Free Practice CIMA CIMAPRA17-BA1-1-ENG Exam Questions 2026

Stay ahead with 100% Free BA1 - Fundamentals of Business Economics (2017 SYLLABUS) (Online) CIMAPRA17-BA1-1-ENG Dumps Practice Questions

Page: 1 / 95

Total 471 Questions | Updated On: May 23, 2026

Add To Cart

Question 1

All the following statements about small firms are correct except one. Which statement is incorrect?

A : Small firms do not generally raise finance on the capital market

B : Banks may refuse to lend to small firms because of the risk involved

C : Small firms are common in industries which display increasing returns to scale

D : Small firms are common in industries where there are niche markets

Answer: D

Question 2

PlusTech is a video games company with staff based in Los Angeles, California, London, UK, and Berlin, Germany. PlusTech currently employs 20 people to develop and market its games, while the distribution is

handled by RPGInternational, a separate company.

Why should PlusTech adopt multiple business structures in order to succeed in the video games industry?

Select ALL that apply.

A : The videogames industry is international, therefore the company should adopt the model of a virtual organisation

B : The small number of staff the company has means it has to form a strategic alliance with RPGInternational in order to distribute its games

C : The company needs to be technologically advanced so as to remain a market leader in the industry

D : The company has no direction, therefore does not stick to one particular business model

E : The company does not have the revenue to increase its staff numbers

F : The company is at risk of not succeeding if it does not adopt various business models

Answer: A,B

Question 3

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

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

Answer: B

Question 4

A rise in interest rates in an economy would lead to all of the following except which one ?

A : A rise in the exchange rate for the currency

B : A rise in personal saving

C : An increase in business investment

D : A rise in public expenditure

Answer: C

Question 5

All of the following are functions of central banks except which one?

A : Banker to the commercial banks

B : Holder of the foreign exchange reserves

C : Banker to the government

D : Determination and conduct of fiscal policy

Answer: D

Page: 1 / 95

Total 471 Questions | Updated On: May 23, 2026

Add To Cart