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Vendor: CIMA
Exam Code: CIMAPRO17-BA1-X1-ENG
Exam Name: BA1 - Fundamentals of Business Economics Question Tutorial
Certification: CIMA Certifications
Total Questions: 60 Q&A
Updated on: Dec 11, 2024
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Which of the following organizational arrangements is an example of a multinational corporation (MNC)?
A. An insurance company based in Country E opens a sales office in Country F in order to service the local market.
B. A music production company based in Country C signs a contract with an artist's management company based in Country D.
C. A retailer based in Country G uses an online retail platform in order to sell goods to customers in Country H.
D. A chain of restaurants based in Country signs a franchise agreement with a company that intends to open restaurants in Country A.
What does the term 'equity financing' mean?
A. A company financing a short term cash flow shortage by borrowing from a financial intermediary.
B. A company investing its excess liquidity by purchasing shares.
C. A company selling off some of its tangible assets to pay for debts.
D. A company financing its liquidity deficit by issuing shares.
Which TWO of the following policy actions might be available to a government that wishes to reduce a deficit in the balance of payments? (Choose two.)
A. Devaluate the exchange rate in order to increase exports.
B. Increase the money supply in order to stimulate domestic consumption.
C. Appreciate the exchange rate in order to reduce imports.
D. Reduce the interest rate in order to stimulate investment.
E. Introduce tariffs on imported goods in order to favour domestic producers.
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