POST UTME REDEEMERS UNIVERSITY 2019 Commerce | Objective

Are you preparing for POST UTME REDEEMERS UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
A firm specializes in producing a single product, which is a type of consumer good. The production process involves a series of complex steps, including material selection, processing, and assembly. What type of production is this firm engaging in?
A. Mass Production
B. Batch Production
Correct C. Job Production
D. Semi-Production

Correct Answer: C

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Question 2
A company is considering the purchase of a new machine that will increase production efficiency by 20%. However, the machine costs ₦1,500,000 and will require an additional ₦300,000 per year for maintenance. What is the minimum annual sales required to justify the purchase of the machine?
A. ₦1,800,000
Correct B. ₦2,100,000
C. ₦2,500,000
D. ₦3,000,000

Correct Answer: B

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Question 3
A consumer purchases a product from a retailer, but upon using it, discovers that it is defective. The consumer seeks compensation from the retailer, but the retailer refuses, citing that the product was sold as-is. What type of law is being applied in this scenario?
A. Sales Law
Correct B. Consumer Protection Law
C. Contract Law
D. Tort Law

Correct Answer: B

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Question 4
A company exports goods to a foreign country, but the goods are seized by customs officials due to non-compliance with import regulations. What type of trade is this company engaging in?
A. Import Trade
B. Export Trade
C. Domestic Trade
Correct D. International Trade

Correct Answer: D

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Question 5
A firm uses a combination of transportation modes to move goods from the factory to the customer. The firm uses trucks for the first leg of the journey, trains for the second leg, and ships for the third leg. What type of transportation is this firm using?
Correct A. Multimodal Transportation
B. Single-Mode Transportation
C. Intermodal Transportation
D. Inland Waterway Transportation

Correct Answer: A

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Question 6
In a perfectly competitive market, the law of diminishing marginal utility is most relevant to the production of which of the following goods?
A. Giffen goods
B. Normal goods
Correct C. Inferior goods
D. Veblen goods

Correct Answer: C

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Question 7
A firm's cost function is given by C(x) = 2x^2 + 5x + 10. What is the marginal cost function?
Correct A. 4x + 5
B. 2x + 3
C. x^2 + 2x
D. 3x + 2

Correct Answer: A

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Question 8
A company has a budget constraint of 100,000 naira. If the price of a product is 200 naira, how many units can the company buy?
A. 250 units
Correct B. 500 units
C. 750 units
D. 1000 units

Correct Answer: B

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Question 9
A firm's revenue function is given by R(x) = 3x^2 - 2x + 10. What is the marginal revenue function?
Correct A. 6x - 2
B. 3x + 1
C. 2x - 3
D. x^2 + 1

Correct Answer: A

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Question 10
A company has a production function of Q = 2L^2 + 5L + 10, where Q is the quantity produced and L is the labor input. If the company wants to produce 50 units, how many units of labor should it hire?
A. 5 units
B. 10 units
Correct C. 15 units
D. 20 units

Correct Answer: C

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Question 11
A sole trader's business is considered a separate legal entity from its owner. Which of the following is a consequence of this separation?
A. The sole trader's business is liable for its owner's debts.
Correct B. The sole trader's business is not liable for its owner's debts.
C. The sole trader's business is a partnership.
D. The sole trader's business is a company.

Correct Answer: B

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Question 12
A company's memorandum of association is a document that outlines the company's
A. objects and powers
B. share capital and share structure
C. management structure and board composition
Correct D. all of the above

Correct Answer: D

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Question 13
A consumer protection law that prohibits unfair contract terms is the
Correct A. Unfair Contract Terms Act
B. Consumer Rights Act
C. Supply of Goods and Services Act
D. Sale of Goods Act

Correct Answer: A

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Question 14
A marketing strategy that focuses on building strong relationships with customers is
Correct A. Relationship marketing
B. Transaction marketing
C. Interactive marketing
D. Direct marketing

Correct Answer: A

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Question 15
A foreign trade agreement that aims to reduce tariffs and other trade barriers is
Correct A. Free Trade Agreement
B. Trade Agreement
C. Tariff Agreement
D. Trade Barrier Agreement

Correct Answer: A

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Question 16
A company's marketing strategy involves a mix of advertising and public relations. Which of the following is a key benefit of using public relations in marketing?
A. Increased brand awareness
B. Improved customer loyalty
Correct C. Enhanced corporate image
D. Increased sales revenue

Correct Answer: C

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Question 17
A sole trader's business is affected by the following factors: market demand, competition, and government regulations. Which of the following is a key characteristic of a sole trader's business?
A. Limited liability
Correct B. Unlimited liability
C. Partnership
D. Company

Correct Answer: B

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Question 18
A company's financial statements include the following: balance sheet, income statement, and cash flow statement. Which of the following is a key purpose of the balance sheet?
A. To show the company's profitability
B. To show the company's liquidity
Correct C. To show the company's financial position
D. To show the company's cash flows

Correct Answer: C

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Question 19
A company's marketing strategy involves a mix of advertising and public relations. Which of the following is a key benefit of using advertising in marketing?
A. Increased brand awareness
B. Improved customer loyalty
C. Enhanced corporate image
Correct D. Increased sales revenue

Correct Answer: D

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Question 20
A sole trader's business is affected by the following factors: market demand, competition, and government regulations. Which of the following is a key characteristic of a sole trader's business?
A. Limited liability
Correct B. Unlimited liability
C. Partnership
D. Company

Correct Answer: B

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Question 21
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If the company receives an order for 5,000 units, what is the probability that the warehouse will be full after fulfilling the order?
A. 0.3
Correct B. 0.5
C. 0.7
D. 0.9

Correct Answer: B

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Question 22
A firm imports goods from a foreign country and sells them in Nigeria. The firm's profit is calculated as the difference between the selling price and the cost price. If the selling price is ₦1,500 and the cost price is ₦1,200, what is the firm's profit?
Correct A. ₦300
B. ₦400
C. ₦500
D. ₦600

Correct Answer: A

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Question 23
A bank offers a 5-year fixed deposit account with an interest rate of 12% per annum compounded annually. If a customer deposits ₦10,000 at the beginning of the first year, what is the amount in the account at the end of the fifth year?
Correct A. ₦16,386.16
B. ₦16,386.19
C. ₦16,386.21
D. ₦16,386.23

Correct Answer: A

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Question 24
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If the company receives an order for 5,000 units, what is the probability that the warehouse will be full after fulfilling the order?
A. 0.3
Correct B. 0.5
C. 0.7
D. 0.9

Correct Answer: B

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Question 25
A firm imports goods from a foreign country and sells them in Nigeria. The firm's profit is calculated as the difference between the selling price and the cost price. If the selling price is ₦1,500 and the cost price is ₦1,200, what is the firm's profit?
Correct A. ₦300
B. ₦400
C. ₦500
D. ₦600

Correct Answer: A

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