POST UTME SKYLINE UNIVERSITY 2019 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 2019 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing
Correct A. Diminishing Returns
B. Increasing Opportunity Costs
C. Law of Supply
D. Marginal Revenue

Correct Answer: A

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Question 2
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. Selling Price

Correct Answer: C

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Question 3
The diagram below shows the demand curve for a perfectly competitive market. If the price of the good increases from ₦100 to ₦120, the quantity demanded will
A. Increase
Correct B. Decrease
C. Remain the same
D. Move to the left

Correct Answer: B

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Question 4
A sole trader's business is not a separate legal entity from its owner, but it can be sued for its
Correct A. Liabilities
B. Assets
C. Equity
D. Profits

Correct Answer: A

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Question 5
The diagram below shows a titration setup. If the burette contains 25cm³ of 0.1M NaOH and the initial pH of the solution is 3.5, the pH after the addition of 10cm³ of the NaOH solution will be
A. 4.5
Correct B. 5.5
C. 6.5
D. 7.5

Correct Answer: B

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Question 6
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. increase
Correct B. decrease
C. remain constant
D. move in the opposite direction

Correct Answer: B

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Question 7
A company's financial statements are audited annually by an independent auditor. What is the primary purpose of this audit?
Correct A. To ensure the company's financial statements are accurate and reliable
B. To identify areas for cost reduction
C. To provide tax advice
D. To provide investment advice

Correct Answer: A

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Question 8
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to increase its output by 20%, what percentage increase in labor and capital is required?
A. 10% increase in labor and 10% increase in capital
B. 15% increase in labor and 15% increase in capital
Correct C. 20% increase in labor and 20% increase in capital
D. 25% increase in labor and 25% increase in capital

Correct Answer: C

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Question 9
A life insurance policy has a premium of ₦10,000 per annum and a sum assured of ₦500,000. If the policyholder dies after 5 years, what is the benefit paid to the beneficiary?
A. ₦250,000
B. ₦300,000
C. ₦350,000
Correct D. ₦400,000

Correct Answer: D

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Question 10
A firm's cost function is given by C = 2L + 3K. If the firm wants to minimize its cost, what is the optimal combination of labor and capital?
A. L = 2, K = 1
B. L = 1, K = 2
Correct C. L = 2, K = 2
D. L = 1, K = 1

Correct Answer: C

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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
Correct B. The right to safety
C. The right to be informed
D. The right to be heard

Correct Answer: B

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Question 12
A company imports goods from a foreign country and sells them in Nigeria. What type of trade is this?
A. Export
B. Import
C. Domestic trade
Correct D. Foreign trade

Correct Answer: D

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Question 13
A person buys a product and it turns out to be defective. What type of risk is this?
A. Pure risk
B. Speculative risk
C. Uninsurable risk
Correct D. Insurable risk

Correct Answer: D

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Question 14
A company produces a product and sells it in the market. What type of production is this?
Correct A. Mass production
B. Batch production
C. Job production
D. Continuous production

Correct Answer: A

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Question 15
A person starts a business and wants to minimize costs. What type of specialization is this?
A. Horizontal specialization
Correct B. Vertical specialization
C. Product specialization
D. Market specialization

Correct Answer: B

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Question 16
A company imports goods from a foreign country and sells them in Nigeria. What type of trade is this?
A. Export
B. Import
C. Domestic trade
Correct D. Foreign trade

Correct Answer: D

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Question 17
A person buys a product and it turns out to be defective. What type of risk is this?
A. Pure risk
B. Speculative risk
C. Uninsurable risk
Correct D. Insurable risk

Correct Answer: D

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Question 18
A company produces a product and sells it in the market. What type of production is this?
Correct A. Mass production
B. Batch production
C. Job production
D. Continuous production

Correct Answer: A

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Question 19
A person starts a business and wants to minimize costs. What type of specialization is this?
A. Horizontal specialization
Correct B. Vertical specialization
C. Product specialization
D. Market specialization

Correct Answer: B

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Question 20
A company imports goods from a foreign country and sells them in Nigeria. What type of trade is this?
A. Export
B. Import
C. Domestic trade
Correct D. Foreign trade

Correct Answer: D

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Question 21
A person buys a product and it turns out to be defective. What type of risk is this?
A. Pure risk
B. Speculative risk
C. Uninsurable risk
D. Insurable risk

Correct Answer: VIEW ANSWER

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Question 22
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
Correct C. MRP < market wage
D. MRP is unrelated to market wage

Correct Answer: C

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Question 23
A company is considering two different marketing strategies: a high-low pricing strategy and a penetration pricing strategy. Which strategy is more likely to increase market share in the short run?
A. High-low pricing strategy
Correct B. Penetration pricing strategy
C. Both strategies are equally effective
D. Neither strategy is effective

Correct Answer: B

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Question 24
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
Correct B. Moderately likely
C. Unlikely
D. Very unlikely

Correct Answer: B

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Question 25
A company is considering a sole proprietorship as its business structure. What are the advantages of this structure?
A. Easy to set up and maintain
B. Limited liability
C. Tax benefits
Correct D. All of the above

Correct Answer: D

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