Course Overview

From the growth of economic welfare to the open economy, this CIMA paper in the Fundamentals of Business Economics covers the subject in depth and breadth. It is part of the qualification to become a member of the Chartered Institute of Management Accountants (CIMA).

This internationally recognised and respected body offers one of the most highly-regarded qualifications available in the field of accountancy.

Pre-requisites

A 'Flexible Entry' policy is in place, meaning that there are no minimum entry requirements, but students will need a good standard of maths and be competent in the English Language.

Qualification

CIMA Paper 4: Fundamentals of Business Economics

Support and Benefits

• Gain an internationally recognised qualification to enhance your career opportunities
• CIMA approved study materials including exam practice questions
• Access to a dedicated tutor and student advisors to guide you through your studies

Key Topics

• The Goals and Decisions of Organisations

Understand the differing goals of profit-seeking organisations, not-for-profit organisations and governmental organisations. Examine the effects of long-run cost behaviour. Study shareholder wealth and the differing goals of management and shareholders. Learn the main mechanisms of improving corporate governance in profit-seeking organisations. Consider the impact of stakeholders on the goals of not-for-profit organisations.

• The Market System and the Competitive Process

Examine consumer behaviour and demand, and consider the price elasticity of demand and the price elasticity of supply. Study market concentration and the factors giving rise to differing levels of concentration between markets. Consider market failures and their effects. Explore the different nature of competition in different market structures.

• The Financial System

Consider the factors leading to liquidity surpluses and deficits in households, firms and governments. Examine the role of various financial assets, markets and institutions in assisting organisations to manage their liquidity position. Study the role of insurance markets. Consider the role of national and international governmental organisations in regulating and influencing the financial system.

• The Macroeconomic Context of Business

Examine macroeconomic phenomena and the main measures and indicators of a country’s economic performance. Study the different stages of the trade cycle. Consider the main principles of public finance and macroeconomic policy. Explore the conditions and policies necessary for economic growth. Examine globalisation and the major institutions promoting global trade and development.

Course Code

M03

Hours of Study

130 hours per paper

Technical requirements and Fees

CIMA registration and exam fees are additional to the course fees.

Outline

You’ll complete three formative assessments (set by ICS) during your course and one final exam (set by CIMA) on completion of your course. The formative assessments can be submitted to ICS online via the Student Community, or they can be posted to ICS. It is recommended that you submit your formative assessments online as you will receive your results more quickly this way

Assessment Breakdown

• Formative Assessment 1: 10 multiple choice questions and 4 scenario-based questions
• Formative Assessment 2: 10 multiple choice questions and 4 multi-part short answer questions
• Formative Assessment 3: a mock exam
• Final Exam: a computer-based exam consisting of 50 questions which must be completed within 2 hours

Notes

Each multiple choice question comes with four potential answers. Only one of these answers is correct; the other three are wrong. You must identify the correct answer.

Scenario-based questions test that you can apply the knowledge you have learnt from the course to hypothetical scenarios. These questions are typically multi-part.

For each part of a short answer question you are normally required to write between a sentence and a paragraph.

The exam is available all year round and can be sat at your local testing centre.

Please note that you are required to register with CIMA in order to sit the exam.

Please note that the format of the exam is subject to change. The details provided are intended only as a guide and should not be regarded as definitive.