2024 ETS MAJOR FIELD TEST (PRACTICE TEST): BACHELOR'S DEGREE IN BUSINESS ACTUAL QUESTIONS AND ANSWERS -PERFECT WILL PASS!!!!

2024 ETS MAJOR FIELD TEST (PRACTICE TEST): BACHELOR'S DEGREE IN BUSINESS ACTUAL QUESTIONS AND ANSWERS -PERFECT WILL PASS!!!! The common characteristic possessed by all assets is a) Long life b) Great monetary value c) Tangible nature d) Future economic benefit Ans- d) Future economic benefit 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 Ans- c) Resource-seeking FDI Under the Uniform Commercial Code (UCC) statute of frauds, which of the following terms must be included 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 Ans- b) The quantity of the goods Which of the following is an appropriate Federal Reserve action to stimulate the United States economy? a) Selling government bonds on the open market b) Increasing the discount rate c) Reducing the reserve requirement d) Cutting taxes Ans- 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 exculpatory 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 Ans- d) All of the above are true Managers at ABC, Inc. analyze the current situation of their organization and then develop plans to help 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 Ans- 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 Ans- a) an informal group When employees use email, word processors, electronic scheduling / calendars, they are using which of the following? a) Transaction processing systems b) Process control systems c) Office automation systems d) Decision support systems Ans- c) Office automation systems A standard procedure for numerically measuring a project's progress, forecasting its completion date and cost and providing measures of schedule and budget variation as activities are completed is referred to as a) program evaluation and review technique (PERT) b) the critical path method (CPM) c) a Gantt chart d) earned value analysis (EVA) Ans- 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 Ans- 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 Ans- 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 Ans- 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 Ans- b) return on the market portfolio If the spread between the spot and forward exchange rates of two currencies equals the interest rate difference between the two countries, this phenomenon is referred to as a) purchasing-power equality b) commodity arbitrage c) currency hedging d) interest-rate parity Ans- d) interest-rate parity 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. Ans- e) You cannot determine which project should be accepted given the information provided. A small number of people with complementary skills who are committed to a common purpose, a set of performance goals, and an approach for which they hold themselves mutually accountable is referred to as a a) committee b) task force c) group d) team Ans- d) team Manufacturing overhead includes: a) all direct material, direct labor and administrative costs b) all manufacturing costs except direct labor c) all manufacturing costs except direct labor and direct materials d) all selling and administrative costs Ans- c) all manufacturing costs except direct labor and direct materials Sue and Neal are twins. Sue invests $5,000 at 7 percent when she is 25 years old. Neal invests $5,000 at 7 percent when he is 30 years old. Both investments compound interest annually. Both Sue and Neal retire at age 60. Which one of the following statements is correct assuming that neither Sue nor Neal has withdrawn any money from their accounts? a) Sue will have less money when she retires than Neal. b) Neal will earn more interest on interest than Sue. c) Neal will earn more compound interest than Sue. d) If both Sue and Neal wait to age 70 to retire, then they will have equal amounts of savings. e) Sue will have more money than Neal as long as they retire at the same time Ans- e) Sue will have more money than Neal as long as they retire at the same time A sample of assistant professors on the business faculty at state supported institutions in Ohio revealed the mean income to be $32,000 for 9 months with a standard deviation of $3,000. Using Chebyshev's Theorem, what proportion of the faculty earns more than $26,000 but less than $38,000? a) At least 50% b) At least 25% c) At least 75% d) At least 100% Ans- c) At least 75% When a domestic firm permits a foreign company to manufacture and sell its product in exchange for a fee or royalty, the process is termed a) importing b) exporting c) licensing d) countertrading Ans- c) licensing In project management the term slack refers to the: a) amount of time to complete an activity without delaying the project b) amount of time an activity can be delayed without delaying the project c) amount of time needed to complete the entire project d) amount of time required to complete the project's critical activities Ans- b) amount of time an activity can be delayed without delaying the project In the calculation of the arithmetic mean for grouped data, which value is used to represent all the values in a particular class? a) The upper limit of the class b) The lower limit of the class c) The frequency of the class d) The cumulative frequency preceding the class e) The class midpoint Ans- e) The class midpoint Which of the following statements about the tort of negligence is true? a) It cannot be used as a basis for liability for defective products. b) It is a strict liability tort with no defenses. c) It requires proof of some intentional conduct. d) It requires proof of breach of a statutory or common-law duty. Ans- d) It requires proof of breach of a statutory or common-law duty. Long-term plans focusing on those organizational objectives that will significantly affect the firm for five or more years are usually referred to as _____ plans. a) strategic b) marketing c) economic d) Tactical Ans- a) strategic The CEO reviews the performance of her company in the past month's Profit & Loss Statement to determine if the company is "on track" in terms of its sales and profitability goals. This CEO is engaged in which function? a) Planning b) Organizing c) Demonstrating d) Controlling e) Leading Ans- d) Controlling The longest path through the network, in terms of time, is referred to as the a) activity-on-node path b) path of greatest slack c) critical path d) scheduling path Ans- c) critical path In an economy the unemployment rate is 10 percent and the inflation rate is 1 percent. An appropriate fiscal policy in this phase of the business cycle would be to a) increase government spending b) increase income taxes c) decrease transfer payments d) decrease the money supply Ans- a) increase government spending In ___________, provincial governments play a substantial role in trade and investment regulation a) China b) Norway c) Indonesia d) Canada Ans- d) Canada Web 2.0 is best represented by which of the following phenomena? a) Social networking sites b) Word processing c) Internet browsers d) Text messaging Ans- a) Social networking sites Business torts consist of: a) interference with contractual relations. b) disparagement. c) fraudulent misrepresentation d) All of the above Ans- d) All of the above Officers and directors of a corporation owe to the corporation the subordination of their self-interest to the interest of the corporation and owe constant loyalty to the corporation. This duty is the: a) fiduciary duty b) business judgment duty c) duty of indemnification d) duty of diligence Ans- a) fiduciary duty Which of the following is not part of the accounting process? a) Recording b) Identifying c) Financial decision making d) Communicating Ans- c) Financial decision making In organizational decision making, managers are able to exercise the greatest degree of discretion in the a) enforcement of internal policies .................................................................................................................................