POST UTME SKYLINE UNIVERSITY 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A bank offers a 5-year fixed deposit account with a principal amount of ₦100,000 and an interest rate of 10% per annum compounded annually. What is the future value of the investment after 5 years?
A. ₦163,918.19
B. ₦164,918.19
C. ₦165,918.19
D. ₦166,918.19
Question 2
A bank offers a loan of ₦1 million at an interest rate of 12% per annum compounded annually. If the loan is repaid after 2 years, what is the total amount paid by the borrower?
A. ₦1,144,000
B. ₦1,200,000
C. ₦1,256,000
D. ₦1,312,000
Question 3
A firm is considering the introduction of a new product. The product has a market size of 100,000 units and a market growth rate of 10% per annum. If the firm wants to capture 20% of the market share in the first year, how many units should it produce?
A. 20,000
B. 25,000
C. 30,000
D. 35,000
Question 4
A company's sole trader has a business income of ₦1,500,000 and expenses of ₦800,000. What is the profit before tax?
A. ₦700,000
B. ₦600,000
C. ₦800,000
D. ₦1,000,000
Question 5
A consumer has a budget constraint of 100 and a utility function given by U = 2x + 3y. If x = 10 and y = 5, what is the utility?
A. 25
B. 30
C. 35
D. 40
Question 6
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.
B. 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, but Country A has a lower opportunity cost of producing cloth.
C. 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, but Country B has a lower opportunity cost of producing wheat.
D. 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, but Country A has a lower opportunity cost of producing both wheat and cloth.
Question 7
A sole trader has a business income of ₦500,000 and a business expense of ₦200,000. What is the sole trader's business profit?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 8
A life insurance policy has a premium of ₦50,000 per annum, and the policyholder dies after 5 years. The sum assured is ₦500,000, and the policy has a surrender value of ₦100,000. What is the benefit paid to the policyholder's beneficiary?
A. ₦400,000
B. ₦450,000
C. ₦500,000
D. ₦550,000
Question 9
A bank offers a credit card with an annual interest rate of 18%. What is the effective interest rate if the cardholder pays the minimum payment of 2% of the outstanding balance each month?
A. 20%
B. 22%
C. 24%
D. 26%
Question 10
A company is considering two marketing strategies: a 10% discount on all products or a free gift with every purchase. Which of the following is a correct example of a marketing strategy?
A. A 10% discount on all products
B. A free gift with every purchase
C. A 10% discount on all products and a free gift with every purchase
D. Neither of the above
Question 11
In a just-in-time inventory system, what is the primary goal of the reorder point?
A. To minimize inventory costs
B. To maximize inventory turnover
C. To ensure that stockouts are minimized
D. To optimize the use of warehouse space
Question 12
A company's marketing strategy involves creating a viral video campaign. What is the primary goal of this campaign?
A. To increase brand awareness
B. To generate leads
C. To drive sales
D. To build customer loyalty
Question 13
A consumer has a budget of ₦10,000 and is considering purchasing a product that costs ₦8,000. If the consumer has already spent ₦2,000 on other products, what is the consumer's remaining budget?
A. ₦8,000
B. ₦10,000
C. ₦12,000
D. ₦14,000
Question 14
A company issues a prospectus to raise capital. What is the primary responsibility of the company's directors in this context?
A. To ensure the prospectus is accurate and complete
B. To obtain approval from the regulatory authority
C. To disclose all material information
D. To minimize the risk of liability
Question 15
What is the primary function of the Central Bank of Nigeria (CBN) in the Nigerian banking system?
A. To regulate and supervise commercial banks
B. To provide loans to commercial banks
C. To manage the country's foreign exchange
D. To print and distribute currency

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