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Fundamentals of Business Economics Questions and Answers

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Question 1

The following cash flows are for a capital project where the required rate of return is 8 percent

Calculate the NPV for the project. Give your answer to the nearest whole number

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Question 2

A government may try to reduce a balance of payments deficit on current account by using either expenditure-reducing policies or expenditure-switching policies.

Which of the following is an expenditure-reducing policy?

Options:

Devaluation of the exchange rate

Imposing tariffs and quotas on imports

Export subsidies

Higher income tax rates

Question 3

Select the best definition of the corporate governance of a company from the list below.

Options:

The structure and functions of the Board of a firm

The systems by which companies are directed and controlled

The composition and duties of the management of a company

The financial and non-financial performance of a company

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BA1 Exam Dumps : Fundamentals of Business Economics

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Fundamentals of Business Economics Questions and Answers

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