MFT – Business Exam – Questions and Solutions – 2025/2026
Branches of the Federal Government - correct answer ✔✔ Executive, Legislative, Judicial
Treaties - correct answer ✔✔ are compacts or agreements made between our nation and other
nations of the world
Financial Ratio Analysis: Debt Ratio - correct answer ✔✔ Debt ratio= total debt/total assests
key elements of a binding contract - correct answer ✔✔ Competent Parties (not drugged,
mentally impared, etc.)
Minors (must be 18)
Consideration(each side must contribute something of value)
Mutual Assent (each side must be clear-write it down)
Whistle-blowing - correct answer ✔✔ Exposing an employer's wrongdoing to individuals
outside the organization/company. Thee outsiders may be the media or government regulators
What did the Securities act of 1935 do? - correct answer ✔✔ -Established the SEC securities and
exchange commision with the explicit authority to establish
-The rules, standards and procedures used to account for transactions and events
-Also to establish the form and content of published financial reporting
Attribution Theory - correct answer ✔✔ Making inferences about the causes of a n individuals
behavior
Ex: Internal-failure due to self motivation
External-failure due to factors beyond control: luck, resources
,Statutes - correct answer ✔✔ Written laws enacted by the legislative branch of either the
federal or state governments
Tuckman's stages of team development (4) - correct answer ✔✔ 1. Forming-orientation break
the ice
2. Storming-marked by conflict disagreement
3. Norming- establishment of order and cohesion
4 Performing- marked by cooperation and problem solving
Federal sentencing guidelines for organizations - correct answer ✔✔ Passed by congress in 1991
focused ib guidelines for organizations, they were exempt from extreme penalties if one of
there employees acted unethically
Individualism - correct answer ✔✔ Extent that people value independence and person
uniqueness. Individualists tend to value personal freedom, self-sufficiency, control over
themselves, being appreciated for unique qualities
4 types of costs: - correct answer ✔✔ Product cost, Direct cost (allconst incutted by a compan,
and overhead
Moral Philosophy: Deontology - correct answer ✔✔ focuses on the preservation of individual
rights and on the intentions associated with a particular behavior rather than on its
consequences
Leader member exchange - correct answer ✔✔ Belief that leadership is individualized for each
subordinate. each dyad involves a unique exchange independent of other dyads. Puts
employees into either in-group or out-group categories
The US court system is developed from - correct answer ✔✔ English common law
, Statement of equity (capital) - correct answer ✔✔ Statement of Equity (capital)
bridge between the income statement and the balance sheet.
Arrangement depends on type of organization:
Proprietorship: Statement of Owners Equity
Partnership: Statement of Partners Equity
Corporation: Statement of Stockholders Equity
In addition, it contains:
Investments by Owners
Distribution to owners
Adam Smith - correct answer ✔✔ Division of Labor 1776:
Tasks are subdivided into individual jobs
Employees perform only the tasks relevant to their specialized function
Jobs tend to be small, but they can be performed efficiently
Proposes that production can be increased by dividing labor on to similar tasks
Henri Favol - correct answer ✔✔ 14 General Principles of Management developed by Henri
Favol
Fraud - correct answer ✔✔ Any purposeful communication that deceives, manipulates, or
conceals facts in order to create a false impression
Branches of the Federal Government - correct answer ✔✔ Executive, Legislative, Judicial
Treaties - correct answer ✔✔ are compacts or agreements made between our nation and other
nations of the world
Financial Ratio Analysis: Debt Ratio - correct answer ✔✔ Debt ratio= total debt/total assests
key elements of a binding contract - correct answer ✔✔ Competent Parties (not drugged,
mentally impared, etc.)
Minors (must be 18)
Consideration(each side must contribute something of value)
Mutual Assent (each side must be clear-write it down)
Whistle-blowing - correct answer ✔✔ Exposing an employer's wrongdoing to individuals
outside the organization/company. Thee outsiders may be the media or government regulators
What did the Securities act of 1935 do? - correct answer ✔✔ -Established the SEC securities and
exchange commision with the explicit authority to establish
-The rules, standards and procedures used to account for transactions and events
-Also to establish the form and content of published financial reporting
Attribution Theory - correct answer ✔✔ Making inferences about the causes of a n individuals
behavior
Ex: Internal-failure due to self motivation
External-failure due to factors beyond control: luck, resources
,Statutes - correct answer ✔✔ Written laws enacted by the legislative branch of either the
federal or state governments
Tuckman's stages of team development (4) - correct answer ✔✔ 1. Forming-orientation break
the ice
2. Storming-marked by conflict disagreement
3. Norming- establishment of order and cohesion
4 Performing- marked by cooperation and problem solving
Federal sentencing guidelines for organizations - correct answer ✔✔ Passed by congress in 1991
focused ib guidelines for organizations, they were exempt from extreme penalties if one of
there employees acted unethically
Individualism - correct answer ✔✔ Extent that people value independence and person
uniqueness. Individualists tend to value personal freedom, self-sufficiency, control over
themselves, being appreciated for unique qualities
4 types of costs: - correct answer ✔✔ Product cost, Direct cost (allconst incutted by a compan,
and overhead
Moral Philosophy: Deontology - correct answer ✔✔ focuses on the preservation of individual
rights and on the intentions associated with a particular behavior rather than on its
consequences
Leader member exchange - correct answer ✔✔ Belief that leadership is individualized for each
subordinate. each dyad involves a unique exchange independent of other dyads. Puts
employees into either in-group or out-group categories
The US court system is developed from - correct answer ✔✔ English common law
, Statement of equity (capital) - correct answer ✔✔ Statement of Equity (capital)
bridge between the income statement and the balance sheet.
Arrangement depends on type of organization:
Proprietorship: Statement of Owners Equity
Partnership: Statement of Partners Equity
Corporation: Statement of Stockholders Equity
In addition, it contains:
Investments by Owners
Distribution to owners
Adam Smith - correct answer ✔✔ Division of Labor 1776:
Tasks are subdivided into individual jobs
Employees perform only the tasks relevant to their specialized function
Jobs tend to be small, but they can be performed efficiently
Proposes that production can be increased by dividing labor on to similar tasks
Henri Favol - correct answer ✔✔ 14 General Principles of Management developed by Henri
Favol
Fraud - correct answer ✔✔ Any purposeful communication that deceives, manipulates, or
conceals facts in order to create a false impression
