POST UTME UNILAG 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader, Mr. Johnson, has a business that generates an average profit of ₦50,000 per month. If he wants to expand his business and increase his profit by 20%, how much more capital will he need to invest?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 2
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing
A. diminishing returns
B. increasing costs
C. decreasing marginal revenue
D. constant returns to scale
Question 3
A sole trader business is considering hiring an employee. What type of contract should the business use?
A. Service contract
B. Employment contract
C. Agency contract
D. Franchise contract
Question 4
In a sole trader business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Easy to set up
C. Flexibility in decision-making
D. No tax benefits
Question 5
A company is considering two different marketing strategies: Strategy A, which involves a 10% increase in advertising expenditure, and Strategy B, which involves a 5% decrease in advertising expenditure. If the company's current advertising expenditure is ₦100,000, how much will it spend on advertising under Strategy A?
A. ₦110,000
B. ₦105,000
C. ₦100,000
D. ₦95,000
Question 6
A bank has a loan of ₦1,000,000 at an interest rate of 12% per annum. If the loan is compounded annually, what will be the total amount owed after 2 years?
A. ₦1,144,000
B. ₦1,200,000
C. ₦1,250,000
D. ₦1,300,000
Question 7
A business owner purchases a policy that covers losses due to fire, theft, and liability. This is an example of which type of insurance?
A. Property Insurance
B. Liability Insurance
C. Casualty Insurance
D. All of the above
Question 8
A company uses a marketing strategy that involves creating a sense of urgency to encourage customers to make a purchase. This is an example of which of the following?
A. Scarcity
B. Social Proof
C. Authority
D. Liking
Question 9
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 20% and capital remains constant, what is the percentage change in cost?
A. 10%
B. 20%
C. 30%
D. 40%
Question 10
A company has a warehouse with a capacity of 1000 units. The company receives an order for 800 units. If the company uses a first-in-first-out (FIFO) inventory system, what is the total cost of the units in the warehouse?
A. ₦800
B. ₦900
C. ₦1000
D. ₦1200
Question 11
A bank has a policy of paying interest on deposits at a rate of 5% per annum. If a customer deposits ₦100,000 for one year, what is the total amount the customer will receive at the end of the year?
A. ₦105,000
B. ₦110,000
C. ₦115,000
D. ₦120,000
Question 12
A company is considering expanding its operations to a new market. What type of risk is the company facing?
A. Market risk
B. Credit risk
C. Liquidity risk
D. Operational risk
Question 13
A sole trader, Mr. A, has an annual income of ₦1,500,000 and annual expenses of ₦800,000. He pays 25% tax on his income. What is his net income after tax?
A. ₦1,200,000
B. ₦1,250,000
C. ₦1,300,000
D. ₦1,350,000
Question 14
A bank has a reserve requirement of 10% and a cash reserve of ₦1,000,000. If the bank's deposits are ₦10,000,000, what is the maximum amount of loans the bank can make?
A. ₦8,000,000
B. ₦9,000,000
C. ₦10,000,000
D. ₦11,000,000
Question 15
A firm's production function is given by Q = 2L + 3K, where Q is the quantity produced, L is the number of labor units, and K is the number of capital units. If the firm wants to produce 10 units of output, how many labor units will it need to hire?
A. 2
B. 3
C. 4
D. 5

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