BA1 - Fundamentals of Business Economics Certification Exam Questions with AI Explanations

All of the following are regarded as objectives of profit seeking organizations except one.
Which ONE is the exception?

Answer(s): C

Which ONE of the following increases the price of the shares in ABC plc?

Answer(s): D

Which ONE of the following is NOT required in calculating the EPS of ABC plc?

Answer(s): A

Which of the following would lead to an increase in a firm's share price?

Management announces that profits are still rising in line with the forecasts in its published 5 year plan
Management announces that profits will be higher than had previously been forecast
A rise in the rate of interest available from investing in government securities
Management announces that new laws on working conditions have forced them to close a profitable factory earlier than had been expected

Answer(s): B

Which of the following best describes a project that has a negative Net Present Value?

A loss making project
A project that doesn't make enough profit to pay the interest on the money borrowed to invest in it
A project that doesn't make sufficient returns to fully compensate investors for the funds they invest in it
A project that will only start making profits after the present year has finished

Answer(s): C

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