POST UTME EKSU 2025 Commerce | Objective

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Question 1
A company's marketing strategy involves creating a new product line to target a specific demographic. The product line is expected to generate a revenue of ₦500 million in the first year. However, the company's financial analysts have estimated that the production costs will be ₦300 million. What is the expected profit for the company in the first year?
Correct A. ₦200 million
B. ₦300 million
C. ₦400 million
D. ₦500 million

Correct Answer: A

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Question 2
A sole trader has a business that generates an annual revenue of ₦2.5 million. The sole trader's expenses include ₦1.2 million for rent, ₦500,000 for utilities, and ₦300,000 for equipment. What is the sole trader's net profit?
Correct A. ₦1.1 million
B. ₦1.2 million
C. ₦1.3 million
D. ₦1.4 million

Correct Answer: A

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Question 3
A company has a marketing budget of ₦10 million. The company wants to allocate the budget across three different marketing channels: social media, email marketing, and print advertising. If the company wants to allocate 40% of the budget to social media, 30% to email marketing, and 30% to print advertising, how much will each channel receive?
Correct A. ₦4 million for social media, ₦3 million for email marketing, ₦3 million for print advertising
B. ₦3.5 million for social media, ₦3 million for email marketing, ₦3.5 million for print advertising
C. ₦4 million for social media, ₦3 million for email marketing, ₦3 million for print advertising
D. ₦3 million for social media, ₦3.5 million for email marketing, ₦3.5 million for print advertising

Correct Answer: A

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Question 4
A company has a fleet of 10 vehicles, including 5 cars and 5 trucks. The company wants to insure the vehicles against theft and damage. The insurance premium for each car is ₦500,000, and the insurance premium for each truck is ₦750,000. What is the total insurance premium for the company?
A. ₦7.5 million
Correct B. ₦8 million
C. ₦8.5 million
D. ₦9 million

Correct Answer: B

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Question 5
A company has a marketing strategy that involves creating a new product line to target a specific demographic. The product line is expected to generate a revenue of ₦1 billion in the first year. However, the company's financial analysts have estimated that the production costs will be ₦600 million. What is the expected profit for the company in the first year?
Correct A. ₦400 million
B. ₦500 million
C. ₦600 million
D. ₦700 million

Correct Answer: A

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Question 6
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is the quantity produced, L is the labor input, and H is the capital input. If the firm wants to produce 16 units of output, and it has 4 units of labor available, how many units of capital should it hire?
A. 2
B. 4
Correct C. 8
D. 16

Correct Answer: C

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Question 7
A company is considering two different marketing strategies. Strategy A involves a one-time investment of ₦10,000 and generates a profit of ₦5,000 per month for 6 months. Strategy B involves a one-time investment of ₦20,000 and generates a profit of ₦3,000 per month for 12 months. Which strategy should the company choose?
Correct A. Strategy A
B. Strategy B
C. Both strategies are equally profitable
D. Neither strategy is profitable

Correct Answer: A

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Question 8
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm wants to maximize its revenue, what price should it charge?
A. ₦20
Correct B. ₦30
C. ₦40
D. ₦50

Correct Answer: B

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Question 9
A company is considering two different production processes. Process A involves a one-time investment of ₦50,000 and generates a profit of ₦2,000 per unit for 10,000 units. Process B involves a one-time investment of ₦100,000 and generates a profit of ₦3,000 per unit for 20,000 units. Which process should the company choose?
A. Process A
Correct B. Process B
C. Both processes are equally profitable
D. Neither process is profitable

Correct Answer: B

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Question 10
A firm's cost function is given by C = 2L + 3H, where C is the total cost, L is the labor input, and H is the capital input. If the firm wants to minimize its cost, and it has 2 units of labor available, how many units of capital should it hire?
A. 1
Correct B. 2
C. 3
D. 4

Correct Answer: B

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Question 11
A company is considering a new marketing strategy to increase sales. The strategy involves offering a 10% discount to customers who purchase a product online. However, the company also wants to ensure that the product is delivered to the customer within a reasonable time frame. Which of the following is a key consideration for the company?
A. The cost of delivering the product to the customer
Correct B. The time it takes to deliver the product to the customer
C. The impact of the discount on the company's profit margins
D. The potential increase in sales due to the discount

Correct Answer: B

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Question 12
A consumer purchases a product online and pays for it using a credit card. However, the product is defective and the consumer wants to return it. Which of the following is the consumer's right under the Consumer Protection Act?
Correct A. To return the product and receive a full refund
B. To return the product and receive a partial refund
C. To return the product and receive a replacement product
D. To return the product and receive a store credit

Correct Answer: A

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Question 13
A company is considering setting up a sole trade business. Which of the following is a key advantage of a sole trade business?
A. It is easier to set up and register
B. It is less expensive to operate
Correct C. It provides greater flexibility in decision-making
D. It is easier to raise capital

Correct Answer: C

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Question 14
A company is considering using a particular mode of transport to deliver its products. Which of the following is a key consideration for the company?
A. The cost of the transport mode
B. The time it takes to deliver the product
Correct C. The reliability of the transport mode
D. The environmental impact of the transport mode

Correct Answer: C

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Question 15
A company purchases an insurance policy to protect against loss due to fire. Which of the following is a key feature of the policy?
A. It provides coverage for loss due to theft
Correct B. It provides coverage for loss due to fire
C. It provides coverage for loss due to natural disasters
D. It provides coverage for loss due to accidents

Correct Answer: B

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Question 16
What is the primary function of the marketing mix in a business?
A. To create a unique selling proposition
Correct B. To differentiate a product from competitors
C. To increase market share
D. To reduce production costs

Correct Answer: B

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Question 17
A company is considering expanding its operations to a new market. What is the primary factor to consider in this decision?
Correct A. Market size and growth rate
B. Competitor analysis
C. Production costs
D. Government regulations

Correct Answer: A

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Question 18
A sole trader is considering hiring employees to help with the business. What is the primary advantage of hiring employees?
Correct A. Increased productivity
B. Reduced labor costs
C. Improved work-life balance
D. Enhanced company reputation

Correct Answer: A

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Question 19
A company is considering launching a new product. What is the primary factor to consider in this decision?
Correct A. Market demand and competition
B. Production costs and feasibility
C. Marketing and advertising strategies
D. Financial resources and budget

Correct Answer: A

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Question 20
A business is considering outsourcing certain functions to a third-party provider. What is the primary advantage of outsourcing?
Correct A. Reduced labor costs
B. Increased productivity
C. Improved work-life balance
D. Enhanced company reputation

Correct Answer: A

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Question 21
In a just-in-time inventory system, what is the primary goal of the warehouse manager?
A. To minimize inventory costs
B. To maximize storage capacity
Correct C. To reduce lead times
D. To increase order quantities

Correct Answer: C

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Question 22
A company uses a transportation mode that involves the movement of goods by road. What is the primary advantage of this mode?
A. Flexibility in route planning
B. Reduced transit times
Correct C. Lower transportation costs
D. Increased security

Correct Answer: C

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Question 23
A bank offers a loan with an interest rate of 12% per annum compounded annually. If the principal amount is ₦10,000, what is the amount after 2 years?
A. ₦12,240
Correct B. ₦12,480
C. ₦12,720
D. ₦13,440

Correct Answer: B

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Question 24
A company specializes in the production of textiles. What is the primary benefit of specialization in this industry?
Correct A. Increased efficiency
B. Reduced production costs
C. Improved product quality
D. Enhanced market competition

Correct Answer: A

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Question 25
A consumer purchases a product with a price of ₦5,000 and a 10% discount. What is the amount paid by the consumer?
Correct A. ₦4,500
B. ₦4,750
C. ₦5,000
D. ₦5,250

Correct Answer: A

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