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BA1 Exam Dumps - CIMA Certificate Questions and Answers

Question # 24

Atu, a new social media platform, has launched an advertising campaign directed at areas of Country X where there is a higher proportion of young people than elsewhere.

Which source is most likely to have been used by Atu to acquire this data?

Options:

A.

Demographic statistics published in a census

B.

The l{ addresses of computers in these areas

C.

The level of youth unemployment as recorded by the government

D.

The prominence of other brands focused on young people in the area

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Question # 25

Which of the following will NOT affect the price elasticity of supply?

Options:

A.

The time period considered.

B.

Production costs.

C.

The level of stocks.

D.

Proportion of income spent.

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Question # 26

Which of the following is correct in regards to organisations?

Organisations achieve more than individuals can achieve on their own because they enable people to

(1) share skills and knowledge

(2) maximise individuals' interests.

(3) specialise

(4) pool resources

Options:

A.

(1), (2)and(3)

B.

(2), (3) and (4)

C.

(1),(2)and(4)

D.

(1), (3) and (4)

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Question # 27

The country Messu Potami is a key exporter of steel. However, its prominence as a steel exporter is partially due to its manipulating of exchange rates by buying large amounts of other countries' currencies.

How best can neighbouring countries prevent the cheap exports produced by Messu Potami from affecting their own domestic markets?

Options:

A.

Impose a fixed tariff on imports coming from Messu Potami

B.

Impose an embargo on imports coming from Messu Potami

C.

Negotiate a VERA which would restrict the amount of Messu Potamian products entering these countries' domestic markets

D.

Provide a subsidy to markets directly competing with Messu Potamian exports to eliminate any unfair competition

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Question # 28

The company flowbo Ltd. currently owns 25 bonds with a total nominal value of £1,000. The bill rate is currently 7%. The market value of the bonds is currently 14.5% higher than the nominal value of each individual bond

plus the bill rate.

Which of these is the difference between the nominal value of the bonds plus the bill rate payout and the market value of each bond?

Express your answer in whole pounds.

Options:

A.

£1,021

B.

£1,070

C.

£1,225.15

D.

£1,155.12

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Question # 29

Brilliant Buys Local is a subsidiary of Brilliant Buys, and operates a number of smaller stores in local neighbourhoods.

The managing director of Brilliant Buys Local, Mr Davidson, has been given a scatter diagram with sales of each store based on the size of the local population.

Which of the following options outlines the best ways to interpret this diagram in this context?

Select ALL that apply.

Options:

A.

Use Pearson's coefficient to accurately draw a line of best fit

B.

Draw a line of best fit by eye and estimate how much of a correlation there is between store sales and population

C.

Rearrange the data points on the scatter diagram so that it shows any correlation more clearly

D.

Use the diagram to interpret that two of the stores with the highest sales are in areas with a medium-sized population

E.

Use the diagram to interpret that the store with the lowest sales was in an area with a population of 5000

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Question # 30

The managing director of Polly's has been given a pie chart showing the current proportion of sales across the chain's five stores.

Which of the below are the most significant reasons why the pie chart is an inappropriate way of expressing this data?

Select ALL that apply.

Options:

A.

It cannot be used to develop sales strategies moving forward

B.

It does not give specific details as to which items sold in store are experiencing poor sales

C.

It does not show the best and worst performing stores

D.

It does not track sales over time

E.

It does not show the store sales as raw figures

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Question # 31

Betsy's Fish Foods Pic. has issued shares in a prospectus.

Which of the following are benefits of selling shares in this manner?

Select ALL that apply.

Options:

A.

It allows companies to open up its investor base

B.

It allows more investors to receive profits in the form of dividends from the company

C.

It allows the company to sell shares at a discounted price

D.

It allows the company to sell shares to larger private firms who can invest more money into the company

E.

It allows the company to sell second-hand shares

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Question # 32

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%

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Question # 33

Governments provide public goods, such as street lighting, because

Options:

A.

private business providers would exploit consumers and make excess profits

B.

it would be an unprofitable activity for private business because of the free-rider problem

C.

governments are more efficient producers of such goods

D.

there are significant external costs in the production process

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Exam Code: BA1
Exam Name: Fundamentals of Business Economics
Last Update: Mar 31, 2025
Questions: 468
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