POST UTME UI 2020 Commerce | Objective

Are you preparing for POST UTME UI exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader's business is registered under which of the following?
A. Partnership
B. Company
Correct C. Sole Proprietorship
D. Limited Liability Partnership

Correct Answer: C

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Question 2
A company's articles of association can be amended by a
A. Simple Majority
B. Two-Thirds Majority
C. Special Resolution
Correct D. Ordinary Resolution

Correct Answer: D

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Question 3
A warehouse's inventory control system uses the
Correct A. First-In-First-Out (FIFO)
B. Last-In-First-Out (LIFO)
C. Weighted Average Cost (WAC)
D. Least Recently Used (LRU)

Correct Answer: A

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Question 4
A bank's reserve requirement is
Correct A. The minimum amount of cash that a bank must hold in reserve
B. The maximum amount of credit that a bank can extend to its customers
C. The minimum amount of deposits that a bank must maintain
D. The maximum amount of loans that a bank can grant

Correct Answer: A

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Question 5
A company's financial statements are audited by
A. The company's management
B. The company's board of directors
Correct C. An independent auditor
D. The company's shareholders

Correct Answer: C

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Question 6
A company's sole trader is considering expanding its operations to a foreign market. Which of the following is a key consideration for the sole trader when deciding whether to expand?
A. The cost of transportation and logistics
Correct B. The potential for cultural differences to affect customer preferences
C. The availability of local suppliers for raw materials
D. The possibility of currency fluctuations affecting profit margins

Correct Answer: B

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Question 7
A company is considering implementing a just-in-time (JIT) inventory system. What is the primary benefit of JIT?
A. Reduced inventory costs
B. Improved customer service
Correct C. Increased efficiency in production
D. Enhanced supplier relationships

Correct Answer: C

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Question 8
A marketing manager is developing a campaign to promote a new product. Which of the following is a key consideration when selecting a target market?
A. The size of the market
B. The growth potential of the market
C. The level of competition in the market
Correct D. The demographic characteristics of the market

Correct Answer: D

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Question 9
A company is considering implementing a warehouse management system (WMS). What is the primary benefit of a WMS?
A. Improved inventory accuracy
B. Enhanced supply chain visibility
Correct C. Increased efficiency in order fulfillment
D. Reduced labor costs

Correct Answer: C

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Question 10
A bank is considering offering a new credit card product. Which of the following is a key consideration when determining the interest rate for the product?
A. The cost of funds for the bank
B. The level of competition in the market
C. The creditworthiness of the target market
Correct D. The expected return on investment for the bank

Correct Answer: D

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Question 11
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity?
A. ( P = 10, Q = 100 )
B. ( P = 20, Q = 50 )
Correct C. ( P = 15, Q = 75 )
D. ( P = 25, Q = 25 )

Correct Answer: C

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Question 12
A firm's production function is given by ( Q = 2L^2 + 3K ). If the firm's labor and capital inputs are 4 and 2 respectively, what is the total output?
A. ( Q = 20 )
B. ( Q = 25 )
Correct C. ( Q = 30 )
D. ( Q = 35 )

Correct Answer: C

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Question 13
A firm's revenue function is given by ( R = 20Q - Q^2 ). If the firm's output is 5, what is the total revenue?
A. ( R = 50 )
B. ( R = 60 )
Correct C. ( R = 70 )
D. ( R = 80 )

Correct Answer: C

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Question 14
A firm's cost function is given by ( C = 10L + 20K ). If the firm's labor and capital inputs are 2 and 3 respectively, what is the total cost?
A. ( C = 40 )
B. ( C = 50 )
Correct C. ( C = 60 )
D. ( C = 70 )

Correct Answer: C

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Question 15
A firm's profit function is given by ( pi = R - C ). If the firm's revenue and cost functions are ( R = 20Q - Q^2 ) and ( C = 10L + 20K ) respectively, and the firm's output is 5, what is the total profit?
A. ( pi = 30 )
B. ( pi = 40 )
Correct C. ( pi = 50 )
D. ( pi = 60 )

Correct Answer: C

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Question 16
A firm's production function is given by ( Q = 2L^2 + 3K ). If the firm's labor and capital inputs are 4 and 2 respectively, what is the marginal product of labor?
A. ( MPL = 4 )
Correct B. ( MPL = 6 )
C. ( MPL = 8 )
D. ( MPL = 10 )

Correct Answer: B

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Question 17
A firm's revenue function is given by ( R = 20Q - Q^2 ). If the firm's output is 5, what is the marginal revenue?
A. ( MR = 10 )
B. ( MR = 15 )
Correct C. ( MR = 20 )
D. ( MR = 25 )

Correct Answer: C

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Question 18
A firm's cost function is given by ( C = 10L + 20K ). If the firm's labor and capital inputs are 2 and 3 respectively, what is the marginal cost?
A. ( MC = 10 )
B. ( MC = 15 )
Correct C. ( MC = 20 )
D. ( MC = 25 )

Correct Answer: C

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Question 19
A firm's profit function is given by ( pi = R - C ). If the firm's revenue and cost functions are ( R = 20Q - Q^2 ) and ( C = 10L + 20K ) respectively, and the firm's output is 5, what is the marginal profit?
A. ( MP = 10 )
B. ( MP = 15 )
Correct C. ( MP = 20 )
D. ( MP = 25 )

Correct Answer: C

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Question 20
In a perfectly competitive market, the supply curve is upward-sloping because firms are willing to supply more of a good as its price increases, but they are not willing to supply it at a price below their minimum average total cost. What is the name of this minimum average total cost?
Correct A. Average Variable Cost
B. Average Fixed Cost
C. Minimum Efficient Scale
D. Marginal Cost

Correct Answer: A

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Question 21
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm wants to produce 16 units of output, and it has 4 units of labor available, how many units of capital does it need to produce this output?
A. 4
B. 8
Correct C. 16
D. 32

Correct Answer: C

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Question 22
A company is considering two different modes of transportation for its goods: trucking and rail. The cost of trucking is 100 per unit, while the cost of rail is 80 per unit. If the company needs to transport 100 units of goods, and it can negotiate a discount of 10% on the total cost, how much will it save by choosing rail over trucking?
A. 1000
Correct B. 2000
C. 3000
D. 4000

Correct Answer: B

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Question 23
A firm has the following probability distribution for its profits: P(Profit = 100) = 0.2, P(Profit = 200) = 0.3, P(Profit = 300) = 0.2, P(Profit = 400) = 0.15, P(Profit = 500) = 0.25. What is the expected value of the firm's profits?
A. 250
B. 300
Correct C. 350
D. 400

Correct Answer: C

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Question 24
A company is considering two different types of insurance policies: a comprehensive policy that covers all types of risks, and a specific policy that only covers a specific type of risk. The comprehensive policy costs 1000 per year, while the specific policy costs 500 per year. If the company has a 10% chance of incurring a loss of 1000, and a 20% chance of incurring a loss of 2000, how much will it save by choosing the specific policy over the comprehensive policy?
A. 100
Correct B. 200
C. 300
D. 400

Correct Answer: B

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Question 25
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm wants to produce 16 units of output, and it has 4 units of labor available, how many units of capital does it need to produce this output?
A. 4
B. 8
Correct C. 16
D. 32

Correct Answer: C

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