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?
The share price of Quench Drinks has been steadily falling for several years despite steady sales and a slight market share increase over the last 5 years. They have been criticised for being full of sugar and not
capitalising on the health food trend.
Quench are starting to face pressure from their shareholders to push the share price back up.
Which of the following would be most likely to improve Quench's standing in the soft drinks market?
Select ALL that apply.
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.
The Lingford Miracle Association is a registered charity. It is closely associated with Lingford General Hospital. The charity has a number of goals.
Which of the following could potentially be goals set out by the Lingford Miracle Association given the information about the organisation that has been outlined?
The economy of Country V is initially in equilibrium at a level of national income and employment denoted by Y, at price level denoted by P If there is an increase in aggregate demand, indicate on the graph below the new equilibrium point in the economy.
Which of the following is correct in relation to businesses.
In order to maximise shareholder wealth, the primary objective of a business can be reflected in
(1) higher investment
(2) higher sales revenue
(3) higher share prices
(4) higher dividend payments.
Brian has 80 bonds with a total market value of £2400. The interest rate on these bonds is 2.34%.
Using these figures, which of the following is the running yield of each of Brian's bonds?
All of the following are appropriate policies to deal with the problem of industries which cause pollution except which one?
A promoter has arranged a large outdoor concert. All the costs are fixed and there are no variable costs associated with the number of spectators attending.
Which of the following statements about the profit maximizing price is FALSE?
Which of the functions of a financial intermediary is described by the following statement 'Invests across a wide range of assets to reduce the loss of capital value if a particular borrower defaults'?
A government may try to reduce a balance of payments deficit on current account by using either expenditure-reducing policies or expenditure-switching policies.
Which of the following is an expenditure-reducing policy?
Central banks inspect and sometimes set minimum limits on the reserves held by commercial banks. Which ONE of the following statements is NOT a reason that central banks seek to influence the reserves of commercial banks?
When central banks adopt a policy of 'quantitative easing' this means that they:
Identify in the following list the statement that does not describe a function of a financial intermediary:
Which of the following functions is not performed by investment exchanges such as NASDAQ, the London Stock Exchange or the New York Stock Exchange?
The management of Pennyfarthing's Toy Bazaar requires financial advice, but is unsure of which type of bank to approach to acquire this. The company receives a profit of £1,000,000 a year, and currently operates in
Europe and North America.
Which of the following reasons explains why Pennyfarthings Toy Bazaar should use a wholesale bank?
The burden of an indirect tax on a good will fall most heavily on the producer when
Which of the following might justify a policy of privatization by the government?
(i). Privatization inevitably reduces monopoly power and exploitation in the economy
(ii). Privatization may be expected to increase the efficiency and competitiveness of the economy
(iii). Revenue raised from privatization can reduce the public sector borrowing requirement
(iv). Privatization helps to promote an enterprise culture amongst the population
All of the following are examples of not-for-profit organizations except one. Which ONE is the exception?
Following a 10% reduction in the value of its currency, the volume of imports into the country falls by 10%, whilst the volume of exports rises by 15%.
Which of the following effects will occur?
The company flowbo Ltd. currently owns 25 bonds with a total nominal value of £1,000. The bill rate is currently 7%. The market value of the bonds is currently 14.5% higher than the nominal value of each individual bond
plus the bill rate.
Which of these is the difference between the nominal value of the bonds plus the bill rate payout and the market value of each bond?
Express your answer in whole pounds.
Which of the following are reasons why the principal-agent problem is so critical for businesses? Select ALL that apply.
Vencia has recently been faced with international condemnation due to its tendency to engage in 'dirty floating'. This is combined with high interest rates as well as underdeveloped industries.
What would likely be the result of these conditions on Vencia's trade?
Which of the following provide possible explanations for the existence of a structure of interest rates?
(i). Borrowers having different risk profiles
(ii). Lenders wishing to lend for different time profiles
(iii). The market for loanable funds being perfectly competitive
(iv). The existence of margins between borrowing and lending rates
If in a boom a government adopted a contractionary (restrictive) monetary policy, a typical business would expect to experience:
i. Higher interest payments on its bank borrowing.
ii. Falling credit based sales.
iii. Higher income and corporate taxes.
iv. Lower sales to government agencies.
v. Difficulties in securing working capital
vi. Higher prices for imported components.
A business is contemplating investing in a new project with a lifespan of three years and a capital cost of $100,000. The expected net cash flows from the project are as follows:
Year 1 $35,000
Year 2 $50,000
Year 3 $40,000
The cost of capital to the business is 10%
The net present value of the project is: $
When the economy is in recession, which of the following is least likely to reduce unemployment?
A business would benefit most from an appreciation in the currency of the country in which it is based if:
Which one of the following policies to correct a balance of payments current account deficit is an example of an expenditure reducing policy?
A business has fixed costs of $200. Its total variable costs at different levels of output are as follows:
The business can always sell its output at a price of $100 per unit
The profit maximizing level of output is
Which of the following will be characteristics of the stakeholders most able to influence the management of an organization?
Which ONE of the following should NOT be classed as an agent of a firm's shareholder?
Which of the following best describes a project that has a negative Net Present Value?
In a recession which ONE of the following would be likely to experience the largest fall in demand for its products?
If a government, on grounds of economic efficiency, were to levy a tax on an industry because of the pollution caused by production in the industry, the tax should be equal to
Why do monopoly market structures charge higher prices than would be charged by more competitive market structures?
Which ONE of the following would make the market supply of a product price elastic?
The market demand for a good has a price elasticity of demand of 0.4. Which of the following statements is correct?
A market for a normal good is in equilibrium. What will happen in this market if there was an increase in consumer incomes?
Which of the following statements most accurately describes the role of an agent as defined in principal-agent theory?
Firms may suffer from X-inefficiency because of organizational slack. All of the following would lead to organizational slack except which one?
All of the following factors contribute to the instability of agricultural prices except which ONE?
Which ONE of the following statements best describes the impact of a government minimum price established above free market price?
Which TWO of the following are positive impacts for a national economy which hosts a multinational company's (MNC) production facilities within their country"?
Which of the following are the likely consequences, in the domestic of a county, of an increase in interest rates?
1. A rise in demand for capital goods
2. A fall in demand for consumer good.
3. A fall in demand for housing
4. A rise in the exchange rate.
Which of the following organisational arrangements is an example of a multinational corporation (MNC)?
Organisations are able to achieve more than individuals can achieve because they allow people to do which THREE of the following?
A business sells soft drinks at S3 a bottle and its current sales are 20,000 bottles per month. The price elasticity of demand for this product is -2 If the price is reduced to $2 70, the change in the total revenue for the business will be:
A company currently sells 10,000 bottles of "bright pink" nail varnish every year at $5 per bottle If the price is reduced to $4.50 per bottle it is expected that the company will sell an extra 2,000 bottles
What is the price elasticity of demand of the nail varnish?
Company A uses the trend equation, y = a + bt, to forecast sales, where y are sales and t are time periods measured in units At time period zero, sales were $865,000 In period 5. sales have increased to $1.245.000 Calculate coefficient b (without any decimal points):
Which of the following is also known as the International Bank for Reconstruction and Development?
A business has a short-term problem with its payments exceeding its receipts. Which TWO of the following would be appropriate for meeting this financial shortfall?
A binding financial contract that can be used to hedge exchange rate risks by fixing the rate of exchange at a fixed date, and can be traded in financial markets, is known as:
If country A imposes a quota on imports from country B, what is the direct effect of the quota?
A client agrees to invest S100,000 three years from now in a business project, and decides to deposit funds today in a bank account that pays 6 percent compound interest annually.
How much does the client need to deposit in order to be able invest $100,000 in three years time?
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TESTED 21 Nov 2024
