POST UTME EKSU 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm has a production function given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K 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 are required?
A. 4
B. 8
C. 16
D. 32
Question 2
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?
A. ₦200 million
B. ₦300 million
C. ₦400 million
D. ₦500 million
Question 3
What is the primary function of the marketing mix in a business?
A. To create a unique selling proposition
B. To differentiate a product from competitors
C. To increase market share
D. To reduce production costs
Question 4
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
B. ₦30
C. ₦40
D. ₦50
Question 5
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
C. 8
D. 16
Question 6
A sole trader's business is considered a separate legal entity from its owner. True or False?
A. True
B. False
C. Depends on the country's laws
D. Not applicable in Nigeria
Question 7
A company specializes in the production of textiles. What is the primary benefit of specialization in this industry?
A. Increased efficiency
B. Reduced production costs
C. Improved product quality
D. Enhanced market competition
Question 8
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity of the good supplied by firms will
A. increase
B. decrease
C. remain constant
D. move in the opposite direction
Question 9
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?
A. Strategy A
B. Strategy B
C. Both strategies are equally profitable
D. Neither strategy is profitable
Question 10
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
B. ₦8 million
C. ₦8.5 million
D. ₦9 million
Question 11
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
C. To reduce lead times
D. To increase order quantities
Question 12
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
B. ₦12,480
C. ₦12,720
D. ₦13,440
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
C. It provides greater flexibility in decision-making
D. It is easier to raise capital
Question 14
A business can specialize in a particular product or service by focusing on a specific market segment. True or False?
A. True
B. False
C. Depends on the company's size
D. Not applicable in Nigeria
Question 15
A consumer purchases a product with a price of ₦5,000 and a 10% discount. What is the amount paid by the consumer?
A. ₦4,500
B. ₦4,750
C. ₦5,000
D. ₦5,250

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