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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.
MakeHay are struggling to co-ordinate their different departments so that deadlines are hit. Two managers suggest different ideas to solve this issue.
Manager Smith suggests MakeHay open a new office who is responsible for co-ordinating the different departments, and would also have their own production targets.
Manager Jones suggests that opening another office would increase production, and so ensure deadlines are hit.
Why is neither manager correct?
The managing director of Polly's, a department store, has found that ten of its stores located in the south east of England have seen a significant fall in profit margin.
Which of the following is most likely to be the cause of this?
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?
Other things being equal, an increase in a country's balance of payments deficit on current account means that
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.
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.
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.
Organisations are able to achieve more than individuals can achieve because they allow people to do which THREE of the following?
Which of the following will result in an increase in demand for domestic currency?
Which of the following organisational arrangements is an example of a multinational corporation (MNC)?
Which of the following can be used by a national government as justification for introducing a protectionist trade policy?
Which TWO reasons support the argument that global firms may facilitate globalisation?
Which of the following best describes a project that has a negative Net Present Value?
Which of the following statements about the difference between profit and shareholder wealth is false?
A business would benefit most from an appreciation in the currency of the country in which it is based if:
The government of Country Z imposes a tariff on all imports of coal from other countries Which THREE of the following are possible effects of this decision in Country?
For a typical business, which of the following is NOT a potential benefit of globalisation?
Which of the following is correct in regards to organisations?
Organisations achieve more than individuals can achieve on their own because they enable people to
(1) share skills and knowledge
(2) maximise individuals' interests.
(3) specialise
(4) pool resources
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.
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.
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.
One of the features of an oligopoly market is that the pricing strategy of producers
Which of the following is most likely to increase rather than to reduce market imperfections?
Which ONE of the following is NOT a symptom of the principal-agent problem in company XYZ?
All of the following would provide justification for government competition authorities to investigate the businesses involved except one. Which ONE is the exception?
The market demand for a good has a price elasticity of demand of 0.4. Which of the following statements is correct?
Which ONE of the following conditions would lead to instability over time in the incomes of producers of primary products?
If a firm wishes to maximize market share without incurring a loss, it should set its price where
When a tax is imposed upon a commodity which the producers must pay to the government, this will cause the commodities?
XYZ plc has relocated its head office to a new site which enjoys better road communications and is close to a training college that teaches the skills needed to work at XYZ plc. Why will XYZ's costs fall?
All the following statements about small firms are correct except one. Which statement is incorrect?
Which of the following is an example of regulation as a form of government intervention in the economy?
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?
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 theory of the firm is described by the following statement?
'The decisions of management are the result of a political maneuvering of the various stakeholders connected to the organization.'
The Global Banking Crisis showed that banks had failed in all of the following ways except which ONE?
When central banks adopt a policy of 'quantitative easing' this means that they:
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.
Identify in the following list the statement that does not describe a function of a financial intermediary:
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?
Which of the following economic conditions is likely to lead to demand-pull inflation?
In a fully employed economy, which one of the following would lead to demand pull inflation?
All of the following are features of an economic union (for example, the European union) except which one?
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 was selling 20,000 units of its product per month at a price of $10. When it lowers its price to $9 it finds that its sales rise to 24,000 units per month.
The price elasticity of demand for this firm's product is
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 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'?
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.
TESTED 05 May 2024