Overview Of This Exam:Vendor: CIMAExam ID: BA1Exam Name: Fundamentals of Business EconomicsExam Language: English
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Overview of CIMA Certificate in Business Accounting Certification:DEMO QUESTIONS:
#QUESTION: 1Some 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 costB. Achieves the goals and objectives set for itC. Finds the correct balance between cost and benefitD. Doesn't make losses
Answer: B
#QUESTIONS: 2Which ONE of the following is regarded as a general characteristic of an organization?
A. Controlled performance of its activitiesB. Social goals towards societyC. Collective goals towards societyD. Social arrangement of people
Answer: B
#QUESTIONS: 3Production of a good is in the public interest if
A. Social benefits are greater than social costsB. Private benefits equal private costsC. External benefits equal external costsD. Social costs are greater than private costs
Answer: A
QUESTIONS: 4Which 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 accountB. Foreign investors purchasing shares on the country's capital marketsC. An increase in the country's money supplyD. An increase in rates of interest within the country
Answer: D
QUESTIONS: 5Which of the following are reasons why the principal-agent problem is so critical for businesses? Select ALLthat apply.
A. It limits the control of one layer of management over anotherB. It can lead to dubious managerial practices within the companyC. It leads to higher profits which ultimately benefit a businessD. Higher sales means the business will perform well regardless of managerial practiceE. Co-ordination needs to be good in order for multiple layers of management to function well
Answer: A B

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