MFT Exam with Complete Solutions
A company uses labor and capital in its production of industrial grade aluminum. What is the
company's optimal decision rule for its production process? Correct Ans-Continue producing
as long as the marginal labor cost exceeds the marginal revenue product
The PRIZM and segmentation systems divide US households into segment according to common
income, education, housing, and patterns. The systems are examples of which of the following
types of segmentation approaches? Correct Ans-Usage
A financial crisis that weakens the US economy will not in the short term affect which of the
following directly? Correct Ans-Income tax rates
A company based on the US sells $500,000 of merchandise to a company in Great Britain,
purchase terms require the british company to pay 20,000 per month Correct Ans-The profit
on the sale of the merchandise will be tied to the exchange rate of dollars for British pounds
Which of the following statements about bank transactions is false? Correct Ans-When a
person deposits money at a bank, the money supply will not change
Which of the following is the most appropriate costing system for a painting contractor to use
when determining the cost of completing each painting? Correct Ans-job order costing
Assume a plot distribution of 100 measurements of some variable is symmetrical. 2
observations, which are at least 3 standard... Correct Ans-the new distribution will be
skewed to the right with the median greater than the mean
Which of the following would a company use to identify and remove defects and reduce
variability in manufacturing? Correct Ans-Just in time
,All of the following conditions are required for using the last squares technique for estimating
the regression equation except... Correct Ans-the standard deviation of the error term is
constant
According to Modigliani and Miller capital structure theory, which of the following statements
about a corporation's optimal capital structural taxes, bankruptcy costs, agency costs, and
asymmetric information? Correct Ans-The optimal capital structure for the corporation is
50% debt and 50% equity
Which of the following about striking workers in an economic strike is true? Correct Ans-
Striking workers can lose their jobs permanently
Sara Sushi's app, which is installed on mobile devices, notifies customers when they are within
half a mile of the restaurant, displays the specials offered... Correct Ans-ad serving
The business manager of a minor league baseball team in a rural area notices that Monday
games are sparsely. Offering special ticket prices... Correct Ans-lack of credibility
Which of the following is an example of upward communication in an organization? Correct
Ans-an instructional manual for assembling a product
Studies have confirmed that which of the following statements about achieving quality in goods
or services is true? Correct Ans-Achieving quality is the result of postproduction activity
Which of the following is the most common reason that an entrepreneurial start up in the US
fails? Correct Ans-undercapitalized business
the effectiveness of a strategic decision can best be measured by which of the following?
Correct Ans-the extent to which strategic objectives are achieved
, Studies have shown that which of the following best facilitates performance of a new group?
Correct Ans-focusing on the present
the existence of interlocking boards of directors violates which of the following states?
Correct Ans-The racketeer influenced and corrupt organizations act
Which of the following securities must comply with federal registration requirements?
Correct Ans-Investment contracts in orange groves
Which of the following describes how operations managers best solve job shop layout
problems? Correct Ans-the managers move material to the limited storage areas around
each work area
Which tool enables a website to send text-file information to a user's browser and have the
information to the website? Correct Ans-key logger
which of the following is a type of powerful microcomputer that is used to coordinate
telecommunications and resource sharing in small... Correct Ans-network server
Which of the following statements about an appellate court is true? Correct Ans-it hears any
new evidence
if the price elasticity of demand of a product is 0.5 when the price of the product is $10, which
of the following is true? Correct Ans-demand is relatively inelastic, and hence a price slight
higher than $10 will increase the total revenue
the weighted average cost of capital is most likely highest for which of the following? Correct
Ans-common stock in a large blue-chip company
A company uses labor and capital in its production of industrial grade aluminum. What is the
company's optimal decision rule for its production process? Correct Ans-Continue producing
as long as the marginal labor cost exceeds the marginal revenue product
The PRIZM and segmentation systems divide US households into segment according to common
income, education, housing, and patterns. The systems are examples of which of the following
types of segmentation approaches? Correct Ans-Usage
A financial crisis that weakens the US economy will not in the short term affect which of the
following directly? Correct Ans-Income tax rates
A company based on the US sells $500,000 of merchandise to a company in Great Britain,
purchase terms require the british company to pay 20,000 per month Correct Ans-The profit
on the sale of the merchandise will be tied to the exchange rate of dollars for British pounds
Which of the following statements about bank transactions is false? Correct Ans-When a
person deposits money at a bank, the money supply will not change
Which of the following is the most appropriate costing system for a painting contractor to use
when determining the cost of completing each painting? Correct Ans-job order costing
Assume a plot distribution of 100 measurements of some variable is symmetrical. 2
observations, which are at least 3 standard... Correct Ans-the new distribution will be
skewed to the right with the median greater than the mean
Which of the following would a company use to identify and remove defects and reduce
variability in manufacturing? Correct Ans-Just in time
,All of the following conditions are required for using the last squares technique for estimating
the regression equation except... Correct Ans-the standard deviation of the error term is
constant
According to Modigliani and Miller capital structure theory, which of the following statements
about a corporation's optimal capital structural taxes, bankruptcy costs, agency costs, and
asymmetric information? Correct Ans-The optimal capital structure for the corporation is
50% debt and 50% equity
Which of the following about striking workers in an economic strike is true? Correct Ans-
Striking workers can lose their jobs permanently
Sara Sushi's app, which is installed on mobile devices, notifies customers when they are within
half a mile of the restaurant, displays the specials offered... Correct Ans-ad serving
The business manager of a minor league baseball team in a rural area notices that Monday
games are sparsely. Offering special ticket prices... Correct Ans-lack of credibility
Which of the following is an example of upward communication in an organization? Correct
Ans-an instructional manual for assembling a product
Studies have confirmed that which of the following statements about achieving quality in goods
or services is true? Correct Ans-Achieving quality is the result of postproduction activity
Which of the following is the most common reason that an entrepreneurial start up in the US
fails? Correct Ans-undercapitalized business
the effectiveness of a strategic decision can best be measured by which of the following?
Correct Ans-the extent to which strategic objectives are achieved
, Studies have shown that which of the following best facilitates performance of a new group?
Correct Ans-focusing on the present
the existence of interlocking boards of directors violates which of the following states?
Correct Ans-The racketeer influenced and corrupt organizations act
Which of the following securities must comply with federal registration requirements?
Correct Ans-Investment contracts in orange groves
Which of the following describes how operations managers best solve job shop layout
problems? Correct Ans-the managers move material to the limited storage areas around
each work area
Which tool enables a website to send text-file information to a user's browser and have the
information to the website? Correct Ans-key logger
which of the following is a type of powerful microcomputer that is used to coordinate
telecommunications and resource sharing in small... Correct Ans-network server
Which of the following statements about an appellate court is true? Correct Ans-it hears any
new evidence
if the price elasticity of demand of a product is 0.5 when the price of the product is $10, which
of the following is true? Correct Ans-demand is relatively inelastic, and hence a price slight
higher than $10 will increase the total revenue
the weighted average cost of capital is most likely highest for which of the following? Correct
Ans-common stock in a large blue-chip company
