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Fundamentals of Business
Economics
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Weight Syllabus topic
25% A. Macroecono
mic and
Institutional
Certification Provider: CIMA Context of
Business
Exam Code: BA1
30% B. Microecono
Exam: Fundamentals of Business Economics mic and
Organisational
Context of
Duration: 2 Hours Business
Number of questions in the database: 468 20% C. Informational
Context of
Promo Code For CIMA BA1 Dumps: SURE10 Business
25% D. Financial
Context of
Business
Sample Question #1
Some not-for-profit organizations (NPOs) are required to show they are effective. Which one of the following most
closely defines effective?
A. Conducts its activities and operations at low cost
B. Achieves the goals and objectives set for it
C. Finds the correct balance between cost and benefit
D. Doesn't make losses
Answer: B
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Sample Question #2
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
Answer: B
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Sample Question #3
Production of a good is in the public interest if
A. Social benefits are greater than social costs
B. Private benefits equal private costs
C. External benefits equal external costs
D. Social costs are greater than private costs
Answer: A
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Sample Question #4
Which of the following is most likely to lead to a rise in the exchange rate of country's currency and a fall
in the price of stocks shares?
A. An increase in the deficit in the country's balance of payments on current account
B. Foreign investors purchasing shares on the country's capital markets
C. An increase in the country's money supply
D. An increase in rates of interest within the country
Answer: D
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Sample Question #5
Which of the following are reasons why the principal-agent problem is so critical for businesses? Select
ALL that apply.
A. It limits the control of one layer of management over another
B. It can lead to dubious managerial practices within the company
C. It leads to higher profits which ultimately benefit a business
D. Higher sales means the business will perform well regardless of managerial practice
E. Co-ordination needs to be good in order for multiple layers of management to function well
Answer: A B
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