Pass the CIMA Certificate BA1 Questions and answers with ExamsMirror

The interest rate at TrowBank is currently running at 7%. The number of customers borrowing to invest has fallen drastically.

Which of the following explains why this is the case?

Select ALL that apply.

A regressive tax is defined as one where:

A wireless phone manufacturer currently sells 2,000 units per quarter at a price of $400 The estimated price elasticity of demand is -2.5.

The manufacturer is considering an increase in the price to $440

What will this raise (+) or reduce (-) total revenue by? Give your answer in whole numbers.

The graph shows house prices in Lingford, a large urban town in a prosperous region.

Which of the following would be the equilibrium price for houses in Lingford?

TrowPlan Ltd. is planning on growing their business through expanding their real estate holdings. In order to do this, they have taken out a bank loan of £2 million. This loan is to be repaid by TrowPlan Ltd. over a period of

14 years with an interest rate of 10%. However, there are rumours of recession in the banking sector, and the economic uncertainty caused by Britain's vote to leave the EU continues to decrease the value of pound

sterling.

In these circumstances, which of these options would be the least suitable course of action for TrowPlan Ltd. to take?

Select ALL that apply.

Which of the following is correct in relation to businesses.

In order to maximise shareholder wealth, the primary objective of a business can be reflected in

(1) higher investment

(2) higher sales revenue

(3) higher share prices

(4) higher dividend payments.

If out of every £20 million increase in national income, £2 million is saved, £4 million is spent on imports and £4 million is paid to the government in taxation, an increase in exports of £40 million will lead to an eventual increase in national income of

The British Government has decided to invest £10m in the Department of Education to build new schools in the most deprived areas of the country.

In what way does this benefit the British economy?

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.

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

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