Expert Answers to CIMA Exam BA1 Questions

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CIMA Certificate Fundamentals of Business Economics

Fundamentals of Business Economics

Last Update Jan 1, 2026
Total Questions : 468

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Questions 2

PetsPlus Pic. has outsourced its marketing operations to the recently established marketing firm MarketMe. MarketMe has devised and distributed an online survey on behalf of PetsPlus Pic, asking customers to

evaluate the products they purchase from the company.

An example of a question from the survey is as follows:

'What do you think of PetsPlus's decision to outsource its marketing operations to a marketing firm?

Which of the following best describes why this question will not yield good information for PetsPlus?

Options:

Relevance

Accuracy

Reliability

Cost efficiency

Discussion 0

Questions 3

.phone, a smartphone manufacturer, currently dominates the smartphone market.

Which of the following may explain why this is beneficial for the smartphone industry?

Options:

.phone's monopoly in the industry allows for better research and development, thus leading to better and more frequent technological advances

.phone's monopoly in the smartphone industry allows it to produce its phones at a more affordable price

.phone's monopoly allows the company to increase supply and therefore make smartphones more available, especially to those in developing markets

.phone's monopoly allows it to increase its own profits significantly, therefore benefiting the market as a whole

Discussion 0

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Questions 4

A railway franchise in north-eastern Messu Potami has recently changed hands, and is now being operated by the company IstClass. However, IstClass already operate the railway franchise in northwestern Messu

Potami.

Which of the following courses of action would be most appropriate for the government of Messu Potami to take?

Select ALL that apply.

Options:

Establish a regulatory body to prevent a regional monopoly

Rerun the franchise bidding process if it found that IstClass are imposing additional price rises due to the regional monopoly

Allow the regional monopoly to exist, increasing fare prices for passengers on trains in both north-western and north-eastern Messu Potami

Impose a uniform sales tax on all railway tickets which would equalise prices across the country

Immediately nationalise the railway network, ending all private franchises and thus any regional monopolies

Discussion 0

Questions 5

An example of forward vertical integration is