POST UTME RSU 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering two different production processes for producing a good. Process 1 requires an initial investment of ₦100,000 and has a fixed cost of ₦20,000 per unit produced. Process 2 requires an initial investment of ₦50,000 and has a fixed cost of ₦30,000 per unit produced. If the firm produces 100 units of the good, which process will result in lower total costs?
A. Process 1
B. Process 2
C. Both processes will result in the same total costs
D. Neither process will result in lower total costs
Question 2
A company is considering two different production processes for a new product. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit. Process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the selling price of the product is ₦80 per unit, which process should the company use to maximize its profit?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 3
A firm is considering investing in a new project that has a net present value (NPV) of ₦500,000. If the firm's cost of capital is 10%, what is the internal rate of return (IRR) of the project?
A. 5%
B. 10%
C. 15%
D. 20%
Question 4
A company's financial statements are audited annually by an independent auditor. What is the primary purpose of this audit?
A. To verify the company's financial statements
B. To provide assurance to stakeholders
C. To identify areas for improvement
D. To determine the company's tax liability
Question 5
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will
A. increase
B. decrease
C. remain constant
D. move in the opposite direction
Question 6
The Central Bank of Nigeria (CBN) uses the monetary policy framework 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)
B. Reserve Requirements
C. Discount Rate
D. Selective Credit Controls
Question 7
A company's financial statement shows a net income of ₦1,500,000. If the company's total assets are ₦5,000,000 and its total liabilities are ₦2,500,000, what is the company's return on equity (ROE)?
A. 20%
B. 25%
C. 30%
D. 35%
Question 8
A company has a production function given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the company wants to produce 100 units of output, how many units of labor and capital should it use?
A. L = 100, K = 100
B. L = 50, K = 50
C. L = 25, K = 25
D. L = 10, K = 10
Question 9
A firm specializes in producing only one product, which is a type of electronic component. The production process involves several stages, including design, prototyping, testing, and packaging. If the firm's production process is characterized by a high degree of specialization, what is the likely outcome on its productivity?
A. Increased productivity due to economies of scale
B. Decreased productivity due to lack of diversification
C. No change in productivity due to specialization
D. Increased productivity due to improved quality control
Question 10
A company's financial statements show that its cost of goods sold is ₦120,000 and its gross profit is ₦80,000. What is the company's selling price?
A. ₦200,000
B. ₦220,000
C. ₦240,000
D. ₦260,000
Question 11
A firm is considering two production methods: one that involves a high level of labor and another that involves a high level of capital. Which of the following is a likely consequence of the high-labor method?
A. Increased productivity
B. Decreased productivity
C. No change in productivity
D. Increased labor costs
Question 12
A company's balance sheet shows that its total assets are ₦500,000,000, its total liabilities are ₦300,000,000, and its equity is ₦200,000,000. What is the company's debt-to-equity ratio?
A. 1.5
B. 2.0
C. 2.5
D. 3.0
Question 13
A sole trader named Olamide has a business income of ₦2,000,000 and expenses of ₦800,000. What is Olamide's profit before tax?
A. ₦1,200,000
B. ₦1,200,000
C. ₦1,200,000
D. ₦1,200,000
Question 14
A firm's supply function is given by Q = 100 + 2P, where Q is the quantity supplied and P is the price. If the price is 50, what is the quantity supplied?
A. 150
B. 200
C. 250
D. 300
Question 15
A bank has a reserve requirement of 10% and a cash reserve of ₦100,000. If the bank's customers withdraw ₦500,000 in cash, what is the maximum amount of new loans that the bank can make?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000

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