POST UTME UNILAG 2025 Commerce | Objective

Are you preparing for POST UTME UNILAG 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.

Practice these randomly selected questions to test your readiness.

Question 1
In a sole trader business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Easy to set up
Correct C. Flexibility in decision-making
D. No tax benefits

Correct Answer: C

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Question 2
A company is considering expanding its operations to a new market. What type of risk is the company facing?
Correct A. Market risk
B. Credit risk
C. Liquidity risk
D. Operational risk

Correct Answer: A

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Question 3
A consumer purchases a product with a 2-year warranty. What type of insurance is the consumer purchasing?
A. Life insurance
B. Health insurance
C. Home insurance
Correct D. Product warranty insurance

Correct Answer: D

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Question 4
A company is considering exporting its products to a foreign market. What type of trade is the company engaging in?
A. Import
B. Export
C. Domestic trade
Correct D. International trade

Correct Answer: D

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Question 5
A sole trader business is considering hiring an employee. What type of contract should the business use?
A. Service contract
Correct B. Employment contract
C. Agency contract
D. Franchise contract

Correct Answer: B

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Question 6
A company is considering two marketing strategies: Strategy A, which involves a 10% discount on all products for the next quarter, and Strategy B, which involves a 5% increase in prices for the next quarter. If the company's current revenue is ₦10 million and the demand for its products is elastic, which strategy would result in a higher revenue?
Correct A. Strategy A
B. Strategy B
C. Both strategies would result in the same revenue
D. Neither strategy would result in a higher revenue

Correct Answer: A

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Question 7
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
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 8
A company has a policy of paying its employees a 10% bonus on their annual salaries. If an employee's annual salary is ₦500,000, what is the total amount the employee will receive at the end of the year?
A. ₦550,000
Correct B. ₦600,000
C. ₦650,000
D. ₦700,000

Correct Answer: B

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Question 9
A consumer protection agency has received a complaint from a customer who was sold a defective product. The product was sold for ₦20,000, and the customer is seeking a refund of ₦15,000. What is the amount the consumer protection agency should order the seller to pay?
A. ₦5,000
B. ₦10,000
Correct C. ₦15,000
D. ₦20,000

Correct Answer: C

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Question 10
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
Correct C. ₦115,000
D. ₦120,000

Correct Answer: C

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Question 11
In a market with perfect competition, the demand curve for a firm's product is downward sloping. What is the implication of this for the firm's marginal revenue (MR) curve?
A. The MR curve is upward sloping.
Correct B. The MR curve is downward sloping.
C. The MR curve is horizontal.
D. The MR curve is vertical.

Correct Answer: B

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Question 12
A company is considering two different marketing strategies for its new product. Strategy A involves a high initial investment but low ongoing costs, while Strategy B involves low initial investment but high ongoing costs. Which strategy is more likely to result in a higher return on investment (ROI) in the long run?
Correct A. Strategy A
B. Strategy B
C. Both strategies are equally likely to result in a higher ROI.
D. It is impossible to determine which strategy will result in a higher ROI.

Correct Answer: A

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Question 13
A consumer has a budget of ₦1000 to spend on two goods, X and Y. The price of good X is ₦200 and the price of good Y is ₦300. Using the budget constraint equation, what is the maximum amount the consumer can spend on good X?
A. ₦400
Correct B. ₦500
C. ₦600
D. ₦800

Correct Answer: B

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Question 14
A company is considering the purchase of a new machine that costs ₦500,000. The machine is expected to last for 5 years and will save the company ₦100,000 per year in labor costs. What is the net present value (NPV) of the machine, assuming a discount rate of 10%?
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

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Question 15
A sole trader has a business income of ₦500,000 and business expenses of ₦200,000. What is the sole trader's taxable profit?
A. ₦300,000
Correct B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: B

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Question 16
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. Which of the following is a correct example of comparative advantage?
A. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
Correct B. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 150 units of cloth.
C. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 100 units of wheat and 50 units of cloth.
D. Country A produces 50 units of wheat and 100 units of cloth, while Country B produces 100 units of wheat and 50 units of cloth.

Correct Answer: B

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Question 17
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
Correct C. ₦1000
D. ₦1200

Correct Answer: C

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Question 18
A consumer protection agency receives a complaint from a customer who purchased a product online. The customer claims that the product was not as described. Which of the following is a correct step that the agency should take?
A. The agency should investigate the complaint and provide a refund to the customer.
Correct B. The agency should contact the seller and request that they provide a refund to the customer.
C. The agency should dismiss the complaint and inform the customer that they are not responsible.
D. The agency should refer the complaint to a higher authority for further action.

Correct Answer: B

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Question 19
A company has a policy of paying its employees a bonus of 10% of their salary after 6 months of service. If an employee earns ₦50,000 per month, how much will they receive as a bonus after 6 months?
A. ₦5,000
B. ₦6,000
Correct C. ₦7,000
D. ₦8,000

Correct Answer: C

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Question 20
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
Correct C. ₦1,250,000
D. ₦1,300,000

Correct Answer: C

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Question 21
A company is considering exporting its products to a foreign market. Which of the following is a key factor to consider in the decision-making process?
A. Political stability of the foreign market
Correct B. Economic conditions of the foreign market
C. Cultural differences between the home and foreign markets
D. Environmental regulations of the foreign market

Correct Answer: B

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Question 22
A sole trader is considering expanding its business operations to a new location. Which of the following is a key advantage of expanding the business?
A. Increased competition in the market
Correct B. Improved access to new customers and suppliers
C. Reduced costs due to economies of scale
D. Increased risk of business failure

Correct Answer: B

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Question 23
A company is considering launching a new product. Which of the following is a key factor to consider in the product development process?
Correct A. Market research and analysis
B. Product design and development
C. Production and manufacturing costs
D. Marketing and advertising strategies

Correct Answer: A

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Question 24
A bank is considering lending money to a customer. Which of the following is a key factor to consider in the lending decision?
Correct A. Creditworthiness of the customer
B. Collateral offered by the customer
C. Interest rate offered by the bank
D. Loan term and repayment schedule

Correct Answer: A

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Question 25
A company is considering entering into a joint venture with another company. Which of the following is a key advantage of entering into a joint venture?
A. Increased competition in the market
Correct B. Improved access to new customers and suppliers
C. Reduced costs due to economies of scale
D. Increased risk of business failure

Correct Answer: B

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