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ETS MBA Sample Questions and Answers with Solutions
UPDATED!!!
Which of the following organizations is most likely to use
project financing? - ANSWER A large public utility involved in
infrastructure development
After an extensive recruitment process to select well-qualified
individuals, a large percent ofa company's new hires resigned
within the first month of the job. Which of the following is the
most likely explanation for this situation? - ANSWER The
training process to prepare the new hires for their assigned
tasks was inadequate.
Prosco Ltd. employs a process cost system. Inspection of units
occurs at the 50 percent mark. Defective units are then
removed from the process, and their cost ($4.50) is absorbed by
the good units. Prosco has recently been approached by a firm
wishing to buy the defective units for a special use. The firm
would require Prosco to modify the defective units at a unit cost
of $2.00. If Prosco sells the defective units to the firm for $5.00
each, how would Prosco's reported income be affected? -
ANSWER It would increase by $3.00 per unit sold.
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Some companies have little, if any, net income or earnings, yet
they seem to have all the money they need for capital
expenditures. Which of the following best explains how such
companies operate? - ANSWER They have good cash flows
The Sintar Corporation has just announced that it will pay $1.10
per share in dividends to its stockholders in the current quarter.
The prior quarter's dividend was $1.00 per share. The
announcement indicates which of the following? - ANSWER
Management is sending a signal that the company has good
projected future earnings
Wave Inc. is a telecommunications company that wants to
become involved in e-commerce. It has to decide whether to
develop a business-to-business or business-to-consumer
strategy. As Wave's strategic planner, you have been asked to
develop a business plan for each opportunity and present these
to senior management. The answer to which of the following
questions is most important to know before starting your plan?
- ANSWER What are the company's core competencies?
ETS MBA Sample Questions and Answers with Solutions
UPDATED!!!
Which of the following organizations is most likely to use
project financing? - ANSWER A large public utility involved in
infrastructure development
After an extensive recruitment process to select well-qualified
individuals, a large percent ofa company's new hires resigned
within the first month of the job. Which of the following is the
most likely explanation for this situation? - ANSWER The
training process to prepare the new hires for their assigned
tasks was inadequate.
Prosco Ltd. employs a process cost system. Inspection of units
occurs at the 50 percent mark. Defective units are then
removed from the process, and their cost ($4.50) is absorbed by
the good units. Prosco has recently been approached by a firm
wishing to buy the defective units for a special use. The firm
would require Prosco to modify the defective units at a unit cost
of $2.00. If Prosco sells the defective units to the firm for $5.00
each, how would Prosco's reported income be affected? -
ANSWER It would increase by $3.00 per unit sold.
, Page |2
Some companies have little, if any, net income or earnings, yet
they seem to have all the money they need for capital
expenditures. Which of the following best explains how such
companies operate? - ANSWER They have good cash flows
The Sintar Corporation has just announced that it will pay $1.10
per share in dividends to its stockholders in the current quarter.
The prior quarter's dividend was $1.00 per share. The
announcement indicates which of the following? - ANSWER
Management is sending a signal that the company has good
projected future earnings
Wave Inc. is a telecommunications company that wants to
become involved in e-commerce. It has to decide whether to
develop a business-to-business or business-to-consumer
strategy. As Wave's strategic planner, you have been asked to
develop a business plan for each opportunity and present these
to senior management. The answer to which of the following
questions is most important to know before starting your plan?
- ANSWER What are the company's core competencies?
