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Identify which of the following features does not distinguish redeemable debt apart from equity:
The managing director of Polly's has been given a pie chart showing the current proportion of sales across the chain's five stores.
Which of the below are the most significant reasons why the pie chart is an inappropriate way of expressing this data?
Select ALL that apply.
The government has set a maximum house price due to a massive house price rise in the last decade. This is denoted by the line Q1Q2 on the graph.
Which of the following may occur in light of the introduction of the maximum house price as it appears on the graph?
Select ALL that apply.
Government X has just increased taxes in order to limit spending and hence demand.
Which of the following is most likely to have been the cause of this fiscal policy?
Which of the following might be regarded as benefits of the single currency, the Euro?
(i). Greater freedom for member countries to set their own interest rates
(ii). It is easier to compare prices of consumer goods in all countries using the Euro
(iii). A reduction in transactions costs for trade between countries using the Euro
(iv). Increased economic growth resulting from a more efficient common market
All of the following are arguments for privatizing a public sector industry except which one?
A company in Country M owns a subsidiary in Country O valued at OS200 million. The rate of exchange between the Country M dollar (M$) and the Country O dollar (OS) is OS1 - MS6
If the Country M S depreciated by 10% what would be the increase or decrease in the MS valuation of the subsidiary?
Give your answer in whole millions and indicate whether it is an increase or decrease.
Conflict between the objectives of shareholders and those of management in a company may anse because
Based on historical time series data, a chemicals company uses sales ($million) as the y variable and time (year) as the x variable and equation.
y = - 3935 47 + 2 02x
Using the equation, what is the company's predicted sales for the year 2020? Give your answer to the nearest million.
The distinguishing feature of a transnational (multinational) company is that
A clothes retailer has estimated a linear trend equation including trend, seasonal and cyclical components to forecast its sales for the next four quarters Which of the following factors would generate actual sales figures that are likely to differ markedly from the forecast?
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.
rson'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).
what is the Pearson's correlation coefficient? Give your answer to two decimal places.
A magazine currently has a circulation of 500,000 copies per year at a price of $5 per copy Following a market survey it has been suggested that the price of each copy should be reduced to $4 50. It is expected this will lead to an increase in circulation of 25.000 copies per year.
What is the price elasticity of demand of the magazine?
An investor has bought a financial asset that pays a variable interest rate at the end of a three-year period At the same time, the invest forward rate agreement (FRA) on an agreed forward rate of 3% at the asset's maturity. What is the advantage of the FRA?
Which of the following is the most likely cause of a demand deficient unemployment (or cyclical unemployment)?
A commercial airline uses its database to develop the following regression model to predict the cost of a flight Y (in dollars) by number of passengers:
Y = 1,570 +40 7x
Which of the following statements is correct in relation to the airline'?
Organisations are able to achieve more than individuals can achieve because they allow people to do which THREE of the following?
The following table reports are for five hotels belonging to the same hotel chain, the rank in terms of sales performance (with 1 - best average score obtained in customer reviews, and the rank in terms of average score from customer reviews (with 1 = best average ..
Calculate the Spearman's rank correlation coefficient to one decimal place:
Which ONE of the following statements best describes the impact of a government price floor (minimum price) set below free market price?
Which of the following is likely to cause the demand curve of margarine to shift to the left?
An estimation regression is developed to test the linear relationship between the size of student population at a university and monthly sales of a nearby bookshop The correlation coefficient is equal to 0.9.
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.
Assuming Country A has a floating exchange rate which of the following would lead to a fall of the exchange rate for Country A and which rise m the exchange rate for Country A.
Complete the table below by matching the relevant label on the exchange rate of the scenarios listed.
According to the principle of comparative advantage which of the following explains how country V may benefit from international trade?
A business sells 10,000 units of its product pet month at a unit price of $10 It reduces the pnce to $88,000 per unit As a result its total reviewed $88,000 per month. What is the price elasticity of demand for this product?
Which of the following types of graph uses cumulative frequency distributions to illustrate information?
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 government issues a security which promises to pay $100 per year indefinitely. What is it worth if the required rate of return is..
The following table shows the profits of a business and an index of the general price level for 4 years
How does the level of real (inflation adjusted) profits in 20X4 compare to those of 20X1 ?
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:
Which ONE of the following is regarded as a general characteristic of an organization?
Some not-for-profit organizations (NPOs) are required to show they are effective. Which one of the following most closely defines effective?
Dividend income from shares held overseas is recorded in which of the following balance of payments components?
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 a country were to join a currency union (for example, the European single currency, the Euro), its businesses would experience all of the following except which one?
What is described by the following definition 'the total accumulated amount the state owes to lenders in its own country and internationally'?
Following the emergence of the global banking crisis in 2007 many central banks undertook quantitative easing through purchasing bonds back from banks with new money. Which function of a central bank does this describe?
All of the following are appropriate policies to deal with the problem of industries which cause pollution except which one?
If a group of countries have adopted:
(i). Free trade in goods and services between member states,
(ii). Free movement of capital and labor between member states,
(iii). A common external tariff policy,
This would be an example of a(n)
All of the following will tend to increase the number of firms in any one industry except which one?
If the price elasticity of supply for a good over a certain price range is 0.8, the increase in the quantity supplied of that good, following a 10% increase in its price, will be
A shift in the supply curve for a good will have the biggest effect on the market price when the demand curve for the good
The market demand for a good has a price elasticity of demand of 0.4. Which of the following statements is correct?
Which of the following is most likely to increase rather than to reduce market imperfections?
Based on the past twenty months, an event decorating company develops a trend equation for forecasting sales revenue (y) where y = 4.38 + 1.32x.
If month 21 has a seasonal factor of times 1.07, then what is the forecast for the month, using a multiplicative model? Give your answer to two decima places.
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: $
All the following statements relate to an increase in government spending which is not accompanied by an increase in taxation. Which statement is NOT correct?
If a country joined an economic union (for example, the European Union) its business sector could benefit from all of the following except which one?
Which of the following would not be a reason for a government to impose a quota on imports?
The consequences of globalization for national economies include all of the following except which one?
Which of the following will be characteristics of the stakeholders most able to influence the management of an organization?
Which of the following would result from a depreciation in the exchange rate for a country's currency?
i. A fall in the foreign exchange price of that country's exports.
ii. A rise in the foreign exchange price of that country's imports.
iii. A rise in production costs for businesses using imported inputs.
iv. A worsening in that country's terms of trade.
v. A fall in the domestic prices of that country's imports.
vi. A rise in the domestic price of that country's exports.
A country has a trade deficit. The demand for its imports and exports are both price elastic. All of the following would lead to an a reduction in the country's trade deficit except which one?
A rise in interest rates in an economy would lead to all of the following except which one ?
If an economy went into a recession, which industry would experience the largest proportionate fall in sales, output and employment?
In a recession, the central bank might adopt a policy of low interest rates. The businesses most likely to benefit from this are those which:
Which global institution is concerned with co-coordinating economic policies and agreeing banking and financial regulations?
Which of the following is not a consequence of a country suffering a high rate of inflation?
A country's gross national product (GNP) will be higher than gross domestic product (GDP) if:
Which ONE of the following should NOT be classed as an agent of a firm's shareholder?
All of the following are features of an economic union (for example, the European union) except which one?
All of the following are typical features of the downswing phase of the trade cycle except one. Which ONE is the exception?
The equilibrium level of national income in an economy is the level of income at which
Peter holds his current and savings accounts with Western Mutual.
Which of the following is a benefit that Peter should expect to enjoy from possessing accounts with Western Mutual?
Which THREE of the following businesses are more likely to fare belter during a recession?
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 railway franchise in north-eastern Messu Potami has recently changed hands, and is now being operated by the company IstClass. However, IstClass already operate the railway franchise in northwestern Messu
Potami.
Which of the following courses of action would be most appropriate for the government of Messu Potami to take?
Select ALL that apply.
Brine Bank is facing a liquidity crisis.
Which of the following should the central bank NOT do in response to this?
Select all that apply.
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?
Which of the following are reasons why the principal-agent problem is so critical for businesses? Select ALL that apply.
RubTech has decided to build a new rubber production facility just outside the semi-rural town of Pettisbury. The majority of workers at the plant are to be sourced from abroad.
Which of the following could potentially be negative externalities of the decision to build the production facility?
A trade agreement that removes all import tariffs between member countries, sets up common external tariffs against non-members, but does not advance toward economic integration is called
Company X's government has a fiscal surplus. However, this has led to less investment in Company X's economy and an increased rate of unemployment.
Which of the following best describes how a fiscal surplus might be achieved, and why it may be necessary for a government to achieve one?
Pills Pharmaceuticals has founded a new department which focuses on big data analysis. The organisation plans to perform this analysis using data collected by two subsidiaries, one based in London and the other in San Francisco.
Which of Gartner's 'Three Vs' is applicable to this scenario?
TrowPlan Ltd. is planning on growing their business through expanding their real estate holdings. In order to do this, they have taken out a bank loan of £2 million. This loan is to be repaid by TrowPlan Ltd. over a period of
14 years with an interest rate of 10%. However, there are rumours of recession in the banking sector, and the economic uncertainty caused by Britain's vote to leave the EU continues to decrease the value of pound
sterling.
In these circumstances, which of these options would be the least suitable course of action for TrowPlan Ltd. to take?
Select ALL that apply.
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?
Atu, a new social media platform, has launched an advertising campaign directed at areas of Country X where there is a higher proportion of young people than elsewhere.
Which source is most likely to have been used by Atu to acquire this data?
A bottle of brandy costs £25 in Country X, including both unit tax and ad valorem tax. These taxes are applied throughout the production process.
Which of the following applies to this particular scenario? Select ALL that apply.
Country X is a country highly reliant on its oil exports. However, in recent months, oil prices have fallen by 20%. It is located near Country Y, an oil exporter which is a member of a trading bloc. Country X has some coal reserves, but faces stiff competition from Country Z, a member of the trading bloc, which also exports coal.
Which of the following would be the most effective way for the government to alleviate these circumstances?
Select ALL that apply.
'The £ has risen against other currencies since August, defying forecasters who thought that the UK's widening trade deficit must cause the £'s exchange rate to fall.'
From the above information, it can be concluded that, since August
The interest rate at TrowBank is currently running at 7%. The number of customers borrowing to invest has fallen drastically.
Which of the following explains why this is the case?
Select ALL that apply.
The manger of a branch of retailer Brilliant Buys wants to calculate the correlation between employee happiness and productivity. He has ranked each of the 10 employees at his branch in both fields, as shown to the left.
What degree of correlation is there between productivity and happiness at Brilliant Buys, using Spearman's coefficient?
Company X's government has seen the the balance of payments deficit steadily rising while they have been in power.
Which of the following would be a good policy to implement to counteract this?
i-Songs is about to launch a service that sells downloaded music and video files. Downloads have MC = 0 . Which ONE of the following would maximize i-Songs' profits?
If the government imposed a legal minimum wage that was above the market equilibrium wage, the resulting unemployment would be the greatest when:
All of the following factors contribute to the instability of agricultural prices except which ONE?
Which ONE of the following statements about the 'divorce of control from ownership' is true?
All of the following would tend to lead to an industry being dominated by a small number of firms except one. Which ONE is the exception?
Which ONE of the following circumstances is essential if producer incomes are to rise following the imposition of a price floor (minimum price) in a market?
One of the features of an oligopoly market is that the pricing strategy of producers
A business is selling a good with a price inelastic demand. If it decreases the supply of the good the result will be:
A train company acknowledges that externalities may reduce the welfare of its customers when it provides
The government may wish to control horizontal mergers between firms because
In the short run, which of the following would result from a depreciation of the country's exchange rate?
(i). Increased competitiveness of the country's exports
(ii). Increased quality competitiveness of the county's imports
(iii). A worsening of the country's terms of trade
(iv). Increased energy and raw material costs for the country's manufacturing firms
Which of the following is not a reason for a firm to issue bonds rather than ordinary shares to raise additional finance?
A government can finance a budget deficit by:
i. increasing taxation rates.
ii. Reducing government expenditure.
iii. Selling long term government bonds.
iv. Issuing Treasury Bills.
v. Raising interest rates.
vi. Reducing transfer payments.
Which of the following is not a source of long-term capital for a company?
Which one of the following would lead to a fall (depreciation) in the exchange rate for a country's currency?
Lenders normally wish to offer their funds for the short term, but most borrowers prefer to borrow over the long term. Resolving this mismatch is known as:
Identify the source of funds most appropriate for a growing company to use which wishes to borrow funds long-term to pay for initial marketing research and promotion?
£100 of new cash is issued, which is then deposited in a bank which is part of a banking system operating a cash ratio of 10%. The maximum possible increase in the money supply which can follow from this transaction, additional to the initial deposit, is
Which of the following pairings of policy instruments and policy objectives is correct?
A government receives some direct tax once a year and many firms pay over the indirect tax they owe quarterly. However, payments to government employees are made at the same rate every month.
Which asset does a government use to overcome this lack of synchronization between payments and receipts?
Identify in the following list the statement that does not describe a function of a financial intermediary:
Which ONE of the following would be expected to reduce the net present value of a proposed investment project?
A rise in
All of the following were features of the financial crisis of 2008 except one. Which ONE is the exception?
All of the following were contributory causes of the banking crisis of 2008 (the 'credit crunch') except one. Which ONE is the exception?
A financial intermediary takes the small deposits of millions of savers and uses them to buy an issue of government (treasury) bills and bonds.
Identify from the list below the principle this illustrates:
TESTED 12 Sep 2025
