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CIMA Certificate BA1 Book

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Question 60

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

Question 61

Inflation is undesirable for all of the following reasons except which one?

Options:

A.

Inflation decreases the international competitiveness of the business sector.

B.

Inflation distorts the price system and the process of resource allocation.

C.

Inflation shifts wealth from debtors to creditors in an arbitrary fashion.

D.

Inflation makes business forecasting and planning more difficult.

Question 62

Which of the following is an invisible import for a country?

Options:

A.

Expenditure in its shops by foreign diplomats based in the country

B.

The country's contribution to foreign aid

C.

A foreign company signing a contract guaranteeing to invest in a new factory in the country

D.

Repayment of an IMF loan by the country's government

Question 63

Which one of the following would raise both national income and disposable income ?

Options:

A.

An increase in transfer payments

B.

A reduction in rates of personal income tax

C.

An increase in business profits

D.

A rise in the rates of personal income tax

Page: 15 / 17
Exam Code: BA1
Exam Name: Fundamentals of Business Economics
Last Update: Nov 21, 2024
Questions: 468
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