POST UTME SKYLINE UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer protection agency is investigating a complaint about a company's advertising practices. The company has been accused of making false claims about the benefits of its product. Which of the following is a legal requirement for advertising in Nigeria?
A. The company must provide evidence to support its claims
B. The company must disclose any potential conflicts of interest
C. The company must comply with the Advertising Standards Authority's code of practice
D. The company must obtain prior approval from the National Advertising Council
Question 2
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
B. 20 units
C. 30 units
D. 40 units
Question 3
The Federal Competition and Consumer Protection Commission (FCCPC) has the power to investigate and prosecute any person or business that contravenes the Federal Competition and Consumer Protection Act 2018. Which of the following is a consequence of contravening the Act?
A. Imprisonment for up to 10 years
B. Fines of up to ₦10 million
C. Both imprisonment and fines
D. Neither imprisonment nor fines
Question 4
A company is considering a new marketing strategy that involves partnering with a popular social media influencer. The influencer has a large following and is known for promoting products that align with the company's brand values. However, the influencer's fees are high, and the company is unsure if the investment will yield a positive return. What type of risk is the company taking on by partnering with the influencer?
A. Financial risk
B. Reputational risk
C. Operational risk
D. Strategic risk
Question 5
In a perfectly competitive market, the demand curve for a firm's product is its
A. marginal revenue curve
B. marginal cost curve
C. average revenue curve
D. average cost curve
Question 6
A bank is considering the introduction of a new credit card product. The product will have a 20% annual interest rate and a 2% annual fee. The bank expects to attract 10,000 new customers in the first year, with an average credit limit of ₦50,000. What is the total revenue generated by the bank from interest and fees in the first year?
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000
Question 7
A sole trader is considering expanding their business by hiring employees. However, they are concerned about the potential increase in costs and the impact on their personal income. What type of cost is the sole trader likely to incur by hiring employees?
A. Fixed cost
B. Variable cost
C. Semi-variable cost
D. Sunk cost
Question 8
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.
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.
Question 9
A company is considering the purchase of a new warehouse. The warehouse has a capacity of 10,000 square meters and a rental fee of ₦250,000 per month. The company's current warehouse has a capacity of 5,000 square meters and a rental fee of ₦150,000 per month. If the company expects to increase its storage needs by 20% per annum, what is the minimum number of years it will take for the company to fill the new warehouse?
A. 5 years
B. 6 years
C. 7 years
D. 8 years
Question 10
A sole trader has a business income of ₦500,000 and expenses of ₦300,000. What is the profit made by the sole trader?
A. ₦200,000
B. ₦150,000
C. ₦100,000
D. ₦50,000
Question 11
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
C. To ensure timely delivery of goods
D. To reduce labor costs
Question 12
A bank is considering a new loan product that involves offering a variable interest rate to customers. The bank has determined that the interest rate will be based on the prime lending rate plus a margin of 2%. However, the bank is concerned about the potential risks associated with the loan product. What type of risk is the bank taking on by offering the variable interest rate loan product?
A. Credit risk
B. Liquidity risk
C. Market risk
D. Operational risk
Question 13
A consumer in Nigeria purchases a product from a company that has not disclosed the presence of a hazardous substance in the product. Which of the following is a consequence of this action?
A. The consumer can return the product for a refund
B. The consumer can sue the company for damages
C. The product is confiscated by the government
D. The consumer can be fined by the FCCPC
Question 14
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
B. 20
C. 30
D. 40
Question 15
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
C. 15
D. 20

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