POST UTME LASU 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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?
A. Unlimited liability
B. Limited liability
C. Separation of ownership and management
D. No distinction between ownership and management
Question 2
A sole trader has a business income of ₦200,000 and business expenses of ₦150,000. What is their business profit?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 3
A company is considering investing in a new project. The project has a required rate of return of 12% and an expected return of 15%. What is the project's sensitivity to changes in the required rate of return?
A. Highly sensitive
B. Moderately sensitive
C. Not very sensitive
D. Not at all sensitive
Question 4
A firm is considering investing in a new project with a net present value (NPV) of ₦1,200,000. The required rate of return is 12%. What is the internal rate of return (IRR) of the project?
A. 10%
B. 12%
C. 15%
D. 18%
Question 5
A company's articles of association may provide for the issue of preference shares. What is the main advantage of preference shares?
A. Higher Dividend Yield
B. Priority in Liquidation
C. Redemption at Par
D. Voting Rights
Question 6
A consumer purchases a product from a retailer, but the product is defective. The consumer sues the retailer for breach of contract. What is the legal doctrine that applies in this situation?
A. Ultrahazardous Activity
B. Strict Liability
C. Implied Warranty of Merchantability
D. Bailment
Question 7
A company is considering two different marketing strategies: Strategy A involves a high level of advertising and a low level of sales promotions, while Strategy B involves a low level of advertising and a high level of sales promotions. Which of the following is a potential advantage of Strategy A?
A. Increased brand awareness
B. Improved customer relationships
C. Higher sales volume
D. Reduced competition
Question 8
A company is considering two different distribution channels: Channel A involves a high level of inventory holding and a low level of transportation costs, while Channel B involves a low level of inventory holding and a high level of transportation costs. Which of the following is a potential advantage of Channel A?
A. Improved customer service
B. Increased sales volume
C. Reduced inventory costs
D. Lower transportation costs
Question 9
A firm is considering the following production costs: fixed costs of ₦100,000, variable costs of ₦50 per unit, and a selling price of ₦75 per unit. What is the break-even point in units?
A. 1,000 units
B. 2,000 units
C. 3,000 units
D. 4,000 units
Question 10
A consumer purchases a product from a retailer for ₦10,000. The retailer offers a 10% discount on the product. What is the amount of discount the consumer receives?
A. ₦1,000
B. ₦1,500
C. ₦2,000
D. ₦2,500
Question 11
A firm is considering exporting its product to a foreign market. What is the primary advantage of exporting over domestic production?
A. Increased market share
B. Reduced production costs
C. Access to new markets and customers
D. Improved product quality
Question 12
A company is considering two different production processes for a new product. Process A has a higher fixed cost but a lower variable cost per unit, while Process B has a lower fixed cost but a higher variable cost per unit. What is the optimal production level for each process, assuming a market demand of 10,000 units?
A. Process A: 5,000 units; Process B: 10,000 units
B. Process A: 10,000 units; Process B: 5,000 units
C. Process A: 8,000 units; Process B: 12,000 units
D. Process A: 12,000 units; Process B: 8,000 units
Question 13
A bank offers a 5% annual interest rate on deposits. If a customer deposits ₦10,000 for 2 years, how much interest will they earn?
A. ₦500
B. ₦1,000
C. ₦1,500
D. ₦2,000
Question 14
A company has a production capacity of 10,000 units per month. If they produce 8,000 units in a month, what is their production efficiency?
A. 80%
B. 85%
C. 90%
D. 95%
Question 15
A company's supply chain is a network of
A. suppliers, manufacturers, and customers
B. suppliers, manufacturers, and distributors
C. manufacturers, distributors, and customers
D. all of the above

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