Free CIMAPRO17-BA1-X1-ENG Exam Braindumps
BA1 - Fundamentals of Business Economics Question Tutorial Questions 11–15 (page: 4)

Updated On: 9-Feb-2026

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?

  1. A drop in sales due to emergency roadwork blocking access to the store.
  2. A drop in sales due to the ongoing economic recession.
  3. An increase in sales due to the increasing popularity of their brand.
  4. An increase in sales before a major religious festival.

Answer(s): D



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?

  1. Т
  2. E
  3. S
  4. P

Answer(s): C


Reference:

https://thecimastudent.com/2018/02/15/using-pestel-analysis/



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?

  1. Economic risk
  2. Energy risk
  3. Transaction risk
  4. Translation risk

Answer(s): D


Reference:

https://webcache.googleusercontent.com/search?q=cache:rUr_SO58tB8J:https://www.acowtancy.com/textbook/cima-ba1/d3-impact-of-changes-in-interest-and-exchange-rates-on-controllingand-measuring-business-performance/impact-of-exchange-rate-changes/notes+&cd=1&hl=en&ct=clnk&gl=pk&client=opera



FILL BLANK
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.

Calculate the coefficient of determination to two decimal places:

  1. 0.31

Answer(s): A



A manufacturing company is considering a new investment project.
Which TWO of the following would reduce the net present value of the investment to the business? (Choose two.)

  1. A rise in the scrap value of the project at the end of its life.
  2. A reduction in the expected level of future sales.
  3. A rise in interest rates.
  4. A fall in the initial capital cost of the project.
  5. An expected fall in the future price of components used by the business.

Answer(s): C,E



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