POST UTME SKYLINE UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's willingness to pay for a product is influenced by the product's
A. price
B. quality
C. brand reputation
D. all of the above
Question 2
The concept of 'opportunity cost' in economics refers to the value of the next best alternative foregone as a result of making a decision. Which of the following is an example of opportunity cost?
A. The cost of producing a good
B. The value of a good that is not produced
C. The cost of a good that is not consumed
D. The value of a good that is consumed
Question 3
A firm's inventory management system involves the use of a just-in-time (JIT) inventory system to minimize inventory levels and costs. Which of the following is a benefit of using such a system?
A. Improved cash flow and liquidity
B. Enhanced customer service and satisfaction
C. Reduced inventory levels and costs
D. Increased efficiency and productivity
Question 4
A company's financial statement shows a net income of ₦500,000. If its total assets are ₦2,000,000 and its total liabilities are ₦1,000,000, what is its return on equity?
A. 25%
B. 50%
C. 75%
D. 100%
Question 5
A company's marketing strategy involves a mix of advertising, sales promotion, and public relations. Which of the following is NOT a characteristic of a successful marketing strategy?
A. It must be consistent with the company's overall business objectives.
B. It must be tailored to the specific needs of the target market.
C. It must be implemented without any budget allocation.
D. It must be evaluated regularly to ensure its effectiveness.
Question 6
A manufacturing firm produces two products, A and B, using two machines, M1 and M2. The production process involves the following costs: 100 for machine M1 and 200 for machine M2. The firm produces 100 units of product A and 50 units of product B. Using the data given, calculate the total cost of production.
A. 15,000
B. 20,000
C. 25,000
D. 30,000
Question 7
In a perfectly competitive market, the demand curve for a firm's product is its
A. marginal revenue curve
B. average revenue curve
C. marginal cost curve
D. average cost curve
Question 8
A sole trader, Mr. A, has an annual income of ₦1,500,000. He has a business expense of ₦200,000 and a personal expense of ₦150,000. If he wants to save 20% of his income, how much will he save?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 9
A firm is considering investing in a new project that has a net present value (NPV) of ₦1,500,000. The cost of capital is 10% per annum. What is the internal rate of return (IRR) of the project?
A. 12%
B. 15%
C. 18%
D. 20%
Question 10
A firm is considering a new product launch. The product has a 30% chance of success, and if it succeeds, it will generate ₦500,000 in revenue. However, if it fails, it will incur a loss of ₦200,000. What is the expected value of the product launch?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 11
A bank offers a loan of ₦1,000,000 at an interest rate of 12% per annum. If the loan is repaid after 2 years, how much will the borrower pay in total?
A. ₦1,120,000
B. ₦1,240,000
C. ₦1,360,000
D. ₦1,480,000
Question 12
A firm is considering two investment projects, A and B. Project A has a 20% chance of success and will generate ₦100,000 if it succeeds, while project B has a 30% chance of success and will generate ₦120,000 if it succeeds. What is the expected value of the two projects?
A. ₦24,000
B. ₦28,000
C. ₦32,000
D. ₦36,000
Question 13
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. increase
B. decrease
C. remain constant
D. shift to the left
Question 14
A firm's cost function is given by C = 2L + 3K. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm wants to minimize its cost, what is the optimal value of L?
A. 10
B. 20
C. 30
D. 40
Question 15
A consumer has the following utility function: U = 2x + 3y. If the prices of x and y are ₦50 and ₦75 respectively, and if the consumer's income is ₦1000, what is the optimal bundle of x and y?
A. x = 10, y = 5
B. x = 15, y = 3
C. x = 20, y = 2
D. x = 25, y = 1

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