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Free CIMA BA1 Practice Exam with Questions & Answers | Set: 14

Questions 131

A business has a short-term problem with its payments exceeding its receipts. Which TWO of the following would be appropriate for meeting this financial shortfall?

Options:
A.

A bank overdraft

B.

A bill of exchange

C.

A mortgage

D.

Issuing shares

E.

A leasing arrangement

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Questions 132

Which of the following is an example of reflationary monetary policy?

Options:
A.

Lowering interest rates in order to boost the economy during a recession.

B.

Introducing a tax on financial transactions in order to reduce the volume of speculative transactions

C.

Increasing investment in education in order to improve the long term competitiveness of the economy

D.

Reducing government expenditure in order to rem in a budget deficit

Questions 133

The following cash flows are for a capital project where the required rate of return is 8 percent

BA1 Question 133

Calculate the NPV for the project. Give your answer to the nearest whole number

Options:
Questions 134

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

Options:
A.

improving the working condition and pay levels for the employees

B.

Maximising shareholder wealth

C.

Meeting the legally required environmental standards in the industry

D.

Raising the level of dividends paid out

E.

Increasing the remuneration packages of the company directors

Questions 135

Which of the following statements defines a diseconomy of scale?

Options:
A.

A reduction in the unit average cost caused by increasing the scale of production in the long run.

B.

An increase in the unit average cost caused by increasing the scale of production in the long run

C.

An increase in the unit average cost caused by decreasing the scale of production in the long run.

D.

A reduction in the unit average cost caused by decreasing the scale of production in the long run.

Questions 136

In the short term, if an organisation's income is lower than its expenditure, it is an example of:

Options:
A.

financial intermediation

B.

lack of financial synchronisation

C.

why equity capital is needed

D.

financial surplus

Questions 137

rson's correlation coefficient between the number of shirts sold per day (x) and the number of jackets sold per day (y), across its eight stores (n=8).

BA1 Question 137

what is the Pearson's correlation coefficient? Give your answer to two decimal places.

Options:
Questions 138

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?

Options:
A.

External diseconomy of scale.

B.

Internal diseconomy of scale

C.

Internal economy of scale

D.

External economy of scale

Questions 139

The government of Country Z imposes a tariff on all imports of coal from other countries Which THREE of the following are possible effects of this decision in Country?

Options:
A.

The cost of living will fall.

B.

Employment in the coal industry will increase

C.

The balance of payment will improve.

D.

Government's revenue will improve.

E.

Coal producers will adopt new technologies to improve efficiency

F.

More resources will be allocated to alternative energy sources

Questions 140

Which of the following is correct regarding data?

Data can be recorded as:

(1) numbers.

(2) symbols.

(3) raw facts.

Options:
A.

(1)only

B.

(3) only

C.

(1)and

D.

(1),(2)and(3)

Exam Code: BA1
Certification Provider: CIMA
Exam Name: Fundamentals of Business Economics
Last Update: Jul 12, 2025
Questions: 468

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