ETS MFT BUSINESS EXAM VERSION 1
COMPLETE QUESTIONS AND DETAILED SOLUTIONS
LATEST UPDATE THIS YEAR JUST RELEASED
Question 1: An example of an unfair trade practice is:
A. EU Government policy prohibiting imports of U.S. Beef
B. EU prohibitions of Latin American bananas
C. US tariffs on European steel
D. All of the above
Answer:
D
Question 2: The channels of distribution create all of the following
utilities EXCEPT
A. time
B. place
C. form
D. possession
Answer:
C
Question 3: Routine physical examinations are conducted annually
as part of a health service program for the employees. It was
discovered that 8% of the employees needed corrective shoes, 15%
needed major dental work and 3% needed both corrective shoes
and major dental work. What is the probability that an employee
selected at random will need either corrective shoes or major
dental work?
, A. 0.20
B. 0.25
C. 0.50
D. 1.00
E. None of the above
Answer:
A
Question 4: Sessler Manufacturers made two announcements
concerning its common stock today. First, the company announced
that the next annual dividend will be $1.75 a share. Secondly, all
dividends after that will decrease by 1.5 percent annually. What is
the maximum amount you should pay to purchase a share of this
stock today if you require a 14 percent rate of return?
A. $11.29
B. $12.64
C. $13.27
D. $14.00
E. $14.21
Answer:
A
Question 5: In ___________, provincial governments play a
substantial role in trade and investment regulation
A. China
B. Norway
C. Indonesia
D. Canada
Answer:
, D
Question 6: Douglass Interiors is considering two mutually
exclusive projects and have determined that the crossover rate for
these projects is 11.7 percent. Project A has an internal rate of
return (IRR) of 15.3 percent and Project B has an IRR of 16.5
percent. Given this information, which one of the following
statements is correct?
A. Project A should be accepted as its IRR is closer to the crossover
point than is Project B's IRR.
B. Project B should be accepted as it has the higher IRR.
C. Both projects should be accepted as both of the project's IRRs
exceed the crossover rate.
D. Neither project should be accepted since both of the project's IRRs
exceed the crossover rate.
E. You cannot determine which project should be accepted given the
information provided.
Answer:
E
Question 7: There are 10 rolls of film in a box and 3 are defective.
Two rolls are to be selected without replacement. What is the
probability of selecting a defective roll followed by another
defective roll?
A. 1/2, or 0.50
B. 1/4, or 0.25
C. 1/120, or about 0.0083
D. 1/15, or about 0.07
Answer:
, D
Question 8: The process of collecting information about the
external marketing environment is called:
A. environmental management
B. marketing research
C. marketing management
D. environmental scanning
Answer:
D
Question 9: Which Foreign Direct Investment (FDI) attempts to
acquire particular resources at a lower real cost than could be
obtained in the home country?
A. Market-seeking FDI
B. Efficiency-seeking FDI
C. Resource-seeking FDI
D. Strategic asset-seeking FDI
Answer:
C
Question 10: ____ planning normally is performed by middle
managers and typically has a one-year time frame
A. Strategic planning
B. Tactical planning
C. Operational planning
D. Contingency planning
Answer:
COMPLETE QUESTIONS AND DETAILED SOLUTIONS
LATEST UPDATE THIS YEAR JUST RELEASED
Question 1: An example of an unfair trade practice is:
A. EU Government policy prohibiting imports of U.S. Beef
B. EU prohibitions of Latin American bananas
C. US tariffs on European steel
D. All of the above
Answer:
D
Question 2: The channels of distribution create all of the following
utilities EXCEPT
A. time
B. place
C. form
D. possession
Answer:
C
Question 3: Routine physical examinations are conducted annually
as part of a health service program for the employees. It was
discovered that 8% of the employees needed corrective shoes, 15%
needed major dental work and 3% needed both corrective shoes
and major dental work. What is the probability that an employee
selected at random will need either corrective shoes or major
dental work?
, A. 0.20
B. 0.25
C. 0.50
D. 1.00
E. None of the above
Answer:
A
Question 4: Sessler Manufacturers made two announcements
concerning its common stock today. First, the company announced
that the next annual dividend will be $1.75 a share. Secondly, all
dividends after that will decrease by 1.5 percent annually. What is
the maximum amount you should pay to purchase a share of this
stock today if you require a 14 percent rate of return?
A. $11.29
B. $12.64
C. $13.27
D. $14.00
E. $14.21
Answer:
A
Question 5: In ___________, provincial governments play a
substantial role in trade and investment regulation
A. China
B. Norway
C. Indonesia
D. Canada
Answer:
, D
Question 6: Douglass Interiors is considering two mutually
exclusive projects and have determined that the crossover rate for
these projects is 11.7 percent. Project A has an internal rate of
return (IRR) of 15.3 percent and Project B has an IRR of 16.5
percent. Given this information, which one of the following
statements is correct?
A. Project A should be accepted as its IRR is closer to the crossover
point than is Project B's IRR.
B. Project B should be accepted as it has the higher IRR.
C. Both projects should be accepted as both of the project's IRRs
exceed the crossover rate.
D. Neither project should be accepted since both of the project's IRRs
exceed the crossover rate.
E. You cannot determine which project should be accepted given the
information provided.
Answer:
E
Question 7: There are 10 rolls of film in a box and 3 are defective.
Two rolls are to be selected without replacement. What is the
probability of selecting a defective roll followed by another
defective roll?
A. 1/2, or 0.50
B. 1/4, or 0.25
C. 1/120, or about 0.0083
D. 1/15, or about 0.07
Answer:
, D
Question 8: The process of collecting information about the
external marketing environment is called:
A. environmental management
B. marketing research
C. marketing management
D. environmental scanning
Answer:
D
Question 9: Which Foreign Direct Investment (FDI) attempts to
acquire particular resources at a lower real cost than could be
obtained in the home country?
A. Market-seeking FDI
B. Efficiency-seeking FDI
C. Resource-seeking FDI
D. Strategic asset-seeking FDI
Answer:
C
Question 10: ____ planning normally is performed by middle
managers and typically has a one-year time frame
A. Strategic planning
B. Tactical planning
C. Operational planning
D. Contingency planning
Answer:
