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QUESTION NO: 1
The managing director of Polly's, a department store, has found that ten of its stores located in the south east of England have seen a significant fall in profit margin.
Which of the following is most likely to be the cause of this?
A. An increase in footfall at these stores
B. An increase in rent for the premises in which the store is located
C. A decrease in rent for the premises in which the store is located
D. A decrease in sales at these stores
Answer: B
QUESTION NO: 2
In a recession which ONE of the following would be likely to experience the largest fall in demand for its products?
A. A motor insurance company
B. A toothpaste manufacturer
C. A chain of supermarket grocery stores
D. A manufacturer of industrial machine tools
Answer: D
QUESTION NO: 3
Which ONE of the following is NOT an example of a long term financial need?
A. The financing of house purchase through a mortgage
B. Private saving to finance a pension
C. The need for working capital in small businesses
D. The financing of business investment
Answer: C
QUESTION NO: 4
If central bankers wished to agree and implement new measures to assure the security of global banks, which ONE of the following bodies would they use?
A. The WTO
B. The IMF
C. The World Bank
D. The G20
Answer: D
QUESTION NO: 5
The main purpose of government competition policy is to
A. Restrict anti-competitive behavior by firms
B. Limit the ability of firms to secure long run excess profits
C. Prevent mergers between large companies
D. Enforce competition by breaking up large firms
Answer: A
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Updated: May 28, 2022