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CIMA BA1 Fundamentals of Business Economics — Information & Free Practice

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About CIMA BA1 Fundamentals of Business Economics

CIMA BA1 Fundamentals of Business Economics · GB

Key exam facts

Provider
CIMA (Chartered Institute of Management Accountants) owns the Certificate examination; Pearson VUE delivers the computer-based assessment.
Format
On-demand computer-based Objective Test, available at test centres and online where offered.
Exam questions
Total questions: 60.
Time limit
120 minutes (two-hour assessment).
Passing score
Scaled score of 100 out of 150; this is not a raw percentage.
Exam fee
UK Tier 1: GBP 123 per Certificate Objective Test from 1 January 2026; GBP 128 from 1 January 2027. Registration, subscription and study costs are separate.

Topics covered

  • Macroeconomic and Institutional Context of Business (25%)

    • Explain the principal factors that affect the level of a country’s national income and the impact of changing economic growth rates and prices on business.
    • Explain determination of macroeconomic phenomena, including equilibrium national income, growth in national income, price inflation, unemployment, and trade deficits and surpluses
    • Explain the stages of the trade cycle and the consequences of each stage for the policy choices of government
    • Explain the main principles of public finance (i.e. deficit financing, forms of taxation) and macroeconomic policy
    • Describe the impacts on business of potential policy responses of government, to each stage of the trade cycle
    • Calculate indices for price inflation and national income growth using either base or current weights and use indices to deflate a series
    • Explain the factors affecting the trade of a country with the rest of the World and its impact on business.
    • Explain the concept of the balance of payments and its implications for government policy
    • Identify the main elements of national policy with respect to trade
    • Explain the impacts of exchange rate policies on business
    • Explain the influences on economic development of countries and the effects of globalisation on business.
    • Explain the concept of globalisation and the consequences for businesses and national economies
    • Explain the role of major institutions promoting global trade and development
    • Identify the impacts of economic and institutional factors using the PESTEL framework

  • Microeconomic and Organisational Context of Business (30%)

    • Distinguish between the economic goals of various stakeholders and organisations.
    • Distinguish between the goals of profit seeking organisations, not-for- profit organisations and governmental organisations
    • Explain shareholder wealth, the variables affecting shareholder wealth, and its application in management decision making
    • Distinguish between the potential objectives of management, shareholders, and other stakeholders and the effects of these on the behaviour of the firm
    • Demonstrate the determination of prices by market forces and the impact of price changes on revenue from sales.
    • Identify the equilibrium price in product or factor markets
    • Calculate the price elasticity of demand and the price elasticity of supply
    • Explain the determinants of the price elasticities of demand and supply
    • Calculate the effects of price elasticity of demand on a firm’s total revenue curve
    • Explain the influence of economic and social considerations on the structure of the organisation and the regulation of markets.
    • Identify the influence of costs on the size and structure of the organisation
    • Explain the sources of market failures and the policies available to deal with them

  • Informational Context of Business (20%)

    • Apply techniques to communicate business data as information to business stakeholders.
    • Explain the difference between data and information and the characteristics of good information
    • Identify relevant data from graphs, charts and diagrams
    • Demonstrate the uses of big data and analytics for understanding the business context.
    • Describe the principal business applications of big data and analytics
    • Demonstrate the relationship between data variables
    • Demonstrate trends and patterns using an appropriate technique
    • Prepare a trend equation using either graphical means or regression analysis
    • Identify the limitations of forecasting models

  • Financial Context of Business (25%)

    • Explain the functions of the main financial markets and institutions in facilitating commerce and development.
    • Explain the role of various financial assets, markets and institutions in assisting organisations to manage their liquidity position and to provide an economic return to providers of liquidity
    • Explain the role of commercial banks in the process of credit creation and in determining the structure of interest rates and the roles of the ‘central bank’ in ensuring liquidity
    • Explain the role of the foreign exchange market in facilitating trade and in setting exchange rates
    • Apply financial mathematical techniques in a business decision-making context.
    • Calculate future values of an investment using both simple and compound interest
    • Calculate the present value of a future cash sum, an annuity and a perpetuity
    • Demonstrate the impact of changes in interest and exchange rates on controlling and measuring business performance.
    • Describe the impact of interest rate changes on market demand and the costs of finance
    • Calculate the impact of exchange rate changes on export and import prices and the value of the assets and liabilities of the business
    • Explain the role of hedging and derivative contracts in managing the impact of changes in interest and exchange rates

How to prepare

Work through the topics, read the explanation after each answer, and revisit the areas where you miss questions. Use the official outline and reference materials below to guide your study.

These independent practice questions are not actual exam items and do not guarantee a passing result.

Frequently asked questions

What is the exam format?

On-demand computer-based Objective Test, available at test centres and online where offered.

How many questions are on the exam?

Total questions: 60.

How long is the exam?

120 minutes (two-hour assessment).

What is the passing score?

Scaled score of 100 out of 150; this is not a raw percentage.

How much does the exam cost?

UK Tier 1: GBP 123 per Certificate Objective Test from 1 January 2026; GBP 128 from 1 January 2027. Registration, subscription and study costs are separate.

Official sources and references

Confirm current exam arrangements with the exam provider.