ETS MAJOR FIELD TEST IN BUSINESS PRACTICE
EXAM QUESTIONS WITH CORRECT ANSWERS
GRADED A+
Which of the following statements about a systems flowchart is true?
(A) It is used in systems design to define and describe each piece of data.
(B) It is a method of writing programs using only three basic constructs:
sequence, selection, and repetition.
(C) It documents the sequence of processing steps that take place in an
information system.
(D) It documents the logical design of an information system. --CORRECT
ANSWER--(D) It documents the logical design of an information system.
Which of the following statements about the tort of negligence is true?
(A) It cannot be used as a basis for liability for defective products.
(B) It is a strict liability tort with no defenses.
(C) It requires proof of some intentional conduct.
(D) It requires proof of breach of a statutory or common-law duty. --CORRECT
ANSWER--(C) It requires proof of some intentional conduct.
Page 1 of 78
,On May 31, Company O's general ledger shows a cash balance of $5,123. The
May 31 bank statement shows a balance of $4,905. Other information is
available as follows:
1. A May 31 deposit of $300 does not appear on the bank statement; but a $3
service charge does.
2. A customer's $40 insufficient funds check has been returned with the bank
statement.
3. Outstanding checks of $10, $15, and $100 are identified on May
What is the correct cash balance on May 31?
(A) $4,905
(B) $5,080
(C) $5,166
(D) $5,204 --CORRECT ANSWER--(B) $5,080
Cash Balance 5,123.00
Service charge (3.00)
NSF Check from customer (40.00)
Correct cash balance 5,080.00
Page 2 of 78
,Within the context of the capital asset pricing model (CAPM), the risk measure
known as beta is often computed by regressing the return of the company's
stock against the
(A) return on the company's bonds
(B) return on the market portfolio
(C) change in the gross domestic product
(D) change in the consumer price index --CORRECT ANSWER--(B) return on
the market portfolio
A project consists of 150 jobs. The expected completion time for each job is
given in days. The project has three critical paths with two jobs in common, J
and K. In order to finish the project one day early, the completion time should
be reduced one day for
(A) each of the 150 jobs
(B) each of the jobs on the three critical paths
(C) either Job J or Job K
(D) both Job J and Job K --CORRECT ANSWER--(C) either Job J or Job K
The Organization of the Petroleum Exporting Countries (OPEC) reduces
production by 10 percent, and the growth rate of the world economy begins to
escalate. How will the simultaneous occurrence of these events affect the
equilibrium price and quantity in the world petroleum market?
Page 3 of 78
, (A) Price will increase, but quantity will remain unchanged.
(B) Price will increase, but quantity is indeterminate.
(C) Quantity will increase, but price is indeterminate.
(D) Both price and quantity will increase. --CORRECT ANSWER--(B) Price
will increase, but quantity is indeterminate.
In marketing research, a firm might consider using secondary data over primary
data because
a) secondary data usually cost less
b) secondary data are usually more accurate
c) primary data are usually non specific
d) primary data are likely to be outdated --CORRECT ANSWER--a) secondary
data usually cost less
In organizational decision making, managers are able to exercise the greatest
degree of discretion in the
a) enforcement of internal policies
b) settlement of legal disputes
c) restructuring of outstanding loans
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EXAM QUESTIONS WITH CORRECT ANSWERS
GRADED A+
Which of the following statements about a systems flowchart is true?
(A) It is used in systems design to define and describe each piece of data.
(B) It is a method of writing programs using only three basic constructs:
sequence, selection, and repetition.
(C) It documents the sequence of processing steps that take place in an
information system.
(D) It documents the logical design of an information system. --CORRECT
ANSWER--(D) It documents the logical design of an information system.
Which of the following statements about the tort of negligence is true?
(A) It cannot be used as a basis for liability for defective products.
(B) It is a strict liability tort with no defenses.
(C) It requires proof of some intentional conduct.
(D) It requires proof of breach of a statutory or common-law duty. --CORRECT
ANSWER--(C) It requires proof of some intentional conduct.
Page 1 of 78
,On May 31, Company O's general ledger shows a cash balance of $5,123. The
May 31 bank statement shows a balance of $4,905. Other information is
available as follows:
1. A May 31 deposit of $300 does not appear on the bank statement; but a $3
service charge does.
2. A customer's $40 insufficient funds check has been returned with the bank
statement.
3. Outstanding checks of $10, $15, and $100 are identified on May
What is the correct cash balance on May 31?
(A) $4,905
(B) $5,080
(C) $5,166
(D) $5,204 --CORRECT ANSWER--(B) $5,080
Cash Balance 5,123.00
Service charge (3.00)
NSF Check from customer (40.00)
Correct cash balance 5,080.00
Page 2 of 78
,Within the context of the capital asset pricing model (CAPM), the risk measure
known as beta is often computed by regressing the return of the company's
stock against the
(A) return on the company's bonds
(B) return on the market portfolio
(C) change in the gross domestic product
(D) change in the consumer price index --CORRECT ANSWER--(B) return on
the market portfolio
A project consists of 150 jobs. The expected completion time for each job is
given in days. The project has three critical paths with two jobs in common, J
and K. In order to finish the project one day early, the completion time should
be reduced one day for
(A) each of the 150 jobs
(B) each of the jobs on the three critical paths
(C) either Job J or Job K
(D) both Job J and Job K --CORRECT ANSWER--(C) either Job J or Job K
The Organization of the Petroleum Exporting Countries (OPEC) reduces
production by 10 percent, and the growth rate of the world economy begins to
escalate. How will the simultaneous occurrence of these events affect the
equilibrium price and quantity in the world petroleum market?
Page 3 of 78
, (A) Price will increase, but quantity will remain unchanged.
(B) Price will increase, but quantity is indeterminate.
(C) Quantity will increase, but price is indeterminate.
(D) Both price and quantity will increase. --CORRECT ANSWER--(B) Price
will increase, but quantity is indeterminate.
In marketing research, a firm might consider using secondary data over primary
data because
a) secondary data usually cost less
b) secondary data are usually more accurate
c) primary data are usually non specific
d) primary data are likely to be outdated --CORRECT ANSWER--a) secondary
data usually cost less
In organizational decision making, managers are able to exercise the greatest
degree of discretion in the
a) enforcement of internal policies
b) settlement of legal disputes
c) restructuring of outstanding loans
Page 4 of 78
