POST UTME RHEMA UNIVERSITY 2025 Commerce | Objective

Are you preparing for POST UTME RHEMA UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2025 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
In a sole proprietorship, the owner's personal assets are
A. liable for business debts
B. exempt from business taxes
C. entitled to business profits
Correct D. responsible for business liabilities

Correct Answer: D

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Question 2
A company's Memorandum of Association is a document that outlines the
Correct A. objects of the company
B. management structure of the company
C. share capital of the company
D. directors of the company

Correct Answer: A

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Question 3
The concept of production specialization refers to the
Correct A. division of labor among workers
B. division of tasks among departments
C. division of tasks among countries
D. division of tasks among industries

Correct Answer: A

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Question 4
A company's marketing mix consists of the
Correct A. 4 Ps: product, price, promotion, and place
B. 3 Ps: product, price, and promotion
C. 2 Ps: product and price
D. 1 P: product

Correct Answer: A

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Question 5
A sole trader's business is not required to
Correct A. register with the Corporate Affairs Commission
B. file annual returns with the Corporate Affairs Commission
C. submit audited accounts to the Corporate Affairs Commission
D. pay taxes on business profits

Correct Answer: A

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Question 6
A firm specializes in producing only one product. This specialization is an example of which of the following production concepts?
A. Economies of scale
Correct B. Division of labor
C. Product differentiation
D. Vertical integration

Correct Answer: B

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Question 7
A bank's primary function is to act as a _______ between depositors and borrowers.
A. broker
B. agent
Correct C. intermediary
D. custodian

Correct Answer: C

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Question 8
A firm's production process can be described as _______ if it produces a single product using a single production process.
Correct A. specialization
B. economies of scale
C. product differentiation
D. vertical integration

Correct Answer: A

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Question 9
The _______ of a firm refers to the process of combining various inputs to produce a final product.
Correct A. production function
B. cost function
C. demand function
D. supply function

Correct Answer: A

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Question 10
A firm's _______ refers to the process of transporting goods from one place to another.
A. production
Correct B. distribution
C. marketing
D. finance

Correct Answer: B

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Question 11
A company's insurance policy has a deductible of ₦50,000. If the company incurs a loss of ₦200,000, what is the amount the insurance company will pay?
A. ₦150,000
Correct B. ₦100,000
C. ₦50,000
D. ₦0

Correct Answer: B

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Question 12
A firm imports goods worth ₦1,500,000 from a foreign country. If the exchange rate is 1 USD = ₦500, how much is the import duty?
Correct A. ₦75,000
B. ₦50,000
C. ₦25,000
D. ₦0

Correct Answer: A

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Question 13
A consumer protection agency has the power to investigate and prosecute companies that engage in unfair business practices. Which of the following is an example of an unfair business practice?
A. False advertising
B. Price-fixing
C. Bribery
Correct D. All of the above

Correct Answer: D

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Question 14
A bank's reserve requirement is 10%. If the bank has a deposit of ₦1,000,000, how much must it keep in reserve?
Correct A. ₦100,000
B. ₦50,000
C. ₦0
D. ₦500,000

Correct Answer: A

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Question 15
A company's financial statement shows a net income of ₦500,000. If the company's total assets are ₦2,000,000 and its total liabilities are ₦1,000,000, what is the company's return on equity?
A. 25%
Correct B. 50%
C. 75%
D. 100%

Correct Answer: B

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Question 16
A consumer protection agency has the power to investigate and prosecute companies that engage in unfair business practices. Which of the following is an example of an unfair business practice?
A. False advertising
B. Price-fixing
C. Bribery
Correct D. All of the above

Correct Answer: D

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Question 17
A bank's reserve requirement is 10%. If the bank has a deposit of ₦1,000,000, how much must it keep in reserve?
Correct A. ₦100,000
B. ₦50,000
C. ₦0
D. ₦500,000

Correct Answer: A

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Question 18
A company's financial statement shows a net income of ₦500,000. If the company's total assets are ₦2,000,000 and its total liabilities are ₦1,000,000, what is the company's return on equity?
A. 25%
Correct B. 50%
C. 75%
D. 100%

Correct Answer: B

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Question 19
A consumer protection agency has the power to investigate and prosecute companies that engage in unfair business practices. Which of the following is an example of an unfair business practice?
A. False advertising
B. Price-fixing
C. Bribery
Correct D. All of the above

Correct Answer: D

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Question 20
A bank's reserve requirement is 10%. If the bank has a deposit of ₦1,000,000, how much must it keep in reserve?
A. ₦100,000
B. ₦50,000
C. ₦0
D. ₦500,000

Correct Answer: VIEW ANSWER

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Question 21
A firm specializes in producing only one product. This specialization leads to economies of scale in production. However, it also means that the firm is vulnerable to fluctuations in demand for that product. What is the name of the economic concept that describes this vulnerability?
A. Risk
B. Uncertainty
C. Diversification
Correct D. Concentration

Correct Answer: D

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Question 22
A bank's primary function is to act as a financial intermediary between savers and borrowers. What is the name of the process by which a bank creates new money?
Correct A. Fractional Reserve Banking
B. Open Market Operations
C. Monetary Policy
D. Fiscal Policy

Correct Answer: A

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Question 23
A firm's warehouse is used to store finished goods before they are shipped to customers. What is the name of the inventory management technique that involves counting the number of items in the warehouse at regular intervals?
A. First-In-First-Out (FIFO)
B. Last-In-First-Out (LIFO)
C. Inventory Valuation
Correct D. Cycle Counting

Correct Answer: D

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Question 24
A firm's marketing strategy involves creating a brand identity that differentiates it from its competitors. What is the name of the marketing concept that emphasizes the importance of creating a unique selling proposition?
A. Product Differentiation
B. Segmentation
C. Target Marketing
Correct D. Positioning

Correct Answer: D

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Question 25
A firm's transportation costs are a significant expense in its supply chain. What is the name of the transportation mode that involves the use of ships to transport goods?
A. Rail
B. Road
C. Air
Correct D. Marine

Correct Answer: D

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