Question 1

Which of the following is correct regarding data? Data can be recorded as: (1) numbers. (2) symbols. (3) raw facts.
A) (1) only
B) (3) only
C) (1) and (2)
D) (1), (2) and (3)

Accepted Answer

The answer of Which of the following is correct regarding...

Question 2

A client agrees to invest $100,000 three years from now in a business project, and decides to deposit funds today in a bank account that pays 6 percent compound interest annually. How much does the client need to deposit in order to be able invest $100,000 in three years time?
A) $82,000
B) $83,961.93
C) $119101.6
D) $83,748.43

Accepted Answer

The answer of A client agrees to invest $100,000 three...

Question 3

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.

Accepted Answer

Equity financing refers to the process of raising capital through the sale of shares in a company.

Question 4

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.

Accepted Answer

Devaluing the exchange rate makes exports cheaper and imports more expensive, which can help to reduce a deficit in the balance of payments. Tariffs on imported goods can also help to reduce a deficit by making imported goods more expensive and encouraging consumers to buy domestic goods instead.

Question 5

Country A's tax system is one where every citizen pays tax on earned income over $12,000 per year. The amount of tax paid as a percentage of income rises as individuals income levels rise. Which of the following describes the nature of the tax paid by individuals in Country A?
A) Progressive
B) Regressive
C) Retentive
D) Proportional

Accepted Answer

The tax system in Country A is progressive because the tax rate increases as the income level of individuals rises.

Exam 3: BA1 - Fundamentals of Business Economics Question Tutorial

Which of the following is correct regarding data? Data can be recorded as: (1) numbers. (2) symbols. (3) raw facts.

A client agrees to invest $100,000 three years from now in a business project, and decides to deposit funds today in a bank account that pays 6 percent compound interest annually. How much does the client need to deposit in order to be able invest $100,000 in three years time?

What does the term 'equity financing' mean?

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.)

Country A's tax system is one where every citizen pays tax on earned income over $12,000 per year. The amount of tax paid as a percentage of income rises as individuals income levels rise. Which of the following describes the nature of the tax paid by individuals in Country A?