MBA MAJOR FIELD TEST (MFT) STUDY CARDS – MBA PROGRAM –
COMPREHENSIVE REVIEW NOTES AND EXAM PREPARATION GUIDE A+ VERIFIED
LATEST VERSION
1. Which of the following organizations is most likely
to use project financing?
(A) A small start-up
(B) A financial services firm with an extensive
client list
(C) A large consumer goods company
(D) A large public utility involved in
infrastructure development: (D) A large public utility involved in
infrastructure development
2. After an extensive recruitment process to select
well-qualified individuals, a large percent of
a company's new hires resigned within the first
month of the job. Which of the following is the
most likely explanation for this situation?
(A) The training process to prepare the new hires
for their assigned tasks was inadequate.
(B) The health benefits provided by the company
were not competitive with those of the rest
of the industry.
(C) The starting salary for the new hires was not
competitive with that of the rest of the
industry.
(D) The new hires lacked the basic skills required
to learn the job.: (A) The training process to prepare the new hires
for their assigned tasks was inadequate.
3. 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
, MBA MAJOR FIELD TEST (MFT) STUDY CARDS – MBA PROGRAM –
COMPREHENSIVE REVIEW NOTES AND EXAM PREPARATION GUIDE A+ VERIFIED
LATEST VERSION
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?
(A) It would decrease by $4.50 per unit sold.
(B) It would decrease by $1.50 per unit sold.
(C) It would increase by $3.00 per unit sold.
(D) It would increase by $5.00 per unit sold.: (C) It would increase by $3.00 per unit sold.
4. 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?
(A) They have good cash flows.
(B) They lease capital equipment that does not
show up on balance sheets.
(C) They have accounts with many different
banks.
(D) They issue warrants to their officers.: (A) They have good cash flows.
5. 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?
(A) Management is sending a signal that it
expects the economy to expand.
(B) Management is sending a signal that the
company has good projected future earnings.
(C) While the company was able to pay a higher
dividend, management preferred a more
conservative figure.
(D) The company has overextended its cash
, MBA MAJOR FIELD TEST (MFT) STUDY CARDS – MBA PROGRAM –
COMPREHENSIVE REVIEW NOTES AND EXAM PREPARATION GUIDE A+ VERIFIED
LATEST VERSION
position and may: (B) Management is sending a signal that the
company has good projected future earnings.
6. . 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?
(A) What are the company's core competencies?
(B) What is the potential market size?
(C) What is the impact on the estimated revenue?
(D) Does the company have e-commerce
capabilities?: (A) What are the company's core competencies?
7. If you were the holder of a call option (having cost
you $2) on some stock with an exercise price of
$20, it would be best for you to exercise your option
when the market price is at
(A) $18
(B) $20
(C) $22
(D) $24: (D) $24
8. . Increased globalization and technological change,
particularly in telecommunications, enable more
organizations to adopt which of the following
organizational structures?
(A) Functional
(B) Matrix
(C) Network
(D) Mechanistic: (C) Network
COMPREHENSIVE REVIEW NOTES AND EXAM PREPARATION GUIDE A+ VERIFIED
LATEST VERSION
1. Which of the following organizations is most likely
to use project financing?
(A) A small start-up
(B) A financial services firm with an extensive
client list
(C) A large consumer goods company
(D) A large public utility involved in
infrastructure development: (D) A large public utility involved in
infrastructure development
2. After an extensive recruitment process to select
well-qualified individuals, a large percent of
a company's new hires resigned within the first
month of the job. Which of the following is the
most likely explanation for this situation?
(A) The training process to prepare the new hires
for their assigned tasks was inadequate.
(B) The health benefits provided by the company
were not competitive with those of the rest
of the industry.
(C) The starting salary for the new hires was not
competitive with that of the rest of the
industry.
(D) The new hires lacked the basic skills required
to learn the job.: (A) The training process to prepare the new hires
for their assigned tasks was inadequate.
3. 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
, MBA MAJOR FIELD TEST (MFT) STUDY CARDS – MBA PROGRAM –
COMPREHENSIVE REVIEW NOTES AND EXAM PREPARATION GUIDE A+ VERIFIED
LATEST VERSION
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?
(A) It would decrease by $4.50 per unit sold.
(B) It would decrease by $1.50 per unit sold.
(C) It would increase by $3.00 per unit sold.
(D) It would increase by $5.00 per unit sold.: (C) It would increase by $3.00 per unit sold.
4. 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?
(A) They have good cash flows.
(B) They lease capital equipment that does not
show up on balance sheets.
(C) They have accounts with many different
banks.
(D) They issue warrants to their officers.: (A) They have good cash flows.
5. 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?
(A) Management is sending a signal that it
expects the economy to expand.
(B) Management is sending a signal that the
company has good projected future earnings.
(C) While the company was able to pay a higher
dividend, management preferred a more
conservative figure.
(D) The company has overextended its cash
, MBA MAJOR FIELD TEST (MFT) STUDY CARDS – MBA PROGRAM –
COMPREHENSIVE REVIEW NOTES AND EXAM PREPARATION GUIDE A+ VERIFIED
LATEST VERSION
position and may: (B) Management is sending a signal that the
company has good projected future earnings.
6. . 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?
(A) What are the company's core competencies?
(B) What is the potential market size?
(C) What is the impact on the estimated revenue?
(D) Does the company have e-commerce
capabilities?: (A) What are the company's core competencies?
7. If you were the holder of a call option (having cost
you $2) on some stock with an exercise price of
$20, it would be best for you to exercise your option
when the market price is at
(A) $18
(B) $20
(C) $22
(D) $24: (D) $24
8. . Increased globalization and technological change,
particularly in telecommunications, enable more
organizations to adopt which of the following
organizational structures?
(A) Functional
(B) Matrix
(C) Network
(D) Mechanistic: (C) Network
