POST UTME UNIPORT 2018 Commerce | Objective

Are you preparing for POST UTME UNIPORT exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 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, what is the primary advantage of using a sole trader 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 has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. If the company issues 20,000 shares to the public, what is the amount of share premium received?
A. ₦100,000
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

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Question 3
A consumer purchases a product for ₦5,000 and pays a deposit of ₦1,000. If the consumer returns the product within 30 days, what is the amount of refund due?
A. ₦4,000
B. ₦3,000
C. ₦2,000
Correct D. ₦1,000

Correct Answer: D

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Question 4
A company has a market share of 20% in the Nigerian market. If the company wants to increase its market share by 5%, what is the new market share?
A. 25%
Correct B. 30%
C. 35%
D. 40%

Correct Answer: B

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Question 5
A company has a profit of ₦500,000 and a turnover of ₦5,000,000. What is the gross profit margin?
A. 10%
Correct B. 15%
C. 20%
D. 25%

Correct Answer: B

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Question 6
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases labor input from 100 to 121 units and capital input from 100 to 121 units, what is the percentage change in the quantity produced?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 7
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm increases the price from ₦50 to ₦60, what is the percentage change in the quantity demanded?
A. -20%
Correct B. -10%
C. 10%
D. 20%

Correct Answer: B

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Question 8
A company's cost function is given by C = 100 + 2L + 3K, where C is the total cost, L is the labor input, and K is the capital input. If the company increases labor input from 50 to 60 units and capital input from 50 to 60 units, what is the percentage change in the total cost?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 9
A firm's revenue function is given by R = 100P - 2P^2, where R is the total revenue and P is the price. If the firm increases the price from ₦50 to ₦60, what is the percentage change in the total revenue?
A. -20%
Correct B. -10%
C. 10%
D. 20%

Correct Answer: B

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Question 10
A company's profit function is given by π = 100P - 2P^2 - 100 - 2L - 3K, where π is the profit, P is the price, L is the labor input, and K is the capital input. If the company increases labor input from 50 to 60 units and capital input from 50 to 60 units, what is the percentage change in the profit?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 11
A sole trader's business is registered under which of the following?
A. Partnership
Correct B. Sole Proprietorship
C. Limited Liability Company
D. Cooperative Society

Correct Answer: B

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Question 12
The production process involves which of the following?
A. Design
B. Manufacturing
C. Packaging
Correct D. All of the above

Correct Answer: D

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Question 13
A company's financial statement shows a net loss of ₦500,000. What is the accounting treatment for this?
A. Debit the Profit and Loss Account
Correct B. Credit the Profit and Loss Account
C. Debit the Capital Account
D. Credit the Capital Account

Correct Answer: B

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Question 14
A firm imports goods from a foreign country. What type of trade is this?
A. Export
Correct B. Import
C. Domestic Trade
D. International Trade

Correct Answer: B

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Question 15
A company's inventory is valued at ₦1,000,000. What is the accounting treatment for this?
Correct A. Debit the Inventory Account
B. Credit the Inventory Account
C. Debit the Cost of Goods Sold Account
D. Credit the Cost of Goods Sold Account

Correct Answer: A

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Question 16
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. decrease
Correct B. increase
C. remain constant
D. become elastic

Correct Answer: B

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Question 17
A firm's production function is given by Q = 2L + 3K, where Q is the quantity produced, L is the number of laborers, and K is the amount of capital. If the firm hires 5 laborers and 3 units of capital, what is the quantity produced?
A. 10
B. 15
Correct C. 20
D. 25

Correct Answer: C

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Question 18
A company has a warehouse with a capacity of 1000 units. The warehouse is currently filled with 500 units. If the company receives a new shipment of 200 units, what is the new percentage of the warehouse that is filled?
A. 40
Correct B. 50
C. 60
D. 70

Correct Answer: B

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Question 19
A consumer has a budget of ₦1000 and a preference for two goods: A and B. The prices of the goods are ₦200 and ₦300 respectively. If the consumer spends all of their budget, how many units of good A will they purchase?
A. 2
Correct B. 3
C. 4
D. 5

Correct Answer: B

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Question 20
A firm has a production function given by Q = 2L + 3K, where Q is the quantity produced, L is the number of laborers, and K is the amount of capital. If the firm hires 5 laborers and 3 units of capital, what is the marginal product of labor?
A. 1
Correct B. 2
C. 3
D. 4

Correct Answer: B

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Question 21
In a market economy, what is the primary role of the consumer in the production process?
Correct A. To allocate resources based on their own preferences and budget constraints
B. To produce goods and services using their own resources
C. To regulate the market to ensure fair competition
D. To provide employment opportunities for workers

Correct Answer: A

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Question 22
A company is considering two different production processes for a new product. Process A requires an initial investment of ₦100,000 and produces 100 units per day, while Process B requires an initial investment of ₦200,000 and produces 200 units per day. If the company wants to maximize its profit, which process should it choose?
A. Process A, as it has a lower initial investment
B. Process B, as it produces more units per day
C. Process A, as it has a higher profit margin
Correct D. Process B, as it has a lower cost per unit

Correct Answer: D

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Question 23
A company is considering launching a new product in a foreign market. The company has conducted market research and determined that the demand for the product is elastic. What is the likely effect of a price increase on the demand for the product?
A. The demand for the product will increase
Correct B. The demand for the product will decrease
C. The demand for the product will remain unchanged
D. The demand for the product will be unaffected by the price increase

Correct Answer: B

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Question 24
A sole trader is considering hiring an employee to help with the workload. What are the tax implications of hiring an employee?
Correct A. The sole trader will be liable for the employee's taxes
B. The employee will be liable for their own taxes
C. The sole trader will not be liable for the employee's taxes
D. The employee will be exempt from paying taxes

Correct Answer: A

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Question 25
A company is considering launching a new product in a foreign market. The company has conducted market research and determined that the demand for the product is inelastic. What is the likely effect of a price increase on the demand for the product?
A. The demand for the product will increase
B. The demand for the product will decrease
Correct C. The demand for the product will remain unchanged
D. The demand for the product will be unaffected by the price increase

Correct Answer: C

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