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Fundamentals of Business Economics

Last Update 20 hours ago Total Questions : 468

The Fundamentals of Business Economics content is now fully updated, with all current exam questions added 20 hours ago. Deciding to include BA1 practice exam questions in your study plan goes far beyond basic test preparation.

You'll find that our BA1 exam questions frequently feature detailed scenarios and practical problem-solving exercises that directly mirror industry challenges. Engaging with these BA1 sample sets allows you to effectively manage your time and pace yourself, giving you the ability to finish any Fundamentals of Business Economics practice test comfortably within the allotted time.

Question # 41

Brian has 80 bonds with a total market value of £2400. The interest rate on these bonds is 2.34%.

Using these figures, which of the following is the running yield of each of Brian ' s bonds?

A.

8.87%

B.

8.86%

C.

8.9%

D.

8.83%

Question # 42

The share price of Quench Drinks has been steadily falling for several years despite steady sales and a slight market share increase over the last 5 years. They have been criticised for being full of sugar and not

capitalising on the health food trend.

Quench are starting to face pressure from their shareholders to push the share price back up.

Which of the following would be most likely to improve Quench ' s standing in the soft drinks market?

Select ALL that apply.

A.

Release a new protein shake, QuenchFit

B.

Publishing an advert in a major magazine promoting QuenchFit and the benefits of healthy living

C.

Relocate the company to a country with less strict public health guidelines

D.

Continue as normal

E.

Appoint a new CEO

Question # 43

Which of the following will be characteristics of the stakeholders most able to influence the management of an organization?

A.

High power, low interest

B.

High power, high interest

C.

Low power, high interest

D.

Low power, low interest

Question # 44

In a recession, the central bank might adopt a policy of low interest rates. The businesses most likely to benefit from this are those which:

A.

Sell their products mostly on credit

B.

Have low gearing ratios

C.

Are dependent on imported components and raw materials

D.

Produce services rather than manufactured goods

Question # 45

An important distinction between a free trade area and a customs union is that

A.

Only a customs union erects a common external tariff

B.

Only a free trade area allows free internal trade in services as well in goods

C.

Only a customs union is an example of a multilateral trading agreement

D.

Only a free trade area involves common economic policies

Question # 46

Which global financial institution is responsible for providing stabilization funding to assist developed and developing countries with short term borrowing needs and needs for foreign currency?

A.

The IMF

B.

The World Bank

C.

The World Trade Organization

D.

The G20

Question # 47

A bond has a coupon rate of 7%, a nominal value of $100 and a market price of $140

The percentage running yield is %

Question # 48

Which ONE of the following is an External stakeholder in a state-owned energy provider?

A.

The industry regulator

B.

A firm selling equipment to the energy provider

C.

Customers of the energy provider

D.

The government

Question # 49

All of the following could cause the onset of a recession except which one?

A.

A significant appreciation of the exchange rate

B.

A decline in business investment

C.

A significant fall in personal savings rates

D.

An increase in the government budget deficit

Question # 50

All of the following items would appear as a credit on the current account of a country ' s balance of payments accounts except which one?

A.

Interest payments on financial assets held overseas.

B.

Exports of manufactured goods.

C.

Outflows of capital.

D.

Expenditure by visiting foreign tourists.

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