POST UTME SKYLINE UNIVERSITY 2025 Commerce | Objective

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Question 1
In a just-in-time inventory system, what is the primary goal of the warehouse manager?
A. To minimize inventory costs
B. To maximize storage capacity
Correct C. To ensure timely delivery of goods
D. To reduce labor costs

Correct Answer: C

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Question 2
A company has a warehouse with a capacity of 10,000 units. If the current inventory level is 8,000 units and the daily demand is 200 units, what is the reorder point?
A. 6,000 units
Correct B. 7,000 units
C. 8,000 units
D. 9,000 units

Correct Answer: B

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Question 3
A business owner wants to purchase a liability insurance policy that covers up to ₦5,000,000. If the premium is 10% of the coverage amount, how much will the owner pay annually?
Correct A. ₦500,000
B. ₦500,000
C. ₦500,000
D. ₦500,000

Correct Answer: A

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Question 4
A company exports goods worth ₦10,000,000 to a foreign country. If the exchange rate is 1 USD = ₦500, how much is the export worth in USD?
A. ₦20,000,000
Correct B. ₦10,000,000
C. ₦5,000,000
D. ₦2,500,000

Correct Answer: B

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Question 5
A sole trader has a business income of ₦1,000,000 and expenses of ₦800,000. What is the profit before tax?
A. ₦100,000
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

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Question 6
In a perfectly competitive market, the demand curve for a firm's product is its
Correct A. marginal revenue curve
B. marginal cost curve
C. average revenue curve
D. average cost curve

Correct Answer: A

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Question 7
A firm's revenue is maximized when its marginal revenue equals its
A. marginal cost
B. average cost
Correct C. marginal revenue
D. average revenue

Correct Answer: C

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Question 8
The diagram below shows the demand and supply curves for a perfectly competitive market. If the price is set at ₦100, what is the quantity supplied?
A. 10 units
Correct B. 20 units
C. 30 units
D. 40 units

Correct Answer: B

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Question 9
A firm's marginal revenue is ₦50 per unit, and its marginal cost is ₦30 per unit. What is the profit-maximizing quantity?
A. 5 units
Correct B. 10 units
C. 15 units
D. 20 units

Correct Answer: B

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Question 10
The diagram below shows the production possibilities frontier for two goods, X and Y. If the economy is currently producing 10 units of X and 20 units of Y, what is the opportunity cost of producing one more unit of X?
A. 2 units of Y
Correct B. 4 units of Y
C. 6 units of Y
D. 8 units of Y

Correct Answer: B

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Question 11
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 compared to other countries. 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.
Correct B. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 150 units of cloth.
C. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 150 units of wheat and 50 units of cloth.
D. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 150 units of wheat and 100 units of cloth.

Correct Answer: B

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Question 12
A firm's production function is given by Q = 2L^0.5 + 3K^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, how much labor should it hire?
A. 10
Correct B. 20
C. 30
D. 40

Correct Answer: B

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Question 13
A company is considering two marketing strategies: Strategy A, which involves a 10% increase in advertising expenditure, and Strategy B, which involves a 20% increase in sales force. Which strategy is more likely to increase sales?
A. Strategy A
Correct B. Strategy B
C. Both strategies are equally effective
D. Neither strategy is effective

Correct Answer: B

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Question 14
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 wants to maximize its revenue, what price should it charge?
A. 20
Correct B. 30
C. 40
D. 50

Correct Answer: B

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Question 15
A company is considering two production processes: Process A, which involves a fixed cost of ₦100,000 and a variable cost of ₦50 per unit, and Process B, which involves a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. Which process is more profitable?
Correct A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable

Correct Answer: A

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Question 16
A company's marketing strategy involves a mix of advertising and sales promotions. If the company allocates 30% of its marketing budget to advertising and 40% to sales promotions, what percentage of the budget is allocated to other marketing activities?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 17
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm increases labor by 20% and capital by 15%, what is the percentage change in output?
A. -5%
B. 0%
Correct C. 5%
D. 10%

Correct Answer: C

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Question 18
A bank's balance sheet is given by Assets = Liabilities + Equity. If the bank's assets increase by 10% and its liabilities decrease by 5%, what is the percentage change in equity?
A. -5%
Correct B. 0%
C. 5%
D. 10%

Correct Answer: B

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Question 19
A company's marketing mix involves a product with a high level of quality, a price that is slightly above average, a promotion that is focused on social media, and a distribution channel that is primarily online. Which of the following is a characteristic of this company's marketing strategy?
A. The company is targeting a mass market.
Correct B. The company is targeting a niche market.
C. The company is using a push strategy.
D. The company is using a pull strategy.

Correct Answer: B

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Question 20
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm increases labor by 20% and capital by 15%, what is the new level of output?
A. 10
B. 12
Correct C. 15
D. 20

Correct Answer: C

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Question 21
The Consumer Protection Act of 1999 in Nigeria provides for the establishment of the Consumer Protection Council. What is the primary function of the Consumer Protection Council?
A. To promote consumer awareness and education
Correct B. To investigate consumer complaints and prosecute offenders
C. To establish standards for consumer products and services
D. To provide compensation to consumers for losses incurred

Correct Answer: B

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Question 22
A company has a warehouse with a capacity to store 10,000 units of goods. If the company receives 8,000 units of goods, what is the percentage of the warehouse's capacity that is utilized?
Correct A. 80%
B. 70%
C. 60%
D. 50%

Correct Answer: A

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Question 23
A sole trader has a business income of ₦500,000 and expenses of ₦300,000. What is the profit made by the sole trader?
Correct A. ₦200,000
B. ₦150,000
C. ₦100,000
D. ₦50,000

Correct Answer: A

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Question 24
A company has a bank account with a balance of ₦1,000,000. If the company withdraws ₦500,000, what is the new balance in the bank account?
A. ₦500,000
Correct B. ₦750,000
C. ₦1,000,000
D. ₦1,500,000

Correct Answer: B

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Question 25
A production company has a production capacity of 10,000 units per day. If the company operates for 20 days, what is the total production?
Correct A. 200,000 units
B. 150,000 units
C. 100,000 units
D. 50,000 units

Correct Answer: A

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