POST UTME SKYLINE UNIVERSITY 2018 Commerce | Objective

Are you preparing for POST UTME SKYLINE UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
In the context of consumer protection, what is the primary purpose of the Consumer Protection Act?
Correct A. To regulate business practices and protect consumers from unfair trade practices
B. To provide a framework for consumer education and awareness
C. To establish a consumer protection agency to handle complaints and disputes
D. To promote competition and fair trade practices among businesses

Correct Answer: A

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Question 2
A company has a warehouse with a capacity to store 1000 units of goods. If the company receives an order for 800 units, what is the maximum number of units that can be stored in the warehouse?
Correct A. 1000
B. 800
C. 1200
D. 1500

Correct Answer: A

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Question 3
A transport company has a fleet of 50 vehicles, with an average speed of 60 km/h. If the company operates for 8 hours a day, what is the total distance covered by the fleet in a day?
Correct A. 24000
B. 240000
C. 2400000
D. 24000000

Correct Answer: A

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Question 4
A company has a policy to insure its assets against loss or damage. If the company has an asset worth ₦10,000,000 and the insurance premium is 5% of the asset value, what is the insurance premium?
Correct A. ₦500,000
B. ₦1,000,000
C. ₦5,000,000
D. ₦10,000,000

Correct Answer: A

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Question 5
A diagram is shown below. If the diagram represents a warehouse with a capacity to store 1000 units of goods, and the company receives an order for 800 units, what is the maximum number of units that can be stored in the warehouse?
Correct A. 1000
B. 800
C. 1200
D. 1500

Correct Answer: A

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Question 6
In a perfectly competitive market, the law of diminishing marginal utility implies that the demand curve for a firm's product is
A. a vertical line
B. a horizontal line
Correct C. a downward-sloping curve
D. an upward-sloping curve

Correct Answer: C

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Question 7
A company's break-even point is the point at which its total revenue equals its total
A. fixed costs
B. variable costs
Correct C. total costs
D. net income

Correct Answer: C

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Question 8
A bank's cash reserve ratio is the percentage of its deposits that it is required to hold in
A. cash
B. loans
C. investments
Correct D. reserves

Correct Answer: D

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Question 9
A warehouse's inventory turnover ratio is the number of times its inventory is sold and replaced
Correct A. per year
B. per quarter
C. per month
D. per week

Correct Answer: A

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Question 10
An insurance company's premium income is the amount of money it receives from policyholders in
Correct A. premiums
B. claims
C. investments
D. reserves

Correct Answer: A

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Question 11
A company's sole trader has an annual income of ₦2,500,000 and an annual expenditure of ₦1,800,000. What is the sole trader's annual profit?
Correct A. ₦700,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000

Correct Answer: A

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Question 12
A firm imports goods worth 10,000 from a foreign country. If the exchange rate is 1 USD = 360 Naira, what is the value of the imported goods in Naira?
Correct A. ₦3,600,000
B. ₦3,600,000
C. ₦3,600,000
D. ₦3,600,000

Correct Answer: A

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Question 13
A company's production function is given by Q = 2L^2 + 5K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company uses 10 units of labor and 5 units of capital, what is the quantity produced?
A. 50
Correct B. 60
C. 70
D. 80

Correct Answer: B

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Question 14
A firm's revenue function is given by R(x) = 2x^2 + 5x, where x is the number of units sold. If the firm sells 10 units, what is the total revenue?
A. ₦150
Correct B. ₦200
C. ₦250
D. ₦300

Correct Answer: B

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Question 15
A company's cost function is given by C(x) = 2x^2 + 5x, where x is the number of units produced. If the company produces 10 units, what is the total cost?
A. ₦150
Correct B. ₦200
C. ₦250
D. ₦300

Correct Answer: B

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Question 16
A firm specializes in producing a single product, which is a result of the division of labor. This specialization leads to an increase in productivity, but it also increases the risk of
A. unemployment
B. underemployment
Correct C. inefficiency
D. inequality

Correct Answer: C

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Question 17
A company's marketing strategy involves creating a brand identity that is unique and memorable. This can be achieved through the use of
A. advertising
B. public relations
C. packaging
Correct D. branding

Correct Answer: D

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Question 18
A consumer protection law requires businesses to provide accurate information about their products. This is an example of
A. product liability
B. consumer rights
Correct C. false advertising
D. product safety

Correct Answer: C

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Question 19
A sole trader is a type of business ownership where one person owns and operates the business. This type of business is suitable for
Correct A. small businesses
B. large corporations
C. partnerships
D. limited companies

Correct Answer: A

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Question 20
A company's marketing mix involves the use of four Ps: product, price, promotion, and
A. place
B. people
C. process
Correct D. physical distribution

Correct Answer: D

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Question 21
A consumer protection agency has been established to regulate the activities of businesses in a particular industry. Which of the following is a key responsibility of this agency?
A. To ensure that businesses comply with all relevant laws and regulations
B. To provide training and education to consumers on how to make informed purchasing decisions
Correct C. To investigate and prosecute businesses that engage in unfair or deceptive practices
D. To promote competition among businesses in the industry

Correct Answer: C

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Question 22
A company is considering entering into a contract with a supplier in a foreign country. What type of risk is the company most likely to face?
A. Commercial risk
B. Currency risk
Correct C. Country risk
D. Credit risk

Correct Answer: C

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Question 23
A marketing manager is developing a campaign to promote a new product. Which of the following is a key consideration in the campaign?
Correct A. The target audience's demographics and psychographics
B. The product's features and benefits
C. The competition's marketing strategies
D. The product's price and packaging

Correct Answer: A

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Question 24
A company has purchased an insurance policy to protect against losses due to natural disasters. What type of insurance policy has the company purchased?
A. Liability insurance
Correct B. Property insurance
C. Business interruption insurance
D. Workers' compensation insurance

Correct Answer: B

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Question 25
A company is considering using a new transportation mode to deliver its products. Which of the following is a key consideration in the decision?
A. The cost of transportation
B. The speed of transportation
C. The reliability of transportation
Correct D. The environmental impact of transportation

Correct Answer: D

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