CIMA CIMAPRA17-BA1-1 Exam Practice Test Instant Access

Question 1

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:

A-113968

B-113868

C-113768

D-113668

Answer : A

Question 2

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 3

Which THREE of the following does globalisation offer to businesses?

AThe opportunity to participate in building international alliances.

BThe opportunity to comply with national standards

CThe benefits of protectionist measures

DThe opportunity to lobby the government for less regulation

EBy opening up new markets, the opportunity to increase sales

FThe opportunity to relocate production in countries where the labor cost is lower

Answer : A, E, F

Question 4

A hairdressing salon can either invest in

1. New. more comfortable chairs at a cost of $5,000

2. New shop windows at a cost of $4,000

Over the next five years. Investment 1 will generate an additional amount of profit whose present value is $6,000. while Investment 2 additional amount of profit whose present value is $5,500

What is the net present value of the best project? Give your answer to the nearest whole dollar.

A$1500

B$1400

C$1300

D$1200

Answer : A

Question 5

A study on a sample of 100 university students reports that the correlation coefficient between the students' attendance at accounting final accounting exam grade is 0.7.

Which of the following statements is true?

A7% of an increase in grade can be explained by an increase in attendance.

BLow attendance at lectures caused students to achieve lower grades

CStudents who attended more lectures tended to achieve higher grades

DIf we considered the same sample of 100 students, the correlation between attendance at economics lectures and their final econ would also be positive

Answer : D

Question 6

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.

A1, 3 and 4

B1, 2 and 4

C2, 3 and 4

D1, 2 and 3

Answer : C

Question 7

Which of the following is a feature of nol-for-profit organisations (NFPs)?

AThey have restricted flows of income

BThey sometimes have shareholders

CTheir objectives can vary greatly

DThey use resources inefficiently

Answer : C

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