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CIMA Certificate BA1 Reddit Questions

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Question 16

Which THREE of the following can be used to reduce the principal-agent problem in business organisations?

Options:

A.

Requiring managers to uphold detailed disclosure and reporting practices

B.

Introducing bonuses related to the profit performance of the business.

C.

Implementing a 'top-down' decision-making process.

D.

Implementing a share distribution scheme.

E.

Requiring managers to take into account the interests of external stakeholders.

Question 17

Which of the following is an example of reflationary monetary policy?

Options:

A.

Lowering interest rates in order to boost the economy during a recession.

B.

Introducing a tax on financial transactions in order to reduce the volume of speculative transactions

C.

Increasing investment in education in order to improve the long term competitiveness of the economy

D.

Reducing government expenditure in order to rem in a budget deficit

Question 18

Which of the following would tend to make the market supply of a good price inelastic?

Options:

A.

There are few barriers to entry into the industry.

B.

Many firms in the industry have unused production capacity.

C.

Most firms in the industry have high stock levels of finished goods.

D.

Newly employed workers in the industry require high levels of initial training.

Question 19

A binding financial contract that can be used to hedge exchange rate risks by fixing the rate of exchange at a fixed date, and can be traded in financial markets, is known as:

Options:

A.

an option

B.

a managed floating system

C.

a future

D.

a forward exchange contract

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Exam Code: BA1
Exam Name: Fundamentals of Business Economics
Last Update: Dec 26, 2024
Questions: 468
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