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BA1 Exam Dumps - CIMA Certificate Questions and Answers

Question # 44

A national study ranks the reputation of the top four internet companies and the likelihood of investors buying their shares on the follow the highest ranking and four the lowest.

Calculate the Spearman's rank correlation coefficient between reputation and probable purchase

Options:

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Question # 45

A company in Country M owns a subsidiary in Country O valued at OS200 million. The rate of exchange between the Country M dollar (M$) and the Country O dollar (OS) is OS1 - MS6

If the Country M S depreciated by 10% what would be the increase or decrease in the MS valuation of the subsidiary?

Give your answer in whole millions and indicate whether it is an increase or decrease.

Options:

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Question # 46

A business based in Country A. agrees to buy a software package from a company based in Country O tor 20.000 Country O dollars 12 months time. At the time of the contract the exchange rate was 1 O dollar (0$) to 1.5 Country A pounds (A£). When payment ism

Rate is O$1 to A£1 4.

What is the exchange rate gain (+) or loss (-) made by the Country A business?

Give your answer to a whole number.

Options:

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Question # 47

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

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Question # 48

If the government imposed a legal minimum wage that was above the market equilibrium wage, the resulting unemployment would be the greatest when:

Options:

A.

the demand for labor and the supply of labor are both price inelastic

B.

the demand for labor and the supply of labor are both price elastic

C.

the demand for labor is price inelastic and the supply of labor is price elastic

D.

the demand for labor is price elastic and the supply of labor is price inelastic

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Question # 49

Which ONE of the following is NOT a symptom of the principal-agent problem in company XYZ?

Options:

A.

The pay of the directors of XYZ is not related to the company's financial performance

B.

XYZ loses money following a risky investment in a new line of business

C.

The family of the Chief Executive of XYZ use the company jet for shopping trips

D.

XYZ's Board conceals information about losses from shareholders

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Question # 50

Which ONE of the following statements best describes the impact of a government price floor (minimum price) set below free market price?

Options:

A.

It will create a shortage of the product and incentives for producers and consumers to evade the policy

B.

It will create a surplus of unsold produce that will need to be paid for from taxation

C.

It will not affect market price or producer incomes at the present time

D.

It will increase farm incomes but eventually force the government to introduce maximum quotas on production

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Question # 51

Which of the following statements about public goods is correct?

Options:

A.

Public goods are defined as those goods provided by the state

B.

Public goods are examples of free goods

C.

Public goods are characterized by the free-rider problem

D.

The problem of scarcity does not affect the provision of public goods

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Question # 52

If the price elasticity of supply for a good over a certain price range is 0.8, the increase in the quantity supplied of that good, following a 10% increase in its price, will be

Options:

A.

0.8%

B.

8.0%

C.

18%

D.

80%

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Question # 53

Which ONE of the following is NOT an Internal stakeholder?

Options:

A.

Director

B.

Manager

C.

Worker

D.

Investor

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