BA1 Fundamentals of Business Economics CIMAPRO17-BA1-X1-ENG Dumps Questions

1. Which of the following will NOT affect the price elasticity of supply?

2. Which of the following is a primary objective of a not-for-profit organization?

3. Quantitative easing, the purchase of government or private securities by the central banks from investors, is an example of:

4. A commercial airline uses its database to develop the following regression model to predict the cost of a flight Y (in dollars) by number of passengers:

Y = 1,570 + 40.7x

Which of the following statements is correct in relation to the airline?

5. Which of the following is correct in relation to businesses?

In order to maximize shareholder wealth, the primary objective of a business can be reflected in:

(1) higher investment

(2) higher sales revenue

(3) higher share prices

(4) higher dividend payments.

6. FILL BLANK

A business analyst has computed a trend regression for the sales of company X. The following table reports the ratios between the actual quarterly sales of company X and the calculated trend, for a period of four years.

What is the seasonal component in the fourth quarter? Give your answer to three decimal places.

7. A business has a contractual requirement to pay a sum of $6m in a foreign currency in 12 months time. It takes out a forward foreign exchange contract for this sum.

This is an example of:

8. Which THREE of the following businesses are more likely to fare better during a recession? (Choose three.)

9. HOTSPOT

The economy of Country V is initially in equilibrium at a level of national income and employment denoted by Y at price level denoted by P1.

If there is an increase in aggregate demand, indicate on the graph below the new equilibrium point in the economy.

10. A trade agreement that removes all import tariffs between member countries, sets up common external tariffs against non-members, but does not advance toward economic integration is called:

11. A clothes retailer has estimated a linear trend equation including trend, seasonal and cyclical components to forecast its sales for the next four quarters.

Which of the following factors would generate actual sales figures that are likely to differ markedly from the forecast?

12. In recent years, consumer groups have become more vocal in calling for the boycott of producers whose suppliers do not comply with international regulations on workplace safety and child labour.

A fashion company that outsources its production to low labour cost countries should include this phenomenon in which part of their PESTEL framework?

13. Company A owns a factory in a foreign country.

Which of the following types of exchange rate risk is company A most likely to experience in relation to the value of the factory?

14. FILL BLANK

An estimation regression is developed to test the linear relationship between the size of student population at a university and monthly sales of a nearby bookshop. The correlation coefficient is equal to 0.9.

Calculate the coefficient of determination to two decimal places:

15. A manufacturing company is considering a new investment project.

Which TWO of the following would reduce the net present value of the investment to the business? (Choose two.)