced labor costs
C. Improved product quality
D. Enhanced customer satisfaction
Question 15
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?
A. ₦500,000
B. ₦500,000
C. ₦500,000
D. ₦500,000

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