POST UTME ELIZADE UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a sole trade business, what is the primary advantage of using a sole trader structure?
A. Limited liability
B. Easy to set up
C. Flexibility in decision-making
D. No tax benefits
Question 2
A consumer protection agency has been established to protect consumers from unfair business practices. The agency has the power to investigate complaints and take legal action against businesses that engage in unfair practices. This is an example of
A. Regulatory Body
B. Consumer Protection Agency
C. Competition Authority
D. Trade Association
Question 3
A consumer purchases a product with a recommended retail price of ₦5,000. If the consumer pays a discount of 10% and an additional 5% for a warranty, what is the total amount paid by the consumer?
A. ₦4,250
B. ₦4,375
C. ₦4,500
D. ₦4,625
Question 4
In a perfectly competitive market, the law of diminishing marginal utility implies that the marginal cost of production will always be greater than the marginal revenue. Which of the following is a correct statement regarding the relationship between marginal cost and marginal revenue in a perfectly competitive market?
A. Marginal cost is always greater than marginal revenue.
B. Marginal cost is always less than marginal revenue.
C. Marginal cost is equal to marginal revenue.
D. Marginal cost is less than or equal to marginal revenue.
Question 5
A company has a warehouse with a capacity of 10,000 units. If the company receives a shipment of 5,000 units, what is the new capacity of the warehouse?
A. 5,000 units
B. 10,000 units
C. 15,000 units
D. 20,000 units
Question 6
A company is considering two different modes of transportation for its goods: road and rail. The cost of transporting goods by road is ₦150 per kilometer, while the cost of transporting goods by rail is ₦120 per kilometer. If the company needs to transport goods for 500 kilometers, what is the total cost of transportation by road?
A. ₦75,000
B. ₦75,000
C. ₦75,000
D. ₦75,000
Question 7
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the effect of an increase in the price of a complementary good on the supply curve of the market?
A. The supply curve shifts to the left.
B. The supply curve shifts to the right.
C. The supply curve remains unchanged.
D. The supply curve becomes vertical.
Question 8
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a characteristic of a sole trader's business?
A. The business is owned by one person.
B. The business is owned by two or more people.
C. The business is owned by the government.
D. The business is owned by a group of investors.
Question 9
A company is considering investing in a new business venture. Which of the following is a key factor in this decision?
A. Financial return on investment
B. Market demand and competition
C. Risk management and mitigation
D. Operational efficiency and scalability
Question 10
A company is considering two different investment projects. Project A has a 10% chance of generating a return of 100,000 and an 80% chance of generating a return of 50,000. Project B has a 20% chance of generating a return of 150,000 and a 70% chance of generating a return of 20,000. Which project has a higher expected return?
A. 42000
B. 34000
C. 50000
D. 60000
Question 11
A company is considering exporting its products to a foreign market. Which of the following is a major advantage of exporting?
A. Increased market share
B. Reduced competition
C. Access to new markets and customers
D. Lower production costs
Question 12
In a perfectly competitive market, the supply curve is typically upward-sloping because of the law of increasing
A. diminishing returns
B. increasing costs
C. decreasing marginal revenue
D. constant returns to scale
Question 13
In a perfectly competitive market, the law of diminishing marginal utility implies that the demand curve for a firm's product is likely to be
A. Inelastic
B. Unit Elastic
C. Elastic
D. Perfectly Elastic
Question 14
A firm's profit function is given by π(x) = R(x) - C(x). If the revenue function is R(x) = 100x - 2x^2 and the cost function is C(x) = 50 + 10x + 2x^2, what is the profit function?
A. π(x) = 50 - 4x
B. π(x) = 50 + 4x
C. π(x) = 50 - 2x
D. π(x) = 50 + 2x
Question 15
A firm's revenue function is given by R(x) = 100x - 2x^2, where x is the number of units sold. If the firm wants to maximize its revenue, how many units should it sell?
A. 10
B. 20
C. 25
D. 30

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