POST UTME SKYLINE UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm wants to increase output by 20% while keeping labor constant at 4 units, how much capital (H) must it increase?
A. 8 units
B. 16 units
C. 32 units
D. 64 units
Question 2
A firm is considering two different production processes. Process A requires an initial investment of ₦100,000 and has a variable cost of ₦50 per unit. Process B requires an initial investment of ₦150,000 and has a variable cost of ₦30 per unit. If the firm expects to produce 10,000 units, which process should it choose?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 3
A company is considering exporting its products to a new market. What are the potential benefits and drawbacks of exporting, and how might it impact the company's bottom line?
A. Exporting can increase revenue and expand the company's customer base, but it can also lead to increased costs and logistical challenges.
B. Exporting has no impact on the company's bottom line.
C. Exporting can decrease revenue and limit the company's customer base.
D. Exporting can increase costs and logistical challenges, but it can also lead to increased revenue and customer base.
Question 4
A company is considering exporting its products to a foreign market. What is the primary factor that determines the success of this venture?
A. Market demand
B. Competitor analysis
C. Transportation costs
D. Tariffs and trade agreements
Question 5
The concept of specialization in production is closely related to the idea of comparative advantage. Explain how specialization can lead to increased efficiency and productivity in a country's economy, using the example of Nigeria's textile industry.
A. Specialization leads to increased efficiency and productivity by allowing countries to focus on producing goods and services in which they have a comparative advantage.
B. Specialization leads to decreased efficiency and productivity by limiting the variety of goods and services produced in a country.
C. Specialization has no impact on efficiency and productivity in a country's economy.
D. Specialization leads to increased efficiency and productivity by allowing countries to produce a wider variety of goods and services.
Question 6
A consumer purchases a product online and receives a defective item. What is the consumer's primary recourse under the Consumer Protection Act?
A. To return the product and receive a full refund
B. To exchange the product for a new one
C. To seek compensation for damages and losses
D. To file a complaint with the relevant consumer protection agency
Question 7
A company is considering the implementation of a just-in-time (JIT) inventory system. What are the primary advantages of JIT?
A. Reduced inventory costs, improved supply chain visibility, and enhanced customer satisfaction
B. Increased inventory turnover, reduced stockouts, and improved material handling
C. Improved product quality, reduced waste, and increased productivity
D. Reduced shipping costs, improved order fulfillment, and increased sales
Question 8
A company's marketing strategy involves a 20% increase in advertising expenditure. If the current advertising expenditure is ₦1,500,000, what is the new advertising expenditure?
A. ₦1,800,000
B. ₦1,600,000
C. ₦1,400,000
D. ₦1,200,000
Question 9
A company is considering two different production methods for its product. Method A requires an initial investment of ₦1,500,000 and produces 10,000 units per month. Method B requires an initial investment of ₦2,000,000 and produces 15,000 units per month. If the selling price of each unit is ₦500, and the variable cost per unit is ₦200, which production method should the company choose?
A. Method A
B. Method B
C. Both methods are equally profitable
D. Neither method is profitable
Question 10
A warehouse has a storage capacity of 1000 units. The warehouse is currently storing 800 units. What is the percentage of storage capacity utilized?
A. 20%
B. 30%
C. 40%
D. 50%
Question 11
A consumer protection law requires businesses to provide clear and accurate product labeling. Which of the following is a potential consequence of non-compliance?
A. Financial penalties
B. Product recall
C. Loss of business reputation
D. All of the above
Question 12
A firm is considering two different marketing strategies. Strategy A involves a high level of advertising and a low level of sales promotion. Strategy B involves a low level of advertising and a high level of sales promotion. If the firm expects to sell 10,000 units, which strategy should it choose?
A. Strategy A
B. Strategy B
C. Both strategies are equally effective
D. Neither strategy is effective
Question 13
A sole trader's business is considered a separate legal entity from its owner. However, this separation is not absolute. Discuss the implications of this separation on the sole trader's personal liability.
A. The sole trader's personal liability is completely eliminated.
B. The sole trader's personal liability is reduced, but not eliminated.
C. The sole trader's personal liability is increased.
D. The sole trader's personal liability remains unchanged.
Question 14
A company has purchased an insurance policy to cover against business risks. What is the purpose of this policy?
A. To cover against business losses.
B. To cover against business risks.
C. To cover against personal liabilities.
D. To cover against employee injuries.
Question 15
What is the primary advantage of specialization in production?
A. Increased efficiency
B. Reduced costs
C. Improved quality
D. Enhanced innovation

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