CIMA CIMAPRA17-BA1-1-ENG BA1 – Fundamentals of Business Economics (2017 SYLLABUS) (Online) Online Training
CIMA CIMAPRA17-BA1-1-ENG Online Training
The questions for CIMAPRA17-BA1-1-ENG were last updated at May 09,2025.
- Exam Code: CIMAPRA17-BA1-1-ENG
- Exam Name: BA1 - Fundamentals of Business Economics (2017 SYLLABUS) (Online)
- Certification Provider: CIMA
- Latest update: May 09,2025
Which of the following would not be a reason for a government to impose a quota on imports?
- A . To plan the orderly decline of industries that have lost comparative advantage
- B . To prevent dumping
- C . To protect infant and strategic industries
- D . To prevent completely the country’s citizens consuming an imported demerit good
CORRECT TEXT
A business is contemplating investing in a new project with a lifespan of three years and a capital cost of $100,000.
The expected net cash flows from the project are as follows:
Year 1 $35,000
Year 2 $50,000
Year 3 $40,000
The cost of capital to the business is 10%
The net present value of the project is: $
All of the following are objectives of not-for-profit organizations except one.
Which ONE is the exception?
- A . Value for money
- B . Maximization of financial surpluses
- C . Serving the public interest effectively
- D . Efficient use of physical and human resources
Which ONE of the following is regarded as a general characteristic of an organization?
- A . Controlled performance of its activities
- B . Social goals towards society
- C . Collective goals towards society
- D . Social arrangement of people
A government might increase its budget deficit in order to reduce
- A . Demand-deficient or cyclical unemployment
- B . Frictional unemployment
- C . Technological unemployment
- D . Classical or real-wage unemployment
Select the best definition of a regressive tax from the options below:
- A . A tax which rises proportionately with income
- B . A tax which rises more than proportionately with income
- C . A tax which rises less than proportionately with income
- D . A tax on expenditure
All of the following are early indicators of a recovery from a recession except which one?
- A . A rise in business confidence.
- B . An acceleration in the growth of the money supply.
- C . A fall in the level of net personal debt.
- D . An increase in the number of unfilled vacancies.
If a government adopted a fiscal policy of cutting its budget deficit, the aggregate demand and supply model shows that the result would be:
- A . a shift in the aggregate demand curve to the right, a fall in output and employment and a rise in the price level
- B . a shift in the aggregate demand curve to the left, a fall in output and employment and a fall in the price level
- C . a shift in the aggregate demand curve to the left, a fall in output and employment and a rise in the price level
- D . a shift in the aggregate demand curve to the right, a rise in output and employment and a rise in the price level
Which of the following would lead to an increase in a firm’s share price?
- A . Management announces that profits are still rising in line with the forecasts in its published 5 year plan
- B . Management announces that profits will be higher than had previously been forecast
- C . A rise in the rate of interest available from investing in government securities
- D . Management announces that new laws on working conditions have forced them to close a profitable factory earlier than had been expected
Which of the following is an invisible import for a country?
- 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