POST UTME SUMMIT UNIVERSITY 2022 Commerce | Objective

Are you preparing for POST UTME SUMMIT UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2022 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
A company has two business units: A and B. Unit A has a profit of ₦120,000 and a loss of ₦80,000. Unit B has a profit of ₦150,000 and a loss of ₦70,000. What is the overall profit of the company?
Correct A. ₦180,000
B. ₦120,000
C. ₦150,000
D. ₦100,000

Correct Answer: A

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Question 2
A company has two business units: A and B. Unit A has a profit of ₦120,000 and a loss of ₦80,000. Unit B has a profit of ₦150,000 and a loss of ₦70,000. What is the overall profit of the company?
Correct A. ₦180,000
B. ₦120,000
C. ₦150,000
D. ₦100,000

Correct Answer: A

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Question 3
A company has two business units: A and B. Unit A has a profit of ₦120,000 and a loss of ₦80,000. Unit B has a profit of ₦150,000 and a loss of ₦70,000. What is the overall profit of the company?
Correct A. ₦180,000
B. ₦120,000
C. ₦150,000
D. ₦100,000

Correct Answer: A

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Question 4
A company has two business units: A and B. Unit A has a profit of ₦120,000 and a loss of ₦80,000. Unit B has a profit of ₦150,000 and a loss of ₦70,000. What is the overall profit of the company?
Correct A. ₦180,000
B. ₦120,000
C. ₦150,000
D. ₦100,000

Correct Answer: A

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Question 5
A company has two business units: A and B. Unit A has a profit of ₦120,000 and a loss of ₦80,000. Unit B has a profit of ₦150,000 and a loss of ₦70,000. What is the overall profit of the company?
Correct A. ₦180,000
B. ₦120,000
C. ₦150,000
D. ₦100,000

Correct Answer: A

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Question 6
What is the primary goal of the General Agreement on Tariffs and Trade (GATT)?
Correct A. To promote free trade among member countries
B. To reduce tariffs and non-tariff barriers
C. To establish a common external tariff
D. To create a single market among member countries

Correct Answer: A

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Question 7
A firm produces two goods, X and Y, using two inputs, labor (L) and capital (K). The production function for good X is given by Q_X = 2L^0.4K^0.6. The production function for good Y is given by Q_Y = 3L^0.7K^0.3. If the firm has 100 units of labor and 50 units of capital, how many units of good X will it produce?
A. 200
B. 250
Correct C. 300
D. 350

Correct Answer: C

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Question 8
A company has a policy of paying its employees a minimum of ₦50,000 per month. If an employee is paid a total of ₦200,000 in a month, how much of that amount is above the minimum wage?
Correct A. ₦150,000
B. ₦120,000
C. ₦100,000
D. ₦80,000

Correct Answer: A

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Question 9
A firm is considering two investment projects, A and B. Project A has a net present value (NPV) of ₦100,000 and a payback period of 5 years. Project B has an NPV of ₦120,000 and a payback period of 4 years. Which project should the firm choose?
A. Project A
Correct B. Project B
C. Both projects are equally good
D. Neither project is good

Correct Answer: B

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Question 10
A consumer has a budget of ₦100,000 and is considering two goods, A and B. Good A costs ₦50,000 and good B costs ₦60,000. If the consumer buys good A, how much money will they have left to spend on good B?
A. ₦50,000
Correct B. ₦40,000
C. ₦30,000
D. ₦20,000

Correct Answer: B

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Question 11
A firm's inventory turnover ratio is 8.5 times per year. If the cost of goods sold is ₦1,500,000, what is the total value of the inventory?
A. ₦1,500,000
B. ₦1,800,000
Correct C. ₦2,100,000
D. ₦2,400,000

Correct Answer: C

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Question 12
A bank's reserve requirement is 10%. If the bank has ₦1,000,000 in deposits, how much must it hold in reserve?
A. ₦100,000
Correct B. ₦110,000
C. ₦120,000
D. ₦130,000

Correct Answer: B

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Question 13
A firm's cost of goods sold is ₦1,500,000. If the firm's profit margin is 15%, what is the total revenue?
A. ₦1,750,000
B. ₦2,000,000
Correct C. ₦2,250,000
D. ₦2,500,000

Correct Answer: C

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Question 14
A firm's inventory turnover ratio is 8.5 times per year. If the total value of the inventory is ₦2,100,000, what is the cost of goods sold?
A. ₦1,500,000
B. ₦1,800,000
Correct C. ₦2,100,000
D. ₦2,400,000

Correct Answer: C

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Question 15
A bank's reserve requirement is 10%. If the bank has ₦1,000,000 in deposits, how much can it lend?
A. ₦900,000
B. ₦950,000
C. ₦1,000,000
Correct D. ₦1,050,000

Correct Answer: D

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Question 16
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. Which of the following statements best describes the opportunity cost of a country?
Correct A. The value of a good that could have been produced instead
B. The quantity of a good that could have been produced instead
C. The price of a good that could have been produced instead
D. The quality of a good that could have been produced instead

Correct Answer: A

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Question 17
A company is considering launching a new product in a foreign market. Which of the following marketing strategies would be most effective in reaching the target audience?
A. Social media advertising
Correct B. Influencer marketing
C. Content marketing
D. Search engine optimization

Correct Answer: B

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Question 18
A business owner has a 10% chance of winning a contract worth ₦1,000,000. What is the expected value of the contract?
Correct A. ₦100,000
B. ₦200,000
C. ₦500,000
D. ₦1,000,000

Correct Answer: A

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Question 19
A company has a production cost of ₦500 per unit and a selling price of ₦700 per unit. What is the profit per unit?
A. ₦100
B. ₦200
Correct C. ₦300
D. ₦400

Correct Answer: C

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Question 20
A business owner has a 20% chance of winning a contract worth ₦500,000. What is the expected value of the contract?
A. ₦100,000
B. ₦200,000
Correct C. ₦400,000
D. ₦500,000

Correct Answer: C

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Question 21
In a perfectly competitive market, the law of diminishing marginal utility leads to a downward-sloping demand curve for a firm's product. What is the primary reason for this downward slope?
Correct A. As consumers become satiated with the product, their willingness to pay decreases.
B. The product's quality decreases as the quantity consumed increases.
C. The product's price increases as the quantity consumed increases.
D. The product's demand is inelastic.

Correct Answer: A

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Question 22
A company's production function is given by Q = 2L^0.5K^0.5. If the company wants to produce 16 units of output, and the wage rate is ₦100 per hour, what is the minimum amount of capital it needs to hire?
A. ₦800
Correct B. ₦1000
C. ₦1200
D. ₦1600

Correct Answer: B

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Question 23
A firm's cost function is given by C = 2L + 3K. If the firm hires 4 units of labor and 2 units of capital, what is its total cost?
A. ₦14
Correct B. ₦16
C. ₦18
D. ₦20

Correct Answer: B

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Question 24
A company's revenue function is given by R = 2Q^2. If the company sells 4 units of output, what is its total revenue?
A. ₦16
B. ₦32
Correct C. ₦64
D. ₦128

Correct Answer: C

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Question 25
A firm's profit function is given by π = R - C. If the firm's revenue is ₦100 and its cost is ₦60, what is its profit?
A. ₦20
Correct B. ₦40
C. ₦60
D. ₦80

Correct Answer: B

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