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Updated CIMAPRA17-BA1-1 Practice Questions BY Hill

Question 1

Which of the following describes the effect an interest rate rise may have on a company?

  • A. Prices will have to increase due to increased inflationary pressures
  • B. Sales will increase as consumers have stable incomes in the short term.
  • C. The cost of financing projects through loans will increase
  • D. The cost of holding stock will reduce
Question 2

For a typical business, which of the following is NOT a potential benefit of globalisation?

  • A. Lower cost sites for the location of production
  • B. Simultaneously improved terms of trade for all countries
  • C. Wider sources of supply for inputs.
  • D. Larger markets for outputs