Free Practice CIMA CIMAPRA17-BA1-1-ENG Exam Questions 2025

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

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Total 471 Questions | Updated On: Apr 21, 2025

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Question 1

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.

A : $-140000

B : $-130000

C : $-120000

D : $-110000

Answer: A

Question 2

Company A is looking to protect itself from transaction exchange rate risk.

Company A does not require 100% of the value of transaction to be protected, and it would like the method it uses to have the following characteristics

* An agreed exchange rate for a specified period where both parties have a legal obligation

* A separation of the contract guaranteeing the pnce of the currency from the underlying transaction.

Which of the following would best provide the type of protection from exchange rate risk company A wants?

A : Future

B : Option

C : Forward contract

D : Floating exchange rate

Answer: C

Question 3

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 4

Which global financial institution is responsible for making long term loans to assist developing countries to invest and develop?

A : The IMF

B : The World Bank

C : The World Trade Organization

D : The G20

Answer: B

Question 5

A government issues a security which promises to pay $100 per year indefinitely. What is it worth if the required rate of return is..

A : $2, 400

B : $1, 400

C : $2, 500

D : $4, 000

Answer: C

Page: 1 / 95

Total 471 Questions | Updated On: Apr 21, 2025

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