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CIMA BA1 Dumps

Exam Code:
BA1
Exam Name:
Fundamentals of Business Economics
Last Update: Apr 25, 2024
468 Questions
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Fundamentals of Business Economics Practice Questions

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Fundamentals of Business Economics Questions and Answers

Questions 1

Company X is a wholesaler. It sells the majority of its products in bulk to a small number of restaurants and cafes in the local area.

Which of the following will Company X experience in light of this?

Select ALL that apply.

Options:

A.

A reduction in distribution costs as a result of economies of scale

B.

A reduction in the number of staff needed to perform certain roles within the company

C.

The company will not be able to buy in bulk at a discount in the future

D.

The company will not be able to maximise efficiency due to rapid business growth

E.

It will not experience the benefits of economies of scale

Questions 2

Which of the following are reasons why the principal-agent problem is so critical for businesses? Select ALL that apply.

Options:

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

Questions 3

Best for Beer is a brewery based in the UK. In the last year, it has seen its sales decrease by 23%. During the same period, the British Government has launched and run a public health campaign against excessive

alcohol consumption due to the rising number of incidents related to excessive alcohol consumption or 'binge-drinking' in the country.

Which of the following sources would be most relevant for Best for Beer to discover more about the public health campaign's effect on sales?

Options:

A.

News media

B.

Online surveys for customers

C.

Employment briefings

D.

Trade journals

E.

Legal information

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