POST UTME SKYLINE UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is evaluating the feasibility of a new project. The project requires an initial investment of ₦500,000 and is expected to generate a revenue of ₦750,000 per year for 5 years. The company uses a discount rate of 10% to evaluate the project. What is the Net Present Value (NPV) of the project?
A. ₦125,000
B. ₦250,000
C. ₦375,000
D. ₦500,000
Question 2
A company produces a product and sells it in the market. What type of production is this?
A. Mass production
B. Batch production
C. Job production
D. Continuous production
Question 3
A firm is considering the expansion of its existing product line. The company has identified two potential new products, A and B, which have different production costs and selling prices. Product A has a production cost of ₦100 and a selling price of ₦200, while Product B has a production cost of ₦150 and a selling price of ₦300. Which of the following statements is true about the two products?
A. Product A has a higher profit margin than Product B
B. Product B has a higher profit margin than Product A
C. Product A and Product B have the same profit margin
D. The profit margins of Product A and Product B cannot be compared
Question 4
A sole trader has a business income of ₦200,000 and a business expense of ₦150,000. What is the net business income?
A. ₦25,000
B. ₦50,000
C. ₦75,000
D. ₦100,000
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm wants to produce 100 units of output, and it has 100 units of labor and 80 units of capital, what is the opportunity cost of using labor instead of capital?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 6
A firm is considering exporting its products to a foreign market. The firm has estimated the following costs and revenues associated with the export business:
A. ₦500,000
B. ₦750,000
C. ₦1,000,000
D. ₦1,250,000
Question 7
A company's sole trader is considering the purchase of a liability insurance policy to protect against potential losses. The policy has an annual premium of ₦50,000 and a deductible of ₦20,000. If the company has a 10% chance of incurring a loss of ₦100,000, what is the expected value of the insurance policy?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 8
A company's break-even point is the point at which its total revenue equals its total
A. Fixed Costs
B. Variable Costs
C. Total Costs
D. Selling Price
Question 9
In a perfectly competitive market, what is the relationship between the marginal revenue product (MRP) of a factor and the market wage?
A. MRP = market wage
B. MRP > market wage
C. MRP < market wage
D. MRP is unrelated to market wage
Question 10
A firm is considering the introduction of a new product line. The product requires a significant investment in new equipment and training for employees. However, the company expects a substantial increase in revenue from the sale of the new product. Which of the following financial metrics would be most relevant in evaluating the decision to introduce the new product line?
A. Return on Investment (ROI)
B. Break-Even Point (BEP)
C. Payback Period (PBP)
D. Net Present Value (NPV)
Question 11
The Consumer Protection Act of 1999 provides for the protection of consumers in Nigeria. Which of the following is a fundamental principle of consumer protection?
A. The right to choose
B. The right to safety
C. The right to be informed
D. The right to be heard
Question 12
A person starts a business and wants to minimize costs. What type of specialization is this?
A. Horizontal specialization
B. Vertical specialization
C. Product specialization
D. Market specialization
Question 13
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing
A. Diminishing Returns
B. Increasing Opportunity Costs
C. Law of Supply
D. Marginal Revenue
Question 14
A company produces a product and sells it in the market. What type of production is this?
A. Mass production
B. Batch production
C. Job production
D. Continuous production
Question 15
A bank is considering a loan to a small business. The business has a credit score of 600 and a debt-to-income ratio of 30%. What is the likelihood of the loan being approved?
A. Highly likely
B. Moderately likely
C. Unlikely
D. Very unlikely

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