POST UTME SKYLINE UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a production function given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor input, and K is the capital input. If the company wants to produce 100 units of output, and the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, what is the minimum cost of production?
A. ₦10,000
B. ₦12,500
C. ₦15,000
D. ₦17,500
Question 2
A company is considering two different production processes for a new product. Process A requires an initial investment of ₦1,000,000 and has a variable cost of ₦500 per unit. Process B requires an initial investment of ₦500,000 and has a variable cost of ₦750 per unit. If the company expects to sell 10,000 units of the product, which production process should it choose?
A. Process A
B. Process B
C. Either process is equally profitable
D. Neither process is profitable
Question 3
The process of transporting goods from one place to another involves
A. transportation costs
B. transportation modes
C. transportation infrastructure
D. all of the above
Question 4
The Consumer Protection Act of 1999 in Nigeria provides for the establishment of the National Consumer Protection Agency. What is the primary function of this agency?
A. To investigate complaints from consumers
B. To regulate the activities of businesses
C. To provide education and awareness to consumers
D. To establish standards for consumer products
Question 5
A consumer purchases a product with a warranty. What is the primary purpose of the warranty?
A. To provide a sense of security
B. To guarantee a certain level of quality
C. To protect the consumer from defects
D. To promote the product's features
Question 6
A company in Nigeria is considering investing in a foreign country. What is the primary factor that should be considered?
A. Political stability
B. Economic growth
C. Cultural differences
D. Language barriers
Question 7
A firm's marketing mix includes the
A. 4 Ps
B. 5 Ps
C. 6 Ps
D. 7 Ps
Question 8
The concept of comparative advantage suggests that a country should specialize in producing goods for which it has a
A. absolute advantage
B. comparative advantage
C. opportunity cost
D. law of diminishing marginal utility
Question 9
A company's stock control system involves a first-in-first-out (FIFO) inventory management policy. If the company has 100 units of a product with a cost of ₦500 per unit, and 50 units are sold, what is the total cost of the units sold?
A. ₦25,000
B. ₦25,000
C. ₦25,000
D. ₦25,000
Question 10
A company is considering two different production processes to manufacture a product. 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 selling price of the product is ₦120 per unit, which process should the company choose?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 11
A sole trader's business generates an average profit of ₦250,000 per annum. If the business is taxed at a rate of 25%, what is the sole trader's tax liability?
A. ₦62,500
B. ₦62,500
C. ₦62,500
D. ₦62,500
Question 12
A sole trader's business generates an average profit of ₦250,000 per annum. If the business is taxed at a rate of 25%, what is the sole trader's tax liability?
A. ₦62,500
B. ₦62,500
C. ₦62,500
D. ₦62,500
Question 13
A company's financial statements include the following accounts: assets, liabilities, equity, revenues, and expenses. Which of the following is a key principle of accounting?
A. Matching principle
B. Materiality principle
C. Consistency principle
D. Going concern principle
Question 14
A company's marketing strategy involves a 20% increase in advertising expenditure. If the initial advertising expenditure is ₦1,500,000, what is the new advertising expenditure?
A. ₦1,800,000
B. ₦1,600,000
C. ₦1,800,000
D. ₦1,600,000
Question 15
A life insurance policy has a premium of ₦50,000 per year and a death benefit of ₦1 million. If the policyholder dies after 5 years, what is the total payout to the beneficiary?
A. ₦2.5 million
B. ₦1.25 million
C. ₦1.5 million
D. ₦2 million

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