POST UTME FUTA 2022 Commerce | Objective

Are you preparing for POST UTME FUTA exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2022 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
The Central Bank of Nigeria (CBN) uses monetary policy to regulate the money supply in the economy. Which of the following instruments is used to reduce the money supply?
A. Open Market Operations (OMO)
Correct B. Reserve Requirements
C. Discount Rate
D. Selective Credit Controls

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A company's marketing strategy involves creating a new product to target a specific segment of the market. Which of the following marketing mix elements is most relevant to this strategy?
Correct A. Product
B. Price
C. Promotion
D. Place

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A firm's financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP). Which of the following financial statements is used to show the firm's financial position at a specific point in time?
Correct A. Balance Sheet
B. Income Statement
C. Cash Flow Statement
D. Statement of Changes in Equity

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company's insurance policy covers losses due to fire, theft, and liability. Which of the following types of insurance is most relevant to this policy?
Correct A. Property Insurance
B. Liability Insurance
C. Casualty Insurance
D. Workers' Compensation Insurance

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A firm's foreign exchange risk arises from fluctuations in the exchange rate between the naira and the US dollar. Which of the following hedging strategies is most effective in managing this risk?
Correct A. Forward Contract
B. Futures Contract
C. Options Contract
D. Swap Contract

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing
A. diminishing marginal opportunity cost
Correct B. increasing marginal opportunity cost
C. diminishing marginal product
D. increasing marginal product

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm wants to produce 16 units of output, how many units of labor are required if K = 4?
Correct A. 4
B. 8
C. 16
D. 32

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A company has a warehouse with a capacity of 1000 units. The warehouse is currently 75% full. If 150 units are added to the warehouse, what is the new percentage of capacity?
A. 62.5
B. 65
Correct C. 67.5
D. 70

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A firm has a probability distribution of the following outcomes: 20% chance of 10 units, 30% chance of 20 units, and 50% chance of 30 units. What is the expected value of the distribution?
A. 20
B. 22
Correct C. 24
D. 26

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A bank has a reserve requirement of 20% and a cash reserve of ₦100,000. If the bank wants to increase its cash reserve by 10%, what is the new cash reserve?
A. ₦110,000
B. ₦120,000
Correct C. ₦130,000
D. ₦140,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
The following diagram illustrates the concept of warehousing and stock control. What is the primary purpose of the inventory management system depicted?
A. To track the movement of goods within the warehouse
Correct B. To monitor the inventory levels and reorder stock as needed
C. To optimize storage space within the warehouse
D. To manage the flow of goods in and out of the warehouse

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A company is considering the introduction of a new product line. The marketing manager has identified three target markets: A, B, and C. Which of the following marketing strategies would be most effective in reaching market A?
Correct A. Direct mail marketing
B. Social media advertising
C. Influencer marketing
D. Trade show participation

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A bank is considering the introduction of a new credit card product. The product will have a 20% annual interest rate and a 2% annual fee. What is the effective annual interest rate on the credit card?
Correct A. 0.24
B. 0.26
C. 0.28
D. 0.30

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A company is considering the purchase of a new piece of equipment. The equipment will cost ₦1,000,000 and will have a useful life of 5 years. What is the annual depreciation expense on the equipment?
A. ₦200,000
Correct B. ₦250,000
C. ₦300,000
D. ₦350,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A sole trader is considering the incorporation of a new business. What are the primary advantages of incorporation?
Correct A. Limited liability, ease of transfer of ownership, and increased credibility
B. Increased tax liability, reduced flexibility, and decreased credibility
C. Reduced liability, increased flexibility, and decreased credibility
D. Increased liability, reduced flexibility, and increased credibility

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A company has two production units, A and B. Unit A produces 60% of the total output, while unit B produces 40%. If the total output is 1000 units, how many units will be produced by unit B?
A. 400
Correct B. 500
C. 600
D. 800

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A sole trader has a business income of ₦1,500,000 and expenses of ₦800,000. What is the net profit?
Correct A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A company has a production cost of ₦5,000,000 and a selling price of ₦7,000,000. What is the profit margin?
A. 25%
Correct B. 30%
C. 35%
D. 40%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A business has a risk management strategy that involves diversification. What is the benefit of diversification?
Correct A. Reduced risk
B. Increased risk
C. No change in risk
D. Unknown

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company has a production capacity of 10,000 units per day. If the demand is 8,000 units per day, what is the level of specialization?
A. 80%
Correct B. 90%
C. 95%
D. 100%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A company is considering two different production methods for its new product. Method A involves a higher initial investment but results in lower production costs per unit. Method B involves a lower initial investment but results in higher production costs per unit. If the company expects to produce 10,000 units in the first year, which method should it choose if it wants to minimize its total production costs?
Correct A. Method A
B. Method B
C. Both methods are equally cost-effective
D. More information is needed to make a decision

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A firm is considering exporting its product to a foreign market. The firm's marketing manager has estimated that the demand for the product in the foreign market is given by the equation 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 for the product?
A. P = 20
Correct B. P = 30
C. P = 40
D. P = 50

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A company has a warehouse with a capacity of 10,000 units. The company receives a shipment of 5,000 units and wants to store them in the warehouse. If the warehouse is already 75% full, what is the maximum number of additional units that the company can store in the warehouse?
Correct A. 1,250 units
B. 2,500 units
C. 3,750 units
D. 5,000 units

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A sole trader is considering expanding its business by hiring additional staff. The sole trader currently earns a profit of ₦100,000 per month and expects to increase its profit by ₦20,000 per month for each additional staff member hired. If the sole trader wants to increase its profit by ₦100,000 per month, how many additional staff members should it hire?
A. 2 staff members
Correct B. 3 staff members
C. 4 staff members
D. 5 staff members

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A company is considering two different insurance policies to protect its business against risks. Policy A has a premium of ₦50,000 per year and provides a maximum payout of ₦200,000 in the event of a loss. Policy B has a premium of ₦30,000 per year and provides a maximum payout of ₦300,000 in the event of a loss. If the company expects to incur a loss of ₦250,000, which policy should it choose?
A. Policy A
Correct B. Policy B
C. Both policies are equally cost-effective
D. More information is needed to make a decision

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support