Cima E1 Exam Question No 5

Question no 5:

With reference to an entity paying tax; which of the following is the best defi nition of
competent jurisdiction
A. The country whose laws apply to the entity
B. Any country where the entity has operations
C. Any country where the entity has an offi ce
D. Any country where the entity has employees

Answer: A

Cima E1 Exam Question No 4

Question No 4:

What is  The 4 Vs of operations?

Answer:

Volume
Variety
Variation in demand
Visibility

Volume of inputs
Variety of inputs
Visibility to its customers

Cima E1 Exam Question No 3

Question No 3:

What is PEST(EL) analysis?

Answer:

For analyzing the MACRO environment

1.  Political
2.  Economic
3.  Social
4.  [Population demographics
5.  Income distribution
6.  Social mobility
7.  Lifestyle changes
8.  Consumerism
9.  Education levels]
10. Technical
11. Ecological
12. Legal

Cima E1 Exam Question No 2

Question No 2:

An indirect tax is a tax that:

A. Is levied directly on an individual
B. Is based on earnings of an individual
C. Is paid indirectly to the tax authorities
D. Is levied on one person with the intention that it is passed on to another

Answer: D

Cima E1 Exam Question No 1

Question No 1:

Which of the following is NOT one of Adam Smith's characteristics of a good tax?

A. Equity
B. Certainty
C. Simplicity
D. Efficiency

Answer: C