POST UTME UI 2022 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 2022 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
In a sole trade business, the owner is personally liable for all debts and obligations. What is the legal term for this type of liability?
Correct A. Unlimited liability
B. Limited liability
C. Joint liability
D. Several liability

Correct Answer: A

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Question 2
A company has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. If the company issues 80,000 shares, what is the total amount of share capital raised?
Correct A. ₦800,000
B. ₦1,000,000
C. ₦1,200,000
D. ₦1,500,000

Correct Answer: A

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Question 3
A consumer purchases a product with a price of ₦5,000. If the product is subject to a 10% sales tax, what is the total amount paid by the consumer?
Correct A. ₦5,500
B. ₦5,000
C. ₦5,100
D. ₦5,200

Correct Answer: A

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Question 4
A company has a debt of ₦1,500,000 and an equity of ₦2,000,000. What is the company's total capital?
Correct A. ₦3,500,000
B. ₦3,000,000
C. ₦3,500,000
D. ₦3,000,000

Correct Answer: A

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Question 5
A sole trader has a business income of ₦500,000 and a personal income of ₦200,000. What is the total income of the sole trader?
Correct A. ₦700,000
B. ₦500,000
C. ₦600,000
D. ₦800,000

Correct Answer: A

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Question 6
In a perfectly competitive market, the supply curve is upward-sloping because
Correct A. Firms are willing to supply more of the good as its price increases.
B. Firms are willing to supply less of the good as its price increases.
C. The law of diminishing marginal returns causes firms to supply less of the good as its price increases.
D. The law of increasing opportunity costs causes firms to supply more of the good as its price increases.

Correct Answer: A

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Question 7
A company has a production function Q = 2L^2 + 3K, where Q is the quantity of output, L is labor, and K is capital. If the price of labor is 10 per hour and the price of capital is 20 per unit, and if the company wants to maximize its profit, what is the optimal level of labor?
A. 10
Correct B. 15
C. 20
D. 25

Correct Answer: B

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Question 8
A firm has a cost function C = 100 + 2L + 3K, where C is the total cost, L is labor, and K is capital. If the price of labor is 10 per hour and the price of capital is 20 per unit, and if the firm wants to minimize its cost, what is the optimal level of labor?
A. 5
Correct B. 10
C. 15
D. 20

Correct Answer: B

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Question 9
A company has a revenue function R = 100Q - 2Q^2, where R is the total revenue and Q is the quantity of output. If the company wants to maximize its revenue, what is the optimal level of output?
A. 10
Correct B. 20
C. 30
D. 40

Correct Answer: B

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Question 10
A firm has a profit function π = 100Q - 2Q^2 - 100 - 2L - 3K, where π is the total profit, Q is the quantity of output, L is labor, and K is capital. If the price of labor is 10 per hour and the price of capital is 20 per unit, and if the firm wants to maximize its profit, what is the optimal level of labor?
A. 5
Correct B. 10
C. 15
D. 20

Correct Answer: B

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Question 11
A sole trader's business is considered a separate legal entity from its owner. What is the primary reason for this separation?
Correct A. To limit the owner's personal liability
B. To simplify tax compliance
C. To increase the business's creditworthiness
D. To reduce the owner's control over the business

Correct Answer: A

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Question 12
A company's production process involves the conversion of raw materials into finished goods. What is the primary goal of this process?
A. To minimize production costs
B. To maximize profit margins
C. To increase product quality
Correct D. To reduce waste and inefficiency

Correct Answer: D

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Question 13
A marketing strategy involves the creation of a new product to target a specific customer segment. What is the primary benefit of this approach?
Correct A. Increased market share
B. Improved brand recognition
C. Enhanced customer loyalty
D. Reduced competition

Correct Answer: A

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Question 14
A company's transportation network involves the use of trucks to deliver goods to customers. What is the primary advantage of this approach?
A. Increased flexibility
B. Improved reliability
C. Enhanced customer service
Correct D. Reduced transportation costs

Correct Answer: D

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Question 15
A company's warehousing and stock control system involves the use of barcodes to track inventory levels. What is the primary benefit of this approach?
A. Improved inventory accuracy
B. Enhanced supply chain visibility
Correct C. Reduced stockouts and overstocking
D. Increased storage capacity

Correct Answer: C

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Question 16
A company's production process involves the use of a just-in-time (JIT) inventory system. What is the primary goal of this approach?
A. To minimize inventory costs
B. To maximize production efficiency
Correct C. To reduce lead times and improve responsiveness
D. To increase product quality

Correct Answer: C

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Question 17
A company's marketing strategy involves the use of social media to engage with customers. What is the primary benefit of this approach?
A. Increased brand awareness
Correct B. Improved customer engagement
C. Enhanced customer loyalty
D. Reduced marketing costs

Correct Answer: B

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Question 18
A company's transportation network involves the use of a logistics provider to manage its supply chain. What is the primary advantage of this approach?
Correct A. Improved supply chain visibility
B. Enhanced customer service
C. Reduced transportation costs
D. Increased storage capacity

Correct Answer: A

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Question 19
A company's warehousing and stock control system involves the use of radio frequency identification (RFID) tags to track inventory levels. What is the primary benefit of this approach?
Correct A. Improved inventory accuracy
B. Enhanced supply chain visibility
C. Reduced stockouts and overstocking
D. Increased storage capacity

Correct Answer: A

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Question 20
A company's production process involves the use of a lean manufacturing system. What is the primary goal of this approach?
A. To minimize production costs
B. To maximize production efficiency
Correct C. To reduce waste and inefficiency
D. To increase product quality

Correct Answer: C

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Question 21
A company's risk management strategy involves diversification of assets to minimize potential losses. Which of the following is an example of a diversification strategy?
A. Investing in a single stock
Correct B. Spreading investments across different asset classes
C. Focusing on a specific industry
D. Diversifying investments within a single industry

Correct Answer: B

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Question 22
A firm's marketing strategy involves creating a unique selling proposition (USP) to differentiate its products from competitors. Which of the following is an example of a USP?
A. Lower price point
B. Higher quality products
Correct C. Unique product features
D. Strong brand recognition

Correct Answer: C

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Question 23
A bank's financial institution strategy involves offering a range of financial products to customers. Which of the following is an example of a financial product?
Correct A. Loans
B. Credit cards
C. Investment services
D. Insurance policies

Correct Answer: A

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Question 24
A company's home trade strategy involves exporting goods to other countries. Which of the following is an example of a home trade strategy?
A. Importing goods from other countries
Correct B. Exporting goods to other countries
C. Investing in foreign markets
D. Participating in international trade fairs

Correct Answer: B

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Question 25
A firm's foreign trade strategy involves importing goods from other countries. Which of the following is an example of a foreign trade strategy?
A. Exporting goods to other countries
Correct B. Importing goods from other countries
C. Investing in foreign markets
D. Participating in international trade fairs

Correct Answer: B

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