POST UTME SUMMIT UNIVERSITY 2025 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 2025 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
In a perfectly competitive market, the supply curve is typically upward-sloping because of the law of increasing
A. marginal opportunity cost
B. marginal utility
C. marginal revenue
Correct D. marginal cost

Correct Answer: D

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Question 2
A company's production function is given by the equation Q = 2L^2 + 5K, where Q is output, L is labor, and K is capital. If the company wants to produce 100 units of output, how many units of labor are required if capital is fixed at 10 units?
A. 25
Correct B. 50
C. 75
D. 100

Correct Answer: B

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Question 3
A firm is considering two different production processes to produce a certain good. Process A requires an initial investment of ₦10,000 and has a fixed cost of ₦5,000 per unit. Process B requires an initial investment of ₦20,000 and has a fixed cost of ₦3,000 per unit. If the firm produces 1,000 units of the good, which process is more profitable?
Correct A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable

Correct Answer: A

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Question 4
A firm's revenue function is given by the equation R = 2Q^2 - 5Q + 10, where R is revenue and Q is quantity sold. If the firm sells 10 units of the good, what is the total revenue?
A. ₦150
Correct B. ₦200
C. ₦250
D. ₦300

Correct Answer: B

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Question 5
A firm's cost function is given by the equation C = 3L^2 + 2K, where C is cost, L is labor, and K is capital. If the firm hires 5 units of labor and 10 units of capital, what is the total cost?
A. ₦150
B. ₦200
Correct C. ₦250
D. ₦300

Correct Answer: C

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Question 6
A company is considering the introduction of a new product line. The product has a high fixed cost of ₦10 million and a variable cost of ₦5,000 per unit. The selling price of the product is ₦15,000 per unit. If the company expects to sell 10,000 units, what is the minimum revenue required to break even?
A. ₦120 million
Correct B. ₦125 million
C. ₦130 million
D. ₦135 million

Correct Answer: B

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Question 7
A consumer protection agency has received a complaint from a customer who purchased a defective product. The product has a warranty period of 2 years. If the customer purchased the product 1 year ago, what is the maximum amount the manufacturer can be liable for?
A. ₦50,000
B. ₦75,000
Correct C. ₦100,000
D. ₦125,000

Correct Answer: C

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Question 8
A sole trader has a business income of ₦1.5 million and a business expense of ₦750,000. What is the sole trader's business profit?
A. ₦750,000
B. ₦1 million
Correct C. ₦1.25 million
D. ₦1.5 million

Correct Answer: C

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Question 9
A company is considering the introduction of a new marketing strategy. The company has a current market share of 20% and expects to increase its market share by 5% with the new strategy. What is the company's expected market share after implementing the new strategy?
A. 25%
Correct B. 30%
C. 35%
D. 40%

Correct Answer: B

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Question 10
A warehouse has a storage capacity of 10,000 units and is currently storing 8,000 units. If the warehouse receives an additional 2,000 units, what is the percentage of the warehouse's capacity that is currently being utilized?
A. 80%
Correct B. 85%
C. 90%
D. 95%

Correct Answer: B

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Question 11
A bank's liquidity ratio is calculated as the ratio of its liquid assets to its total deposits. If a bank has liquid assets worth ₦120 million and total deposits of ₦180 million, what is its liquidity ratio?
Correct A. 0.67
B. 0.80
C. 0.83
D. 0.90

Correct Answer: A

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Question 12
A company's marketing strategy involves creating a brand identity that appeals to a specific demographic. Which of the following marketing tools would be most effective in achieving this goal?
A. Social media advertising
Correct B. Influencer marketing
C. Content marketing
D. Event marketing

Correct Answer: B

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Question 13
A consumer purchases a product with a warranty that covers repairs for a period of 2 years. If the product is damaged after 18 months, what type of insurance would the consumer need to purchase to cover the cost of repairs?
A. Accidental damage insurance
Correct B. Extended warranty insurance
C. Product liability insurance
D. Professional indemnity insurance

Correct Answer: B

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Question 14
A company's business model involves selling products online through a platform that charges a commission on each sale. If the company sells 100 products at ₦500 each and the platform charges a 10% commission, what is the total commission paid to the platform?
A. ₦5,000
Correct B. ₦5,500
C. ₦6,000
D. ₦6,500

Correct Answer: B

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Question 15
A consumer purchases a product with a price of ₦10,000. If the product is subject to a 5% sales tax, what is the total amount paid by the consumer?
A. ₦10,500
Correct B. ₦10,750
C. ₦11,000
D. ₦11,250

Correct Answer: B

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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 a marketing mix?
A. Increased brand awareness
B. Improved customer loyalty
Correct C. Enhanced reputation
D. Increased sales

Correct Answer: C

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Question 17
A firm's production process involves a series of steps, including raw material procurement, manufacturing, and packaging. Which of the following is a key characteristic of a production process?
A. It involves only one step
B. It involves only two steps
Correct C. It involves multiple steps
D. It involves no steps

Correct Answer: C

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Question 18
A company's warehouse is used for storing raw materials, work-in-progress, and finished goods. Which of the following is a key benefit of using a warehouse?
A. Reduced storage costs
Correct B. Improved inventory management
C. Enhanced customer service
D. Increased sales

Correct Answer: B

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Question 19
A firm's risk management strategy involves identifying, assessing, and mitigating potential risks. Which of the following is a key step in the risk management process?
Correct A. Risk identification
B. Risk assessment
C. Risk mitigation
D. Risk monitoring

Correct Answer: A

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Question 20
A company's transport system involves the use of trucks, trains, and airplanes to move goods from one location to another. Which of the following is a key benefit of using a transport system?
A. Reduced transportation costs
Correct B. Improved delivery times
C. Enhanced customer service
D. Increased sales

Correct Answer: B

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Question 21
A company's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If labor increases by 20% and capital remains constant, what is the percentage change in output?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 22
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the price increases by 20%, what is the new quantity demanded?
A. 80
Correct B. 60
C. 40
D. 20

Correct Answer: B

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Question 23
A company's cost function is given by C = 100L + 200K, where C is cost, L is labor, and K is capital. If labor increases by 10% and capital remains constant, what is the new cost?
A. 1100
Correct B. 1200
C. 1300
D. 1400

Correct Answer: B

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Question 24
A firm's revenue function is given by R = 100Q - 2Q^2, where R is revenue and Q is quantity sold. If the quantity sold increases by 20%, what is the new revenue?
A. 1800
B. 2000
Correct C. 2200
D. 2400

Correct Answer: C

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Question 25
A company's profit function is given by P = R - C, where P is profit, R is revenue, and C is cost. If revenue increases by 10% and cost remains constant, what is the new profit?
A. 100
Correct B. 110
C. 120
D. 130

Correct Answer: B

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