BA1 CIMA Fundamentals of Business Economics exact Exam Questions

Fundamentals of Business Economics

Last Update 4 hours ago Total Questions : 468

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Question # 121

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

To satisfy the needs of a particular sector of society

To maintain the growth of the organisation.

To make a profit.

To continue to exist.

Question # 122

A regressive tax is defined as one where:

The amount of tax paid by a taxpayer falls as income rises

The rate of tax is different for different income levels

The proportion of income paid in tax rises as income falls

The tax is levied on expenditure not income

Question # 123

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.

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

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

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

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

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

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

Question # 124

Atu, a new social media platform, has launched an advertising campaign directed at areas of Country X where there is a higher proportion of young people than elsewhere.

Which source is most likely to have been used by Atu to acquire this data?

Demographic statistics published in a census

The l{ addresses of computers in these areas

The level of youth unemployment as recorded by the government

The prominence of other brands focused on young people in the area

Question # 125

DigiRecords is an international retailer of CDs and DVDs. It has, however, started selling BluRoy players and discs.

Which of the following may have had an impact on DigiRecords ' decision to begin selling BluRay players and discs?

The increase in demand for BluRay and the subsequent decrease in demand for DVDs

The inexpensive nature ofBluRays compared with DVDs

A decrease in the number ofBluRays being sold

An increase in the number of DVDs being sold

Question # 126

The management of Pennyfarthing ' s Toy Bazaar requires financial advice, but is unsure of which type of bank to approach to acquire this. The company receives a profit of £1,000,000 a year, and currently operates in

Europe and North America.

Which of the following reasons explains why Pennyfarthings Toy Bazaar should use a wholesale bank?

It has a profit of £100,000

It has international operations

It uses the Alternative Investment Market

It has issued new shares to members of the public

It is a medium-sized business

Question # 127

The economy of Country V is initially in equilibrium at a level of national income and employment denoted by Y, at price level denoted by P If there is an increase in aggregate demand, indicate on the graph below the new equilibrium point in the economy.