CIMA CIMAPRA17-BA1-1 Exam Practice Test Instant Access

Question 1

Which TWO of the following would be objectives for internal stakeholders in a profit-seeking organisation?

Aimproving the working condition and pay levels for the employees

BMaximising shareholder wealth

CMeeting the legally required environmental standards in the industry

DRaising the level of dividends paid out

EIncreasing the remuneration packages of the company directors

Answer : A, E

Question 2

Which THREE of the following are objectives of corporate governance?

ATo ensure that managers have attractive compensation packages

BTo implement clear career progression routes for employees

CTo ensure that customers' needs are addressed

DTo ensure that a company is run in a legal and ethical manner

ETo implement incentives for managers to pursue long term financial sustainability

FTo increase transparency in company reporting

Answer : D, E, F

Question 3

industrial action is more likely to occur within a large organisation than a small organisation, due to senior management becoming re managers becoming complacent, as well as shop floor hostility. The effect of this will be an increasing average cost as production

The statement above is most closely describing an example of which of the following?

AExternal diseconomy of scale.

BInternal diseconomy of scale

CInternal economy of scale

DExternal economy of scale

Answer : B

Question 4

A government issues a security which promises to pay $100 per year indefinitely. What is it worth if the required rate of return is..

A$2, 400

B$1, 400

C$2, 500

D$4, 000

Answer : C

Question 5

The following table provides the frequency distribution and cumulative frequencies of the cost of monthly rent for 120 apartments. What is the percentage of apartments whose monthly rent is less than $510?

A21%

B50%

C25%

D41%

Answer : D

Question 6

Which TWO of the following policy actions might be available to a government that wishes to reduce a deficit in the balance of payments?

ADevaluate the exchange rate in order to increase exports.

BIncrease the money supply in order to stimulate domestic consumption.

CAppreciate the exchange rate in order to reduce imports.

DReduce the interest rate in order to stimulate investment.

EIntroduce tariffs on imported goods in order to favour domestic producers.

Answer : A, D

Question 7

Which of the following would tend to make the market supply of a good price inelastic?

AThere are few barriers to entry into the industry.

BMany firms in the industry have unused production capacity.

CMost firms in the industry have high stock levels of finished goods.

DNewly employed workers in the industry require high levels of initial training.

Answer : D

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