POST UTME VERITAS UNIVERSITY 2017 Commerce | Objective

Are you preparing for POST UTME VERITAS UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering two marketing strategies: Strategy A involves a high initial investment in advertising, while Strategy B involves a low initial investment in advertising but a higher cost per unit of product sold. Which strategy is more likely to result in higher profits in the long run?
Correct A. Strategy A
B. Strategy B
C. Both strategies are equally likely to result in higher profits
D. Neither strategy is likely to result in higher profits

Correct Answer: A

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Question 2
A sole trader is considering expanding their business by opening a new branch. What is the main advantage of this strategy?
A. Increased revenue
B. Reduced costs
C. Improved brand recognition
Correct D. Increased market share

Correct Answer: D

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Question 3
A company is considering importing goods from a foreign country. What is the main advantage of this strategy?
A. Reduced costs
B. Increased revenue
C. Improved brand recognition
Correct D. Access to new markets

Correct Answer: D

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Question 4
A consumer is considering purchasing a product that has a 2-year warranty. What is the main advantage of this warranty?
A. Increased product lifespan
B. Improved product quality
C. Reduced maintenance costs
Correct D. Increased customer satisfaction

Correct Answer: D

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Question 5
A company is considering implementing a new inventory management system. What is the main advantage of this system?
Correct A. Improved stock control
B. Reduced inventory costs
C. Increased sales
D. Improved customer satisfaction

Correct Answer: A

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Question 6
In a perfectly competitive market, the law of supply dictates that as the price of a commodity increases, the quantity supplied will
Correct A. increase
B. decrease
C. remain constant
D. fluctuate

Correct Answer: A

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Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?
A. 24
Correct B. 32
C. 40
D. 48

Correct Answer: B

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Question 8
A consumer's budget constraint is given by 2x + 3y = 18. If the consumer's current income is 18 and the price of good x is 2, what is the consumer's optimal consumption bundle?
Correct A. (3, 6)
B. (6, 3)
C. (9, 0)
D. (0, 9)

Correct Answer: A

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Question 9
A firm's revenue function is given by R = 2x^2 + 3x - 4. If the firm's current output is x = 2, what is the firm's current revenue?
A. 8
Correct B. 10
C. 12
D. 14

Correct Answer: B

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Question 10
A consumer's indifference curve is given by u = 2x + 3y. If the consumer's current income is 18 and the price of good x is 2, what is the consumer's optimal consumption bundle?
Correct A. (3, 6)
B. (6, 3)
C. (9, 0)
D. (0, 9)

Correct Answer: A

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Question 11
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 12
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 total amount of share capital raised?
A. ₦200,000
Correct B. ₦400,000
C. ₦600,000
D. ₦800,000

Correct Answer: B

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Question 13
A warehouse has a storage capacity of 10,000 units. If 5,000 units are already stored, what is the remaining storage capacity?
A. 2,000 units
B. 5,000 units
Correct C. 7,000 units
D. 10,000 units

Correct Answer: C

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Question 14
A company has a policy of paying its employees a 10% bonus on their annual salary. If an employee earns ₦100,000 per annum, what is the bonus amount?
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 15
A business has a stock of 500 units of a product, with a selling price of ₦200 per unit. If the business sells 200 units, what is the total revenue generated?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 16
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity of a product in such a market?
A. ₦100, 100 units
Correct B. ₦120, 80 units
C. ₦150, 60 units
D. ₦180, 40 units

Correct Answer: B

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Question 17
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital are fixed at 100 units each, what is the marginal product of labor?
Correct A. 0.5
B. 1
C. 2
D. 4

Correct Answer: A

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Question 18
A firm's demand function is given by Q = 100 - 2P. If the firm's marginal revenue is 50, what is the price elasticity of demand?
A. 0.5
Correct B. 1
C. 2
D. 4

Correct Answer: B

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Question 19
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital are fixed at 100 units each, what is the marginal product of capital?
A. 0.5
Correct B. 1
C. 2
D. 4

Correct Answer: B

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Question 20
A firm's demand function is given by Q = 100 - 2P. If the firm's marginal revenue is 50, what is the price elasticity of demand?
A. 0.5
Correct B. 1
C. 2
D. 4

Correct Answer: B

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Question 21
A company specializes in producing and marketing a single product. The production process involves several stages, including raw material procurement, manufacturing, packaging, and distribution. Which of the following is a characteristic of a sole trader?
Correct A. A sole trader is a business owned and managed by one person.
B. A sole trader is a business owned and managed by two or more people.
C. A sole trader is a business owned and managed by a partnership of people.
D. A sole trader is a business owned and managed by a company.

Correct Answer: A

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Question 22
A company uses a just-in-time inventory system to manage its stock levels. Which of the following is a benefit of this system?
A. Reduced storage costs
B. Improved customer satisfaction
C. Increased efficiency in production
Correct D. Reduced risk of stockouts

Correct Answer: D

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Question 23
A company is considering launching a new product in a foreign market. Which of the following is a factor that the company should consider when making this decision?
A. The company's current market share
B. The company's production costs
Correct C. The company's target market size
D. The company's marketing budget

Correct Answer: C

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Question 24
A company uses a warehouse management system to track its inventory levels. Which of the following is a benefit of this system?
Correct A. Improved accuracy of inventory levels
B. Reduced storage costs
C. Increased efficiency in production
D. Improved customer satisfaction

Correct Answer: A

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Question 25
A company is considering outsourcing its production to a foreign country. Which of the following is a factor that the company should consider when making this decision?
A. The company's current market share
B. The company's production costs
C. The company's target market size
Correct D. The company's labor costs

Correct Answer: D

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