POST UTME SKYLINE UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader's business is considered a separate legal entity from its owner. However, the owner's personal assets are still at risk in case of business debts. What is the name of this type of business structure?
A. Sole Proprietorship
B. Partnership
C. Limited Liability Company
D. Cooperative
Question 2
A firm specializes in producing two goods, A and B. The production of good A requires 2 units of labor and 1 unit of capital, while the production of good B requires 1 unit of labor and 2 units of capital. If the firm has 10 units of labor and 8 units of capital, what is the opportunity cost of producing 5 units of good A?
A. 2 units of good B
B. 3 units of good B
C. 4 units of good B
D. 5 units of good B
Question 3
A bank offers a 5-year fixed deposit with an interest rate of 10% per annum compounded annually. If a customer deposits ₦100,000, what will be the future value of the investment after 5 years?
A. ₦163,918.62
B. ₦164,918.62
C. ₦165,918.62
D. ₦166,918.62
Question 4
A consumer purchases a product for ₦1,000 and sells it for ₦1,200. What is the profit percentage if the consumer also has to pay a sales tax of 10%?
A. 15%
B. 20%
C. 25%
D. 30%
Question 5
In a just-in-time (JIT) inventory system, what is the primary goal of the reorder point?
A. To minimize inventory costs
B. To maximize inventory turnover
C. To reduce lead time
D. To minimize stockouts
Question 6
A firm is considering the use of a new production technology. The new technology has a higher fixed cost but a lower variable cost compared to the existing technology. What is the likely outcome for the firm's production level?
A. Increase in production level
B. Decrease in production level
C. No change in production level
D. Increase in price
Question 7
The concept of 'agency' in consumer protection law refers to the ability of consumers to act collectively to influence market outcomes. Which of the following best describes the primary mechanism by which consumers exercise this agency?
A. Consumer cooperatives
B. Consumer advocacy groups
C. Class actions
D. Regulatory agencies
Question 8
A firm's marginal revenue function is given by MR = 4Q. If the firm produces 3 units of output, what is its marginal revenue?
A. 6
B. 12
C. 18
D. 24
Question 9
A sole trader is considering the purchase of a new business. The purchase price is ₦500,000, and the seller is offering a 5-year warranty on the business. The sole trader expects to earn an annual profit of ₦100,000 for the next 5 years. What is the minimum amount the sole trader should be willing to pay for the business?
A. ₦400,000
B. ₦450,000
C. ₦500,000
D. ₦550,000
Question 10
A company's articles of association may contain provisions that restrict the transfer of shares. What is the purpose of such provisions?
A. To prevent the concentration of ownership
B. To ensure that shares are transferred to a specific individual or group
C. To allow for the easy transfer of shares
D. To increase the company's capital
Question 11
A company is considering expanding its operations to a new market. Which of the following is a key factor to consider when evaluating the feasibility of this expansion?
A. Market size
B. Competitor analysis
C. Regulatory environment
D. Supply chain logistics
Question 12
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the firm wants to produce 16 units of output, and it has 4 units of labor and 9 units of capital, what is the opportunity cost of labor?
A. 1 unit of capital
B. 2 units of capital
C. 3 units of capital
D. 4 units of capital
Question 13
A company has a warehouse with a capacity of 10,000 units. The average daily demand is 200 units, and the lead time is 5 days. What is the Economic Order Quantity (EOQ) if the ordering cost is ₦50 and the holding cost is ₦2 per unit per day?
A. ₦1,000
B. ₦1,500
C. ₦2,000
D. ₦2,500
Question 14
A company has a warehouse with a capacity of 10,000 units. The average daily demand is 200 units, and the lead time is 5 days. What is the safety stock if the standard deviation of demand is 50 units and the service level is 95%?
A. 100 units
B. 200 units
C. 300 units
D. 400 units
Question 15
A company is considering two marketing strategies: one that focuses on social media advertising and another that focuses on influencer marketing. If the company expects to reach 10,000 potential customers through social media advertising and 5,000 potential customers through influencer marketing, and if the cost of social media advertising is ₦500 per customer and the cost of influencer marketing is ₦1,000 per customer, what is the total cost of reaching 15,000 potential customers?
A. ₦12,500
B. ₦15,000
C. ₦17,500
D. ₦20,000

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: