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BA1 Exam Dumps - Fundamentals of Business Economics

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Question # 41

Since its release. Bob Aker's 'Cooking to Go' has sold the following number of copies each Q1:

2X13:200

2X14:430

2X15:530

2X16:450

Using these figures and the equation, y (trend) = 500 + 20x, which of the following is the mean seasonal average of sales of Bob Aker's 'Cooking to Go' for Q1 over the last four years?

Calculate all the final and answer and all intermediate workings to 2 dp.

0.77

0.85

1.02

4.5

0.63

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Question # 42

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.

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

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Question # 43

Quantitative easing, the purchase of government or private securities by the central banks from investors, is an example of

A.

contractionary monetary policy.

B.

contractionary fiscal policy.

C.

expansionary fiscal policy.

D.

expansionary monetary policy.

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Question # 44

The component bar chart displaying sales revenues for different types of product sold by Pills Pharmaceuticals shows that the poorest performing products are its medical devices.

Which of the following may be reasons for this?

Select ALL that apply.

A.

The company does not specialise in selling medical devices to hospitals

B.

The company has only recently started to develop and sell medical devices and equipment

C.

The company may be winding up its development and distribution of medical devices and equipment

D.

The company may be facing a public relations crisis which is turning away members of the public who would

E.

otherwise be interested in buying these products

F.

The company may be involved in a standards dispute in terms of over-inflated prices for its medical devices

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Question # 45

The government of Vencia has set out in its Budget a restrictive set of fiscal policies. These include raising VAT and the basic rate of income tax to 25%. The Bank of Vencia must now implement this Budget as monetary

policy.

Which of the following best outlines how the Bank of Vencia might do this?

A.

Halt all ongoing quantitative easing programmes, buy bonds at a higher interest rate and sell treasury bills

B.

Implement quantitative easing programmes, sell bonds and buy treasury bills

C.

Lower the capital adequacy ratio, increasing banks' lending power

D.

Implement quantitative easing programmes, buy bonds and treasury bills

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Question # 46

A business has a contractual requirement to pay a sum of$6m in a foreign currency in 12 months time. It takes out a forward exchange contract from this sum.

A.

This is an example of

B.

Translation risk avoidance

C.

Arbitrage

D.

hedging

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Question # 47

Golden Crisp Cereals has calculated that its demand price elasticity is -1.4. It wants to expand in order to produce more cereal and hence increase its sales.

Which of the following are ways in which Golden Crisp Cereals could expand in the short run?

Select ALL that apply.

A.

Lease cereal-producing equipment at a fixed price for the next six months

B.

Lease a small factory at a fixed price in order to increase production capacity

C.

Construct a new factory, increasing both staff within the business and the company's production capacity

D.

Invest in research and development so as to perfect the cereal-making process and maintain the company's position as a market leader

E.

Build a long-term marketing strategy involving social media to boost product awareness and hence sales

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Question # 48

Golden Crisp Cereals plans to build its new factory on the outskirts of Bimbleton, an affluent medium-sized town where its current headquarters is based. The area where they are planning to build the factory was

formerly a country park.

Of the following, which stakeholder would be most likely to protest against the construction of the new Golden Crisp Cereals factory?

A.

Environmental groups

B.

Current employees

C.

Trade unions

D.

Local residents

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