Chartered Accountancy, Institute of Chartered Accountants of Pakistan (Scheme 2025) · PRC · Pre-Requisite Competencies
ICAP PRC-3 Business and Economic Insights: mock exams and practice questions
150 original exam-style questions for ICAP PRC-3 Business and Economic Insights, with full timed mock exams in the real format and an explanation for every answer. Free for everyone until 31 January 2027.
- 150practice questions
- 6syllabus areas
- 2 hoursfull mock, like the real exam
ICAP PRC-3 exam format
2 hours, computer-based, 100 marks. Business and Economics components marked together; Scheme 2025 syllabus, sessions every two months. The pass mark is 50%.
| Section | Format | Marks |
|---|---|---|
| Business insights | 25 objective test questions × 2 marks (multiple choice, multiple response and numeric entry): organizations 6, operations 13, finance and ethics 6 | 50 |
| Economic insights | 25 objective test questions × 2 marks: microeconomics 12, macroeconomic concepts 4, policies and trends 9 | 50 |
| Total | 100 |
Syllabus areas covered
- A · Business organizations18 questions
- B · Business operations39 questions
- C · Business finance and ethics18 questions
- D · Economic principles and microeconomics36 questions
- E · Macroeconomics: basic concepts12 questions
- F · Economic policies and trends27 questions
Try 3 free ICAP PRC-3 questions
Real Fincora questions, with the full explanation. Sign up free for the full bank and timed mocks.
Sample question 1 · A · Business organizations
Jhelum Solar Systems (Pvt) Ltd publishes this statement on its website: "We design, install and maintain rooftop solar systems for homes and small businesses in central Punjab, giving every customer reliable power at a fair price and a same-week service visit." How should this statement be classified?
- A A vision statement
- B A SMART objective
- C A mission statement
- D A strategic business plan
Show the answer
Answer: C. A vision is a broad statement of what the business aspires to become in the long term. A mission states the business's purpose: what it does, for whom and how. Objectives turn the mission into specific, measurable targets.
Jhelum Solar's statement describes its activity (design, installation and maintenance of rooftop systems), its customers (homes and small businesses in central Punjab) and how it serves them (reliable power, fair price, quick service). That is a mission statement. It contains no measurable target or deadline, so it is not an objective.
Sample question 2 · B · Business operations
Zarnab Foods, a Lahore food company, has reorganised into three units: snacks, beverages and frozen foods. Each unit has its own production, marketing and finance staff, and each unit head is held accountable for that unit's profit. Which organizational structure has Zarnab Foods adopted?
- A A divisional structure organised by product
- B A functional structure organised by specialism
- C A matrix structure with project and function lines
- D A divisional structure organised by geography
Show the answer
Answer: A. A divisional structure groups activities into self-contained divisions, each with its own functional staff and a head accountable for its results. The basis of division can be product, geography or customer type.
Zarnab Foods' units are snacks, beverages and frozen foods, which are product lines, and each unit is a profit centre with its own production, marketing and finance staff. So this is a divisional structure organised by product.
Sample question 3 · C · Business finance and ethics
Hingol Sanitaryware Ltd, a listed company, needs Rs 400 million for a new kiln. Its directors want to raise equity in a way that offers new shares first to existing shareholders in proportion to their holdings, so that no shareholder's control need be diluted. Which source of finance meets this aim?
- A A rights issue
- B A placing with an investment fund
- C An issue of sukuk
- D Venture capital
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Answer: A. A rights issue is an offer of new ordinary shares to existing shareholders in proportion to their current holdings, usually at a discount to market price. A shareholder who takes up the rights keeps the same percentage of the company, so control is not diluted. Placings, public offers to new investors and venture capital all bring in new owners and dilute existing ones.
Practise ICAP PRC-3 the way you'll sit it
Timed mocks, a question navigator and flags, then your score by syllabus area so you know what to revise next.