POST UTME ELIZADE UNIVERSITY 2025 Commerce | Objective

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Question 1
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
Correct C. Elastic
D. Perfectly Elastic

Correct Answer: C

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Question 2
A company's financial statements are audited by an independent auditor to ensure that they are presented fairly and in accordance with the relevant accounting standards. This process is known as
A. Financial Statement Analysis
B. Ratio Analysis
Correct C. Auditing
D. Accounting Standards

Correct Answer: C

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Question 3
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
Correct B. Consumer Protection Agency
C. Competition Authority
D. Trade Association

Correct Answer: B

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Question 4
A sole trader is a business owned and operated by one individual. The owner has complete control over the business and is personally responsible for its debts. This type of business is also known as
A. Partnership
B. Limited Liability Company
Correct C. Sole Trader
D. Cooperative

Correct Answer: C

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Question 5
A bank's primary function is to act as a financial intermediary between savers and borrowers. It accepts deposits from savers and lends them to borrowers. This is an example of
Correct A. Commercial Bank
B. Central Bank
C. Investment Bank
D. Development Bank

Correct Answer: A

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Question 6
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
Correct C. Access to new markets and customers
D. Lower production costs

Correct Answer: C

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Question 7
A firm's marketing strategy involves creating a new product line. Which of the following is a key consideration in this decision?
Correct A. Market research and analysis
B. Financial resources and budget
C. Product life cycle and competition
D. Supply chain management

Correct Answer: A

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Question 8
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
Correct B. Market demand and competition
C. Risk management and mitigation
D. Operational efficiency and scalability

Correct Answer: B

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Question 9
A firm's marketing strategy involves creating a new product line. Which of the following is a key consideration in this decision?
Correct A. Market research and analysis
B. Financial resources and budget
C. Product life cycle and competition
D. Supply chain management

Correct Answer: A

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Question 10
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
Correct C. Access to new markets and customers
D. Lower production costs

Correct Answer: C

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Question 11
In a sole trade business, what is the primary advantage of using a sole trader structure?
A. Limited liability
B. Easy to set up
Correct C. Flexibility in decision-making
D. No tax benefits

Correct Answer: C

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Question 12
A company has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. If the company issues 20,000 shares at a premium of ₦5 per share, what is the total amount received from the issue of shares?
A. ₦200,000
Correct B. ₦250,000
C. ₦300,000
D. ₦350,000

Correct Answer: B

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Question 13
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
Correct D. ₦4,625

Correct Answer: D

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Question 14
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
Correct C. 15,000 units
D. 20,000 units

Correct Answer: C

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Question 15
A business has a policy of paying its employees a bonus of 10% of their salary after 6 months of service. If an employee earns ₦50,000 per month, what is the bonus paid after 6 months?
A. ₦3,000
B. ₦5,000
Correct C. ₦7,500
D. ₦10,000

Correct Answer: C

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Question 16
In a perfectly competitive market, the supply curve is typically upward-sloping because of the law of increasing
Correct A. diminishing returns
B. increasing costs
C. decreasing marginal revenue
D. constant returns to scale

Correct Answer: A

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Question 17
A company's marketing mix is a combination of the 4 Ps, which are
Correct A. Product, Price, Place, Promotion
B. Product, Price, Place, People
C. Product, Price, Place, Process
D. Product, Price, Place, Packaging

Correct Answer: A

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Question 18
A business can be classified as a sole proprietorship, partnership, or corporation. Which of the following is NOT a characteristic of a corporation?
A. Limited liability
B. Transferable ownership
Correct C. No tax benefits
D. Perpetual existence

Correct Answer: C

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Question 19
A consumer's utility function is typically represented by a
A. Linear function
Correct B. Non-linear function
C. Quadratic function
D. Exponential function

Correct Answer: B

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Question 20
A firm's break-even point is the point at which its total revenue equals its total
Correct A. cost
B. revenue
C. profit
D. loss

Correct Answer: A

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Question 21
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.
Correct B. The supply curve shifts to the right.
C. The supply curve remains unchanged.
D. The supply curve becomes vertical.

Correct Answer: B

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Question 22
A firm's revenue function is given by R(x) = 100x - 2x^2. What is the marginal revenue function?
Correct A. R'(x) = 100 - 4x
B. R'(x) = 100 + 4x
C. R'(x) = 100 - 2x
D. R'(x) = 100 + 2x

Correct Answer: A

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Question 23
A firm's cost function is given by C(x) = 50 + 10x + 2x^2. What is the marginal cost function?
Correct A. C'(x) = 10 + 4x
B. C'(x) = 10 - 4x
C. C'(x) = 10 + 2x
D. C'(x) = 10 - 2x

Correct Answer: A

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Question 24
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?
Correct A. π(x) = 50 - 4x
B. π(x) = 50 + 4x
C. π(x) = 50 - 2x
D. π(x) = 50 + 2x

Correct Answer: A

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Question 25
A firm's demand function is given by D(p) = 100 - 2p. What is the inverse demand function?
Correct A. p(x) = 50 - x/2
B. p(x) = 50 + x/2
C. p(x) = 50 - 2x
D. p(x) = 50 + 2x

Correct Answer: A

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