CIMA CIMAPRA17-BA1-1 Exam Questions Instant Access

Question 1

Which ONE of the following statements about the 'divorce of control from ownership' is true?

AIf an organization is controlled by managers, profit will no longer be an objective for business organizations

BIssues of corporate governance would not arise if shareholders had effective control of business organizations

CRemuneration schemes for directors which are linked to share prices encourage the divorce of control from ownership

DManagerial objectives are likely to be related to the size and growth of the organization rather than shareholder value

Answer : D

Question 2

Which of the following provides a definition of a free good?

ANo charge is made for it by its supplier

BIts provision is financed by taxation

CIt is produced from renewable resources

DIt is available at zero cost of production in unlimited quantities

Answer : D

Question 3

Identify which of the following features does not distinguish redeemable debt apart from equity:

AIt has a face value which shows its value at redemption

BIt will pay a regular set sum of interest

CIt will have a maturity date when it will mature

DIt will never be traded on an investment market

Answer : D

Question 4

Which global financial institution is responsible for providing stabilization funding to assist developed and developing countries with short term borrowing needs and needs for foreign currency?

AThe IMF

BThe World Bank

CThe World Trade Organization

DThe G20

Answer : A

Question 5

All the following statements relate to an increase in government spending which is not accompanied by an increase in taxation. Which statement is NOT correct?

AThe government's budget deficit will increase

BThe aggregate demand curve will shift to the right

CThe initial change in government spending may lead to a larger impact upon the economy

DAn expansionary monetary policy is being pursued

Answer : D

Question 6

All of the following items would appear as a credit on the current account of a country's balance of payments accounts except which one?

AInterest payments on financial assets held overseas.

BExports of manufactured goods.

COutflows of capital.

DExpenditure by visiting foreign tourists.

Answer : C

Question 7

Which ONE of the following conditions would lead to instability over time in the incomes of producers of primary products?

ABoth demand and supply tend to be price inelastic

BLarge shifts in demand combined with supply that is price inelastic

CLarge supply shifts under the impact of unstable weather conditions

DBoth demand and supply tend to be price elastic

Answer : B

CIMA BA1 - Fundamentals of Business Economics CIMAPRA17-BA1-1 Exam Questions