Vce BA1 Questions Latest

Fundamentals of Business Economics Questions and Answers

Question 45

The equilibrium level of national income in an economy is the level of income at which

Full employment occurs

There is zero inflation

Total planned spending equals the supply of output available

The government's budget and the balance of payments are both exactly balanced

Question 46

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

Raising shareholder wealth

Long term growth in sales

Meeting regulatory, accounting and reporting standards

Maximizing profit

Question 47

Which of the following is not taken into account by the discount factor applied to future earnings when calculating shareholder value?

Shareholders rate of time preference for money

The amount of earnings that will be lost as taxation

The amount of risk the investment is subject to

The rate of inflation

Question 48

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

The market price of ABC's share

The number of shares ABC has in issue

The most recent earnings after interest and tax of ABC

The dividend payment made to holders of preference shares