ETS MAJOR FIELD TEST (PRACTICE TEST):
BACHELOR'S DEGREE IN BUSINESS QUESTIONS &
ANSWERS LATEST UPDATE
The common characteristic possessed by all assets is
a) Long life
b) Great monetary value
c) Tangible nature
d) Future economic benefit - correct answer-d) Future economic benefit
Which Foreign Direct Investment (FDI) attempts to acquire particular resources at a lower real cost tha
n could be obtained in the home country?
a) Market-seeking FDI
b) Efficiency-seeking FDI
c) Resource-seeking FDI
d) Strategic asset-seeking FDI - correct answer-c) Resource-seeking FDI
Under the Uniform Commercial Code (UCC) statute of frauds, which of the following terms must be i
ncluded in writing in order to satisfy the writing requirement?
a) The price of the goods.
b) The quantity of the goods.
c) The signatures and names of the buyer and the seller
d) The time and place for delivery - correct answer-b) The quantity of the goods
Which of the following is an appropriate Federal Reserve action to stimulate the United States econom
y?
a) Selling government bonds on the open market
b) Increasing the discount rate
,c) Reducing the reserve requirement
d) Cutting taxes - correct answer-c) Reducing the reserve requirement
Which of the following is true with regard to an exculpatory clause?
a) An exculpatory clause excuses one party from liability for his/her own tortious conduct.
b) Where one party has a superior bargaining position that has enabled him/her to impose an exculpato
ry clause upon the other, the courts are inclined to nullify the provision.
c) An exculpatory clause may be unenforceable for unconscionability.
d) All of the above are true - correct answer-d) All of the above are true
Managers at ABC, Inc. analyze the current situation of their organization and then develop plans to hel
p their organization to accomplish its mission and achieve its goals. This is known as:
a) Synergy planning
b) Strategy formulation
c) Functional planning
d) SWOT analysis - correct answer-b) Strategy formulation
A group that develops naturally as a result of employees' interaction within an organization is referred
to as
a) an informal group
b) a formal group
c) a work-team group
d) a formation group - correct answer-a) an informal group
When employees use email, word processors, electronic scheduling / calendars, they are using which o
f the following?
,a) Transaction processing systems
b) Process control systems
c) Office automation systems
d) Decision support systems - correct answer-c) Office automation systems
A standard procedure for numerically measuring a project's progress, forecasting its completion date an
d cost and providing measures of schedule and budget variation as activities are completed is referred t
o as
a) program evaluation and review technique (PERT)
b) the critical path method (CPM)
c) a Gantt chart
d) earned value analysis (EVA) - correct answer-d) earned value analysis (EVA)
High product differentiation is generally accompanied by
a) higher market share
b) decreased emphasis on competition based on price
c) higher profit margins and lower costs
d) significant economies of scale - correct answer-
b) decreased emphasis on competition based on price
The essence of common law is:
a) its prospective nature.
b) the concept of stare decisis
c) its flexibility
d) the plain meaning doctrine - correct answer-b) the concept of stare decisis
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?
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
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
If the spread between the spot and forward exchange rates of two currencies equals the interest rate dif
ference between the two countries, this phenomenon is referred to as
a) purchasing-power equality
b) commodity arbitrage
c) currency hedging
d) interest-rate parity - correct answer-d) interest-rate parity
Douglass Interiors is considering two mutually exclusive projects and have determined that the crossov
er rate forQthese projects is 11.7 percent. Project A has an internal rate of return (IRR) of 15.3 percent
and Project B has an IRRQof 16.5 percent. Given this information, which one of the following statemen
ts is correct?
a) Project A should be accepted as its IRR is closer to the crossover point than is Project B's IRR.
BACHELOR'S DEGREE IN BUSINESS QUESTIONS &
ANSWERS LATEST UPDATE
The common characteristic possessed by all assets is
a) Long life
b) Great monetary value
c) Tangible nature
d) Future economic benefit - correct answer-d) Future economic benefit
Which Foreign Direct Investment (FDI) attempts to acquire particular resources at a lower real cost tha
n could be obtained in the home country?
a) Market-seeking FDI
b) Efficiency-seeking FDI
c) Resource-seeking FDI
d) Strategic asset-seeking FDI - correct answer-c) Resource-seeking FDI
Under the Uniform Commercial Code (UCC) statute of frauds, which of the following terms must be i
ncluded in writing in order to satisfy the writing requirement?
a) The price of the goods.
b) The quantity of the goods.
c) The signatures and names of the buyer and the seller
d) The time and place for delivery - correct answer-b) The quantity of the goods
Which of the following is an appropriate Federal Reserve action to stimulate the United States econom
y?
a) Selling government bonds on the open market
b) Increasing the discount rate
,c) Reducing the reserve requirement
d) Cutting taxes - correct answer-c) Reducing the reserve requirement
Which of the following is true with regard to an exculpatory clause?
a) An exculpatory clause excuses one party from liability for his/her own tortious conduct.
b) Where one party has a superior bargaining position that has enabled him/her to impose an exculpato
ry clause upon the other, the courts are inclined to nullify the provision.
c) An exculpatory clause may be unenforceable for unconscionability.
d) All of the above are true - correct answer-d) All of the above are true
Managers at ABC, Inc. analyze the current situation of their organization and then develop plans to hel
p their organization to accomplish its mission and achieve its goals. This is known as:
a) Synergy planning
b) Strategy formulation
c) Functional planning
d) SWOT analysis - correct answer-b) Strategy formulation
A group that develops naturally as a result of employees' interaction within an organization is referred
to as
a) an informal group
b) a formal group
c) a work-team group
d) a formation group - correct answer-a) an informal group
When employees use email, word processors, electronic scheduling / calendars, they are using which o
f the following?
,a) Transaction processing systems
b) Process control systems
c) Office automation systems
d) Decision support systems - correct answer-c) Office automation systems
A standard procedure for numerically measuring a project's progress, forecasting its completion date an
d cost and providing measures of schedule and budget variation as activities are completed is referred t
o as
a) program evaluation and review technique (PERT)
b) the critical path method (CPM)
c) a Gantt chart
d) earned value analysis (EVA) - correct answer-d) earned value analysis (EVA)
High product differentiation is generally accompanied by
a) higher market share
b) decreased emphasis on competition based on price
c) higher profit margins and lower costs
d) significant economies of scale - correct answer-
b) decreased emphasis on competition based on price
The essence of common law is:
a) its prospective nature.
b) the concept of stare decisis
c) its flexibility
d) the plain meaning doctrine - correct answer-b) the concept of stare decisis
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?
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
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
If the spread between the spot and forward exchange rates of two currencies equals the interest rate dif
ference between the two countries, this phenomenon is referred to as
a) purchasing-power equality
b) commodity arbitrage
c) currency hedging
d) interest-rate parity - correct answer-d) interest-rate parity
Douglass Interiors is considering two mutually exclusive projects and have determined that the crossov
er rate forQthese projects is 11.7 percent. Project A has an internal rate of return (IRR) of 15.3 percent
and Project B has an IRRQof 16.5 percent. Given this information, which one of the following statemen
ts is correct?
a) Project A should be accepted as its IRR is closer to the crossover point than is Project B's IRR.
