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Free CIMA BA1 Practice Exam with Questions & Answers | Set: 6

Questions 51

Diseconomies of scale

Options:
A.

are the result of the operation of the law of diminishing returns

B.

occur because all firms face a U shaped short run average cost curve

C.

cause the long run average cost curve to rise

D.

are the result of businesses adopting a divisional structure

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Questions 52

Which of the following best describes the term 'National Debt'?

Options:
A.

Money the government owes to governments of other countries

B.

Money the government must borrow to make up the shortfall between tax revenue and government expenditures

C.

Special assets issued by government to finance wars

D.

The accumulated borrowings by the government in previous years that have not yet been repaid

Questions 53

Which of the following might be regarded as benefits of the single currency, the Euro?

(i). Greater freedom for member countries to set their own interest rates

(ii). It is easier to compare prices of consumer goods in all countries using the Euro

(iii). A reduction in transactions costs for trade between countries using the Euro

(iv). Increased economic growth resulting from a more efficient common market

Options:
A.

(i) and (ii) only

B.

(i), (ii) and (iv) only

C.

(iii) and (iv) only

D.

(ii), (iii) and (iv) only

Questions 54

Calculate the yield to an investor available from the following commercial bill:

Face value$100,000

Market price$98,500

Maturity90 days time

Options:
A.

1.5%

B.

4.5%

C.

6.1%

D.

$1,500

Questions 55

Lending to member states that are experiencing serious balance of payments problems is the role of:

Options:
A.

The World Bank

B.

The International Monetary Fund

C.

The G8 Group

D.

The World Trade Organization

Questions 56

Which ONE of the following would be expected to reduce the net present value of a proposed investment project?

A rise in

Options:
A.

the expected cash flows from the project

B.

the scrap value of the capital at the end of the project's life

C.

interest rates

D.

the net present value of alternative projects

Questions 57

Pills Pharmaceuticals have compiled a component bar chart detailing the proportion of sales revenue the organisation receives from the sale of three groups of products: medical devices, contraceptives and day-to-day or prescription drugs.

BA1 Question 57

In Month 2, which was the most profitable type of product?

Options:
A.

Pills Medical Devices

B.

Pills Contraceptives

C.

Pills Day-to-Day Tablets

Questions 58

Brian has 80 bonds with a total market value of £2400. The interest rate on these bonds is 2.34%.

Using these figures, which of the following is the running yield of each of Brian's bonds?

Options:
A.

8.87%

B.

8.86%

C.

8.9%

D.

8.83%

Questions 59

Which of the following is a primary objective of a not-for-profit organisation?

Options:
A.

To satisfy the needs of a particular sector of society

B.

To maintain the growth of the organisation.

C.

To make a profit.

D.

To continue to exist.

Questions 60

Jacob's Tobacconists have recently been hit by the increase in tax on tobacco products in the UK. The graph shows the drop in demand after the tax was applied to these products.

BA1 Question 60

What might the amount denoted by the difference between PO and P1 on the graph be used for?

Options:
A.

To fund public health services in the UK

B.

To add to the profits of Jacob's Tobacconist

C.

To invest in other tobacconists and cigarette producers situated in the UK