POST UTME EKSU 2019 Commerce | Objective

Are you preparing for POST UTME EKSU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
A company's sole trader has decided to expand its business by forming a partnership with another individual. What type of business unit will the new entity be?
A. Sole Trader
Correct B. Partnership
C. Limited Liability Partnership
D. Limited Company

Correct Answer: B

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Question 2
A life insurance policy has a premium of ₦150,000 per annum. The policy pays a benefit of ₦5 million if the policyholder dies within the first 5 years of the policy. What is the probability that the policyholder will die within the first 5 years of the policy?
A. 0.01
Correct B. 0.05
C. 0.1
D. 0.2

Correct Answer: B

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Question 3
A company's marketing strategy involves creating a brand identity that is consistent across all its products. What type of marketing strategy is this?
A. Segmentation
B. Target Marketing
C. Positioning
Correct D. Branding

Correct Answer: D

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Question 4
A bank's interest rate on a savings account is 5% per annum. If a customer deposits ₦100,000 into the account, how much interest will the customer earn in one year?
A. ₦5,000
Correct B. ₦5,500
C. ₦6,000
D. ₦6,500

Correct Answer: B

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Question 5
A company's financial statement shows a net profit of ₦1.5 million. If the company's tax rate is 25%, what is the amount of tax the company will pay?
Correct A. ₦375,000
B. ₦375,500
C. ₦376,000
D. ₦376,500

Correct Answer: A

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Question 6
A company is considering two different insurance policies to cover its business operations. Policy A has a premium of ₦1,500 per year and a deductible of ₦5,000. Policy B has a premium of ₦2,000 per year and a deductible of ₦2,000. If the company expects to incur an average annual loss of ₦10,000, which policy should it choose?
Correct A. Policy A
B. Policy B
C. Policy A and B
D. Neither Policy A nor B

Correct Answer: A

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Question 7
A consumer protection agency has received a complaint from a customer who purchased a product online. The customer alleges that the product was not as described and was of poor quality. The agency has obtained evidence that the seller had made false claims about the product. What should the agency do?
A. Issue a warning to the seller
Correct B. Order the seller to refund the customer's money
C. Ban the seller from selling online
D. Do nothing

Correct Answer: B

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Question 8
A company is considering expanding its production capacity to meet increasing demand. The company has two options: Option A, which involves investing in new machinery and hiring additional staff, or Option B, which involves outsourcing production to a third-party supplier. What should the company do?
Correct A. Invest in new machinery and hire additional staff
B. Outsource production to a third-party supplier
C. Do both
D. Do neither

Correct Answer: A

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Question 9
A company is launching a new product and wants to create a marketing campaign to promote it. The company has a budget of ₦500,000 and wants to reach a target audience of 10,000 people. What should the company do?
A. Use social media advertising
B. Use print media advertising
Correct C. Use a combination of social media and print media advertising
D. Use a combination of social media and event marketing

Correct Answer: C

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Question 10
A company is considering exporting its products to a foreign market. The company has identified a potential customer in a foreign country and wants to negotiate a trade agreement. What should the company do?
A. Negotiate a trade agreement directly with the customer
B. Use a trade intermediary to negotiate the agreement
Correct C. Use a combination of direct negotiation and trade intermediary
D. Do not negotiate a trade agreement

Correct Answer: C

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Question 11
A sole trader's business is considered a separate legal entity from its owner. What is the implication of this separation?
A. The sole trader's personal assets are protected from business liabilities.
Correct B. The sole trader's business is subject to unlimited personal liability.
C. The sole trader's business is exempt from taxation.
D. The sole trader's business is not required to file annual accounts.

Correct Answer: B

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Question 12
A company's Memorandum of Association (MOA) is a document that outlines the company's
A. objectives and goals
B. share capital and ownership structure
C. management and organizational structure
Correct D. all of the above

Correct Answer: D

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Question 13
A bank's primary function is to act as a
A. central clearinghouse for financial transactions
B. lender of last resort
C. store of value for wealth
Correct D. all of the above

Correct Answer: D

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Question 14
A country's balance of payments (BOP) is a statistical statement that summarizes its
A. merchandise trade
B. services trade
C. capital and financial transactions
Correct D. all of the above

Correct Answer: D

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Question 15
A marketing mix is a set of variables that a firm uses to
A. differentiate its products from those of competitors
B. reduce its costs and increase efficiency
C. increase its market share and revenue
Correct D. all of the above

Correct Answer: D

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Question 16
A firm specializes in producing only one product. This specialization allows the firm to achieve economies of scale in production. However, it also means that the firm is vulnerable to fluctuations in demand for that product. What is the name of this phenomenon?
Correct A. Risk
B. Diversification
C. Economies of scale
D. Monopolistic competition

Correct Answer: A

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Question 17
A bank's cash reserve ratio is 20%. If the bank has a total deposit of ₦10,000,000, how much cash must it keep in reserve?
Correct A. ₦2,000,000
B. ₦1,500,000
C. ₦2,500,000
D. ₦1,000,000

Correct Answer: A

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Question 18
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the minimum cost of production?
Correct A. ₦2,000
B. ₦1,500
C. ₦3,000
D. ₦1,000

Correct Answer: A

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Question 19
A firm has a warehouse with a capacity of 10,000 units. The firm receives a shipment of 5,000 units. What is the new level of inventory?
A. 5,000
Correct B. 10,000
C. 15,000
D. 20,000

Correct Answer: B

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Question 20
A firm has a policy of paying a 10% dividend on its shares. If the firm has 1,000 shares outstanding, and the par value of each share is ₦100, what is the total dividend payment?
Correct A. ₦10,000
B. ₦9,000
C. ₦11,000
D. ₦12,000

Correct Answer: A

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Question 21
The concept of specialization in commerce refers to the process by which a firm focuses on producing a specific product or service, thereby increasing its efficiency and reducing costs. Which of the following is a benefit of specialization in commerce?
A. Increased competition
B. Improved product quality
Correct C. Reduced production costs
D. Increased market share

Correct Answer: C

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Question 22
A firm's production function is given by the equation Q = 2L^0.5 + 3K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm increases its labor input from 4 to 9, what is the percentage change in the quantity produced?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 23
A firm is considering exporting its product to a foreign market. Which of the following is a benefit of exporting?
A. Increased competition
B. Improved product quality
Correct C. Access to new markets
D. Reduced production costs

Correct Answer: C

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Question 24
A bank's balance sheet is given by the equation Assets = Liabilities + Equity. If the bank's assets increase by 10% and its liabilities increase by 5%, what is the percentage change in its equity?
A. -5%
Correct B. -10%
C. -15%
D. -20%

Correct Answer: B

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Question 25
A firm's marketing strategy involves creating a new product to appeal to a specific segment of the market. Which of the following is a benefit of product differentiation?
A. Increased competition
B. Improved product quality
C. Reduced production costs
Correct D. Increased market share

Correct Answer: D

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