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Free CIMA BA1 Practice Exam with Questions & Answers | Set: 3

Questions 21

Oxfam is a charity established to provide aid to the poor. Which ONE of the following statements about Oxfam is FALSE?

Options:
A.

It is a private sector organization

B.

It pursues social goals

C.

It is a not-for-profit organization

D.

It is responsible to its shareholders

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Questions 22

On an aggregate demand and aggregate supply diagram, cost-push inflation is shown by

Options:
A.

A leftward shift of the short-run aggregate supply curve

B.

A rightward shift of the aggregate demand curve

C.

A rightward shift of the long-run aggregate supply curve

D.

A leftward shift of the aggregate demand curve

Questions 23

A business was selling 20,000 units of its product per month at a price of $10. When it lowers its price to $9 it finds that its sales rise to 24,000 units per month.

The price elasticity of demand for this firm's product is

Options:
Questions 24

The distinguishing feature of a transnational (multinational) company is that

Options:
A.

it exports its products to more than one country.

B.

its production process uses inputs from more than one country.

C.

it has production facilities in more than one country.

D.

it has shareholders in more than one country.

Questions 25

Which of the following is not taken into account by the discount factor applied to future earnings when calculating shareholder value?

Options:
A.

Shareholders rate of time preference for money

B.

The amount of earnings that will be lost as taxation

C.

The amount of risk the investment is subject to

D.

The rate of inflation

Questions 26

Which of the following statements best describes a private firm?

Options:
A.

An organization that does not seek profit

B.

An organization that is owned by shareholders

C.

An organization that is outside the state's influence

D.

An organization that is not directly owned by the state

Questions 27

Which ONE of the following would appear as a debit item on a country's balance of payments current account?

Options:
A.

Overseas investment by a domestic multinational company

B.

Expenditure in the country by an overseas visitor

C.

A flow of company profits to the parent company based in another country

D.

Payment by an overseas company for services provided in the country

Questions 28

All of the following are typical features of the downswing phase of the trade cycle except one. Which ONE is the exception?

Options:
A.

A rise in the level of unemployment

B.

A fall in the rate of inflation

C.

The government budget balance moving towards a deficit

D.

The balance of payments current account moving towards a deficit

Questions 29

Following the emergence of the global banking crisis in 2007 many central banks undertook quantitative easing through purchasing bonds back from banks with new money. Which function of a central bank does this describe?

Options:
A.

Banker to the banking system

B.

Supervision of the banking system

C.

Banker to the government

D.

Lender of last resort to the banking system

Questions 30

Identify the source of funds most appropriate for a growing company to use which wishes to borrow funds long-term to pay for initial marketing research and promotion?

Options:
A.

A debenture

B.

A commercial bill

C.

Ordinary shares

D.

Overdraft

Exam Code: BA1
Certification Provider: CIMA
Exam Name: Fundamentals of Business Economics
Last Update: Jul 19, 2025
Questions: 468

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