POST UTME SKYLINE UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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
D. ₦400,000
Question 2
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
B. Moderately likely
C. Unlikely
D. Very unlikely
Question 3
A person starts a business and wants to minimize costs. What type of specialization is this?
A. Horizontal specialization
B. Vertical specialization
C. Product specialization
D. Market specialization
Question 4
A firm is considering the expansion of its existing product line. The company has identified two potential new products, A and B, which have different production costs and selling prices. Product A has a production cost of ₦100 and a selling price of ₦200, while Product B has a production cost of ₦150 and a selling price of ₦300. Which of the following statements is true about the two products?
A. Product A has a higher profit margin than Product B
B. Product B has a higher profit margin than Product A
C. Product A and Product B have the same profit margin
D. The profit margins of Product A and Product B cannot be compared
Question 5
A person starts a business and wants to minimize costs. What type of specialization is this?
A. Horizontal specialization
B. Vertical specialization
C. Product specialization
D. Market specialization
Question 6
A company's financial statements are audited annually by an independent auditor. What is the primary purpose of this audit?
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
Question 7
A firm is considering the introduction of a new product line. The product requires a significant investment in new equipment and training for employees. However, the company expects a substantial increase in revenue from the sale of the new product. Which of the following financial metrics would be most relevant in evaluating the decision to introduce the new product line?
A. Return on Investment (ROI)
B. Break-Even Point (BEP)
C. Payback Period (PBP)
D. Net Present Value (NPV)
Question 8
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
B. Decrease
C. Remain the same
D. Move to the left
Question 9
A firm produces two goods, X and Y, using two inputs, labor (L) and capital (K). The production function for good X is given by Q_X = 2L^0.4K^0.6, while that for good Y is Q_Y = 3L^0.7K^0.3. If the firm has 100 units of labor and 80 units of capital, and it wants to maximize its total output, what should be the optimal allocation of labor and capital between the two goods?
A. Allocate 60 units of labor and 40 units of capital to good X, and 40 units of labor and 60 units of capital to good Y.
B. Allocate 80 units of labor and 20 units of capital to good X, and 20 units of labor and 80 units of capital to good Y.
C. Allocate 50 units of labor and 50 units of capital to good X, and 50 units of labor and 50 units of capital to good Y.
D. Allocate 30 units of labor and 70 units of capital to good X, and 70 units of labor and 30 units of capital to good Y.
Question 10
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
Question 11
A bank offers a 5-year fixed deposit account with an interest rate of 8% per annum compounded annually. If a customer deposits ₦100,000 at the beginning of the first year, what will be the future value of the investment at the end of the fifth year?
A. ₦163,922.49
B. ₦164,922.49
C. ₦165,922.49
D. ₦166,922.49
Question 12
A sole trader has a business income of ₦200,000 and a business expense of ₦150,000. What is the net business income?
A. ₦25,000
B. ₦50,000
C. ₦75,000
D. ₦100,000
Question 13
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
D. Foreign trade
Question 14
A company uses a marketing mix of 4P's (product, price, promotion, and place) to promote its new product. If the company allocates 30% of its marketing budget to product development, 20% to pricing, 20% to promotion, and 30% to distribution, what is the total marketing budget?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 15
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

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