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CIMA Exam CIMAPRA17-BA1-1 Topic 1 Question 90 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam
Question #: 90
Topic #: 1
[All CIMAPRA17-BA1-1 Questions]

Which of the following describes the effect an interest rate rise may have on a company?

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Suggested Answer: C

by Sean at Jun 21, 2024, 07:22 AM

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Sylvia
30 days ago
Hold up, does option D mean the company gets to store their money in the fridge to save on electricity? Genius!
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Arthur
1 months ago
B? What kind of fantasy land is this question living in? Sales increase with stable incomes? Psh, yeah right.
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Darnell
7 days ago
B? What kind of fantasy land is this question living in? Sales increase with stable incomes? Psh, yeah right.
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Diane
10 days ago
C) The cost of financing projects through loans will increase
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Ashlyn
17 days ago
A) Prices will have to increase due to increased inflationary pressures
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Nichelle
1 months ago
I believe option A is incorrect, as prices may not necessarily have to increase due to inflation.
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German
1 months ago
But wouldn't option A also be affected by an interest rate rise?
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Javier
2 months ago
Hmm, I'd say A and C both apply. Prices would have to rise to offset the higher costs, and loans would become more expensive.
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Ashton
8 days ago
Lakeesha: It's a tough situation for businesses to navigate.
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Tamesha
11 days ago
User 3: So true, they have to deal with higher costs and less affordable financing.
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Lakeesha
1 months ago
User 2: Yeah, it's a double whammy for companies when interest rates rise.
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Mohammad
1 months ago
User 1: I think A and C make sense. Prices will go up and loans will cost more.
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Derick
2 months ago
I'm going to go with option C as well. Increased financing costs are the most obvious impact of rising interest rates.
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Rene
28 days ago
Yeah, higher financing costs can really eat into profits. It's a tough situation to navigate.
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Lenna
1 months ago
Option C is definitely the most direct impact of rising interest rates on a company.
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Dallas
2 months ago
I agree with Lizbeth, because higher interest rates mean higher loan costs.
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Lizbeth
2 months ago
I think the answer is C.
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Ora
2 months ago
Definitely C. When interest rates rise, the cost of borrowing money for projects will go up, plain and simple.
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Xuan
2 months ago
A) Prices will have to increase due to increased inflationary pressures
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Marylyn
2 months ago
That's true, higher interest rates mean higher borrowing costs.
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Nicholle
2 months ago
C) The cost of financing projects through loans will increase
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