CIMAPRO17-BA1-X1-ENG Online Practice Questions and Answers

DRAG DROP

Complete the table inputting the relevant effect for each of the scenarios listed.

Select and Place:

In recent years, consumer groups have become more vocal in calling for the boycott of producers whose suppliers do not comply with international regulations on workplace safety and child labour. A fashion company that outsources its production to low labour cost countries should include this phenomenon in which part of their PESTEL framework?

A. T

B. E

C. S

D. P

Company A owns a factory in a foreign country. Which of the following types of exchange rate risk is company A most likely to experience in relation to the value of the factory?

A. Economic risk

B. Energy risk

C. Transaction risk

D. Translation risk

Which THREE of the following can be used to reduce the principal-agent problem in business organizations? (Choose three.)

A. Requiring managers to uphold detailed disclosure and reporting practices.

B. Introducing bonuses related to the profit performance of the business.

C. Implementing a 'top-down' decision-making process.

D. Implementing a share distribution scheme.

E. Requiring managers to take into account the interests of external stakeholders.

A business sells soft drinks at $3 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. -$3,300

B. +$4,800

C. -$16,800

D. +$4,000

Futures are like forwards in that:

A. futures are a binding contract.

B. futures can be traded on future exchanges.

C. futures are standardized contracts for standardized amounts.

D. futures always cover the exact foreign currency exposure.

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A business analyst has computed a trend regression for the sales of company X. The following table reports the ratios between the actual quarterly sales of company X and the calculated trend, for a period of four years.

What is the seasonal component in the fourth quarter? Give your answer to three decimal places.

A. 0.563

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The following cash flows are for a capital project where the required rate of return is 8 percent.

Calculate the NPV for the project. Give your answer to the nearest whole number.

A. 106,000

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A clothes retailer wants to compute the Pearson's correlation coefficient between the number of shirts sold per day (x) and the number of jackets sold per day (y), across its eight stores (n=8).

If Σx = 256, Σy = 137, Σx² = 14278, Σy² = 4991 and Σxy = 8277, what is the Pearson's correlation coefficient? Give your answer to two decimal places.

A. 0.65

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A wireless phone manufacturer currently sells 2,000 units per quarter at a price of $400. The estimated price elasticity of demand is -2.5.

The manufacturer is considering an increase in the price to $440.

What will this raise (+) or reduce (-) total revenue by? Give your answer in whole numbers.

A. reduce - 139000