CIMAPRA17-BA1-1 BA1 - Fundamentals of Business Economics Exam Practice Test

Based on a trade balance between Country A and Country B over a ten year period, the underlying trend of the trade balance is represent equation

-114.027 -1.47x

where x is the time period expressed in years.

Assuming an additive forecasting model, with a seasonal factor of 82 6, then the forecast for year 2016, in whole units is:

Which of the following is an external stakeholder of an organisation?

A business based in Country

A. agrees to buy a software package from a company based in Country O tor 20.000 Country O dollars 12 months time. At the time of the contract the exchange rate was 1 O dollar (0$) to 1.5 Country A pounds (A). When payment ism Rate is O$1 to A1 4.

What is the exchange rate gain (+) or loss (-) made by the Country A business?

Give your answer to a whole number.

A national study ranks the reputation of the top four internet companies and the likelihood of investors buying their shares on the follow the highest ranking and four the lowest.

Calculate the Spearman's rank correlation coefficient between reputation and probable purchase

The use of hedging is to reduce or eliminate exposure to which of the following?

1. Credit risk

2. Economic risk

3. Transaction risk

4. Transition risk.

A bank charges a 4% quarterly interest rate on a personal loan of $10,000

What is the effective annual amount of interest that the borrower pays on this loan? Give your answer to the nearest whole dollar.

Based on historical time series data, a chemicals company uses sales ($million) as the y variable and time (year) as the x variable and equation.

y = - 3935 47 + 2 02x

Using the equation, what is the company's predicted sales for the year 2020? Give your answer to the nearest million.