Free CIMA CIMAPRA17-BA1-1-ENG Exam Questions

Become CIMA Certified with updated CIMAPRA17-BA1-1-ENG exam questions and correct answers

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Total 471 Questions | Updated On: Oct 29, 2024

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Question 1

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 : ture

B : tion

C : rward contract

D : oating exchange rate

Answer: C

Question 2

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

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

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

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

E : company does not have the revenue to increase its staff numbers

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

Answer: A,B

Question 3

Which of the following influences explains why the average costs of a firm will rise in the short run?

A : economies of scale

B : ing unit costs

C : minishing marginal returns

D : minishing returns to scale

Answer: C

Question 4

Bishops Financial Services has outsourced its HR Department to Resources4U.

Which of the following is most likely to be considered when deciding to outsource parts of the business to another company?

A : ources4U's lack of business history

B : cost of increasing the number of staff on the payroll

C : small size of Bishops Financial Services as a business

D : possibility of contract renegotiation at a future date

Answer: A

Question 5

A market for a normal good is in equilibrium. What will happen in this market if there was an increase in consumer incomes?

A : demand curve would shift to the right, the equilibrium price would rise and there would be an increase in supply

B : demand curve would shift to the left, the equilibrium price would fall and there would be a contraction in supply

C : demand curve would shift to the right, the equilibrium price would rise and there would be an extension in supply

D : demand curve would shift to the left, the price would fall and there would be a decrease in supply

Answer: C

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Total 471 Questions | Updated On: Oct 29, 2024

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