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

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Question 1
The concept of 'just-in-time' inventory management is closely related to which of the following principles of supply chain management?
A. Economies of scale
B. Global sourcing
C. Total quality management
Correct D. Total cost leadership

Correct Answer: D

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Question 2
A company's marketing strategy is primarily focused on creating a unique selling proposition (USP) that differentiates it from its competitors. Which of the following marketing mix elements is most closely related to the development of a USP?
Correct A. Product
B. Price
C. Promotion
D. Place

Correct Answer: A

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Question 3
A firm's break-even point is the point at which its total revenue equals its total fixed costs. Which of the following equations represents the break-even point for a firm with a fixed cost of ₦10,000 and a variable cost of ₦5 per unit?
Correct A. ( ext{Break-even point} = rac{10000}{x - 5} )
B. ( ext{Break-even point} = rac{10000}{x + 5} )
C. ( ext{Break-even point} = rac{10000}{x - 10} )
D. ( ext{Break-even point} = rac{10000}{x + 10} )

Correct Answer: A

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Question 4
A company is considering the introduction of a new product line. The product has a high fixed cost of ₦50,000 and a variable cost of ₦10 per unit. The selling price of the product is ₦20 per unit. Using the high-low method, what is the contribution margin per unit?
Correct A. ( ext{Contribution margin} = 20 - 10 = 10 )
B. ( ext{Contribution margin} = 20 - 5 = 15 )
C. ( ext{Contribution margin} = 20 - 10 = 10 )
D. ( ext{Contribution margin} = 20 - 5 = 15 )

Correct Answer: A

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Question 5
A firm's marketing mix is a set of variables that the firm uses to promote its products. Which of the following is NOT a part of the marketing mix?
A. Product
B. Price
C. Promotion
Correct D. Research and development

Correct Answer: D

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Question 6
A firm's production function is given by Q = 2L^0.4K^0.3, where Q is output, L is labor, and K is capital. If the firm wants to increase its output by 20% while keeping labor constant, what percentage increase in capital is required?
A. 10%
B. 20%
Correct C. 30%
D. 40%

Correct Answer: C

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Question 7
A company is considering two different marketing strategies: Strategy A, which involves a 10% increase in advertising expenditure, and Strategy B, which involves a 20% decrease in advertising expenditure. If the current advertising expenditure is ₦100,000, what is the total advertising expenditure for each strategy?
A. ₦110,000
Correct B. ₦90,000
C. ₦100,000
D. ₦120,000

Correct Answer: B

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Question 8
A firm's cost function is given by C = 2L + 3K, where C is cost, L is labor, and K is capital. If the firm wants to minimize its cost while producing 100 units of output, and the wage rate is ₦50 per hour, what is the optimal level of capital?
A. ₦1,000
B. ₦1,500
Correct C. ₦2,000
D. ₦2,500

Correct Answer: C

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Question 9
A company is considering two different production processes: Process A, which involves a fixed cost of ₦50,000 and a variable cost of ₦10 per unit, and Process B, which involves a fixed cost of ₦30,000 and a variable cost of ₦15 per unit. If the company produces 1,000 units, what is the total cost for each process?
A. ₦60,000
B. ₦65,000
C. ₦70,000
Correct D. ₦75,000

Correct Answer: D

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Question 10
A firm's revenue function is given by R = 2Q^2 - 5Q + 10, where R is revenue and Q is output. If the firm produces 10 units of output, what is the marginal revenue?
A. ₦20
Correct B. ₦30
C. ₦40
D. ₦50

Correct Answer: B

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Question 11
A firm specializes in producing a single product. If the production of this product is subject to economies of scale, which of the following is a likely consequence?
Correct A. The firm's average cost per unit will decrease as output increases.
B. The firm's average cost per unit will increase as output increases.
C. The firm's marginal cost will decrease as output increases.
D. The firm's marginal cost will increase as output increases.

Correct Answer: A

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Question 12
A company uses the just-in-time (JIT) inventory system. Which of the following is a characteristic of JIT?
A. High inventory levels
Correct B. Low inventory levels
C. Long lead times
D. High production costs

Correct Answer: B

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Question 13
A bank offers a 5-year certificate of deposit (CD) with a 6% annual interest rate compounded annually. If 10,000 is invested, how much will the investment be worth at the end of the 5-year period?
Correct A. \16,386.16
B. \16,386.19
C. \16,386.21
D. \16,386.23

Correct Answer: A

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Question 14
A sole proprietorship is a type of business ownership structure. Which of the following is a characteristic of a sole proprietorship?
A. Limited liability
Correct B. Unlimited liability
C. Separate business entity
D. Partnership

Correct Answer: B

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Question 15
A company uses the marketing mix (4 Ps) to develop its marketing strategy. Which of the following is a component of the marketing mix?
A. Product
B. Price
C. Promotion
Correct D. All of the above

Correct Answer: D

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Question 16
A company is considering two marketing strategies: one that focuses on social media advertising and another that focuses on influencer marketing. If the company has a limited budget of ₦500,000, which strategy would you recommend?
Correct A. Social media advertising
B. Influencer marketing
C. Both social media advertising and influencer marketing
D. Neither social media advertising nor influencer marketing

Correct Answer: A

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Question 17
A sole trader has a business income of ₦2,000,000 and expenses of ₦800,000. What is the sole trader's profit?
Correct A. ₦1,200,000
B. ₦1,200,000
C. ₦1,200,000
D. ₦1,200,000

Correct Answer: A

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Question 18
A company has a 10% dividend yield on its shares. If the company's share price is ₦100, what is the dividend per share?
Correct A. ₦10
B. ₦10
C. ₦10
D. ₦10

Correct Answer: A

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Question 19
A bank has a 5% interest rate on its savings account. If a customer deposits ₦10,000, how much interest will the customer earn in one year?
Correct A. ₦500
B. ₦500
C. ₦500
D. ₦500

Correct Answer: A

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Question 20
A company exports goods worth ₦5,000,000 to a foreign country. If the exchange rate is 1 USD = ₦500, how much is the export worth in USD?
Correct A. 10,000
B. 10,000
C. 10,000
D. 10,000

Correct Answer: A

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Question 21
The Central Bank of Nigeria (CBN) uses the monetary policy instrument of open market operations (OMO) to influence the money supply in the economy. Which of the following is a correct description of the OMO process?
Correct A. The CBN sells government securities to commercial banks, which then use the funds to lend to the private sector.
B. The CBN buys government securities from commercial banks, which then use the funds to invest in the stock market.
C. The CBN lends money directly to the private sector, bypassing commercial banks.
D. The CBN sells foreign exchange to commercial banks, which then use the funds to import goods and services.

Correct Answer: A

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Question 22
A company is considering the use of just-in-time (JIT) inventory management system. Which of the following is a key benefit of JIT?
Correct A. Reduced inventory costs
B. Improved product quality
C. Increased flexibility in production planning
D. Enhanced customer satisfaction

Correct Answer: A

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Question 23
A firm is considering the use of a warehouse management system (WMS) to optimize its inventory management. Which of the following is a key feature of a WMS?
Correct A. Automated tracking and monitoring of inventory levels
B. Real-time reporting and analytics
C. Integration with enterprise resource planning (ERP) systems
D. Optimization of transportation and logistics

Correct Answer: A

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Question 24
A company is considering the use of a supply chain risk management (SCRM) system to mitigate potential risks in its supply chain. Which of the following is a key benefit of SCRM?
Correct A. Improved supply chain visibility and transparency
B. Enhanced collaboration and communication with suppliers
C. Reduced supply chain costs and improved efficiency
D. Increased flexibility and responsiveness to changing market conditions

Correct Answer: A

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Question 25
A firm is considering the use of a transportation management system (TMS) to optimize its logistics operations. Which of the following is a key feature of a TMS?
Correct A. Automated routing and scheduling of transportation
B. Real-time tracking and monitoring of shipments
C. Integration with warehouse management systems (WMS)
D. Optimization of transportation modes and carriers

Correct Answer: A

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