POST UTME IMS U 2020 Commerce | Objective

Are you preparing for POST UTME IMS U exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
A firm's marketing strategy involves the use of a combination of the product, price, place, and promotion variables. Which of the following is NOT a characteristic of a product variable?
A. Product life cycle
B. Product mix
C. Product positioning
Correct D. Product quality

Correct Answer: D

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Question 2
A consumer protection agency has been established to protect consumers from unfair business practices. Which of the following is a key function of this agency?
Correct A. To investigate complaints from consumers
B. To provide information to consumers about their rights
C. To prosecute businesses that engage in unfair practices
D. To regulate the prices of goods and services

Correct Answer: A

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Question 3
A bank's financial statements are audited annually to ensure that they are presented fairly and in accordance with accounting standards. Which of the following is a key benefit of this audit?
A. To identify any material weaknesses in internal control
B. To ensure that the financial statements are presented fairly and in accordance with accounting standards
Correct C. To provide assurance to stakeholders that the financial statements are reliable
D. To identify any opportunities for cost savings

Correct Answer: C

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Question 4
A firm's risk management strategy involves the use of insurance to mitigate potential losses. Which of the following is a key characteristic of insurance?
A. It is a form of investment
Correct B. It is a way to reduce risk
C. It is a way to increase revenue
D. It is a way to reduce costs

Correct Answer: B

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Question 5
A consumer protection agency has been established to protect consumers from unfair business practices. Which of the following is a key power of this agency?
A. To investigate complaints from consumers
Correct B. To prosecute businesses that engage in unfair practices
C. To regulate the prices of goods and services
D. To provide information to consumers about their rights

Correct Answer: B

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Question 6
A company's insurance policy has a deductible of ₦50,000. If the company's annual premium is ₦1,200,000, and it pays ₦800,000 in claims, what is the company's expected loss ratio?
Correct A. 0.67
B. 0.75
C. 0.83
D. 0.90

Correct Answer: A

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Question 7
A warehouse has a storage capacity of 10,000 units. If the warehouse is currently 75% full, and 500 units are added to the warehouse every day, how many days will it take to fill the warehouse to capacity?
A. 10
B. 15
Correct C. 20
D. 25

Correct Answer: C

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Question 8
A company is considering two marketing strategies: Strategy A, which costs ₦1,000,000 and is expected to generate ₦1,500,000 in revenue, and Strategy B, which costs ₦500,000 and is expected to generate ₦750,000 in revenue. Which strategy has a higher return on investment (ROI)?
Correct A. Strategy A
B. Strategy B
C. Both strategies have the same ROI
D. Neither strategy has a positive ROI

Correct Answer: A

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Question 9
A company's transportation costs are ₦500,000 per month. If the company's revenue is ₦2,000,000 per month, and the company uses a transportation mode that has a variable cost of ₦100 per unit and a fixed cost of ₦50,000, what is the company's marginal cost?
A. ₦100
Correct B. ₦150
C. ₦200
D. ₦250

Correct Answer: B

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Question 10
A company's stock is currently priced at ₦50 per share. If the company's earnings per share (EPS) is ₦10, and the company's price-to-earnings (P/E) ratio is 5, what is the company's market capitalization?
A. ₦250,000,000
B. ₦500,000,000
C. ₦750,000,000
Correct D. ₦1,000,000,000

Correct Answer: D

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Question 11
A company's sole trader is considering expanding its operations to a new market. The company has identified two potential locations, A and B, with different market sizes and competition levels. Using the Ansoff Matrix, determine the most appropriate location for the company's expansion.
Correct A. Location A: High market size, low competition
B. Location B: Low market size, high competition
C. Location A: Low market size, high competition
D. Location B: High market size, low competition

Correct Answer: A

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Question 12
A bank is considering introducing a new credit card product. The product will have a 20% annual interest rate and a 2% annual fee. If the customer makes a payment of ₦10,000, how much will they owe after one year?
A. ₦12,000
Correct B. ₦12,200
C. ₦12,400
D. ₦12,600

Correct Answer: B

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Question 13
A company is considering outsourcing its logistics operations to a third-party provider. The company's current logistics costs are ₦1,000,000 per month. The outsourcing provider has quoted a price of ₦900,000 per month. However, the company will also incur a 10% fee on the total cost of goods sold. What is the total cost of logistics for the company after outsourcing?
A. ₦990,000
B. ₦1,000,000
Correct C. ₦1,010,000
D. ₦1,020,000

Correct Answer: C

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Question 14
A company is considering investing in a new marketing campaign. The company's current marketing budget is ₦500,000 per month. The new campaign will cost ₦750,000 per month. However, the company expects to increase sales by 20% as a result of the campaign. What is the return on investment (ROI) for the company?
A. 20%
Correct B. 25%
C. 30%
D. 35%

Correct Answer: B

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Question 15
A company is considering introducing a new product to its existing product line. The company's current product line has a market share of 30%. The new product is expected to increase the company's market share by 10%. What is the company's new market share?
A. 40%
Correct B. 50%
C. 60%
D. 70%

Correct Answer: B

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Question 16
The concept of 'planned obsolescence' is most closely associated with which of the following marketing strategies?
A. Product differentiation
B. Market segmentation
Correct C. Product life cycle management
D. Perishable goods marketing

Correct Answer: C

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Question 17
A firm's production function is given by Q = 2L^0.5K^0.5. 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
Correct B. 4
C. 8
D. 16

Correct Answer: B

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Question 18
A consumer has a utility function given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, and the price of good x is 2, and the price of good y is 3, what is the consumer's optimal bundle?
A. (2, 2)
Correct B. (4, 0)
C. (0, 4)
D. (3, 3)

Correct Answer: B

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Question 19
A firm is considering two different production technologies: one that produces 10 units of output per unit of labor, and another that produces 20 units of output per unit of labor. If the firm has 100 units of labor available, and it wants to produce 200 units of output, which technology should it choose?
A. Technology 1
Correct B. Technology 2
C. Both technologies
D. Neither technology

Correct Answer: B

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Question 20
A consumer has a utility function given by U = x^2 + 2y^2. If the consumer's budget constraint is 2x + 3y = 12, and the price of good x is 2, and the price of good y is 3, what is the consumer's optimal bundle?
A. (2, 2)
B. (4, 0)
C. (0, 4)
Correct D. (3, 3)

Correct Answer: D

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Question 21
A company's sole trader has a business income of ₦1,500,000 and expenses of ₦800,000. What is the profit before tax?
Correct A. ₦700,000
B. ₦600,000
C. ₦800,000
D. ₦900,000

Correct Answer: A

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Question 22
A marketing manager wants to increase sales by 20% within the next quarter. If the current sales are ₦2,000,000, what is the target sales figure?
Correct A. ₦2,400,000
B. ₦2,200,000
C. ₦2,600,000
D. ₦2,800,000

Correct Answer: A

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Question 23
A company's insurance policy has a premium of ₦150,000. If the insurance company offers a 10% discount, what is the new premium?
Correct A. ₦135,000
B. ₦145,000
C. ₦155,000
D. ₦165,000

Correct Answer: A

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Question 24
A sole trader has a business income of ₦1,200,000 and expenses of ₦600,000. What is the profit before tax?
Correct A. ₦600,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000

Correct Answer: A

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Question 25
A company's marketing manager wants to increase sales by 15% within the next quarter. If the current sales are ₦1,500,000, what is the target sales figure?
Correct A. ₦1,725,000
B. ₦1,575,000
C. ₦1,625,000
D. ₦1,725,000

Correct Answer: A

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