ETS Exam Multiple Choice Correct
Questions And Answers
In marketing research, a firm might consider using
secondary data over primary data because
(A) secondary data usually cost less
(B) secondary data are usually more accurate
(C) primary data are usually non specific
(D) primary data are likely to be outdated Correct Answers (A) secondary data usually
cost less
In organizational decision making, managers are
able to exercise the greatest degree of discretion in
the
(A) enforcement of internal policies
(B) settlement of legal disputes
(C) restructuring of outstanding loans
(D) compliance with federal regulations Correct Answers (A) enforcement of internal
policies
The term "net working capital" refers to
(A) inventories, receivables, and current notes and
investments
(B) assets divided by liabilities
(C) current assets less short-term liabilities
(D) net assets left over after subtracting cost of
goods sold Correct Answers (C) current assets less short-term liabilities
Dreamland Pillow Company sells the "Old Softy"
model for $20 each. One pillow requires two pounds of
raw material and one hour of direct labor to
manufacture. Raw material costs $3 per pound and direct production labor is paid $4
per hour. Fixed
supervisory costs are $2,000 per month and Dreamland
rents its factory on a five-year lease for $4,000 per
month. All costs are considered costs of production. Correct Answers Information for
following questions
How many pillows must Dreamland produce and
,sell each month to earn a monthly gross profit of
$1,000?
(A) 300
(B) 350
(C) 600
(D) 700 Correct Answers (D) 700
Another firm has offered to produce "Old Softy"
pillows and sell them to Dreamland for $12 each.
Dreamland cannot avoid the factory lease
payments, but can avoid all labor costs if it does
not produce these pillows. Under these conditions,
how many "Old Softy" pillows must Dreamland
sell to earn monthly gross profits of $1,000?
(A) 417
(B) 500
(C) 625
(D) 875 Correct Answers (C) 625
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. Correct Answers (D) It requires proof of breach of a statutory or
common-law duty.
Which of the following statements about a systems
flowchart is true?
(A) It is used in systems design to define and
describe each piece of data.
(B) It is a method of writing programs using
only three basic constructs: sequence,
selection, and repetition.
(C) It documents the sequence of processing
steps that take place in an information
system.
(D) It documents the logical design of an
information system. Correct Answers (C) It documents the sequence of processing
steps that take place in an information
, system.
On May 31, Company O's general ledger shows a
cash balance of $5,123. The May 31 bank
statement shows a balance of $4,905. Other
information is available as follows:
1. A May 31 deposit of $300 does not
appear on the bank statement; but a
$3 service charge does.
2. A customer's $40 insufficient funds
check has been returned with the
bank statement.
3. Outstanding checks of $10, $15, and
$100 are identified on May 31
What is the correct cash balance on May 31?
(A) $4,905
(B) $5,080
(C) $5,166
(D) $5,204 Correct Answers (B) $5,080
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 Answers (B) return on the market
portfolio
A project consists of 150 jobs. The expected
completion time for each job is given in days. The
project has three critical paths with two jobs in
common, J and K. In order to finish the project
one day early, the completion time should be
reduced one day for
(A) each of the 150 jobs
(B) each of the jobs on the three critical paths
(C) either Job J or Job K
(D) both Job J and Job K Correct Answers (C) either Job J or Job K
The Organization of the Petroleum Exporting
Countries (OPEC) reduces production by
Questions And Answers
In marketing research, a firm might consider using
secondary data over primary data because
(A) secondary data usually cost less
(B) secondary data are usually more accurate
(C) primary data are usually non specific
(D) primary data are likely to be outdated Correct Answers (A) secondary data usually
cost less
In organizational decision making, managers are
able to exercise the greatest degree of discretion in
the
(A) enforcement of internal policies
(B) settlement of legal disputes
(C) restructuring of outstanding loans
(D) compliance with federal regulations Correct Answers (A) enforcement of internal
policies
The term "net working capital" refers to
(A) inventories, receivables, and current notes and
investments
(B) assets divided by liabilities
(C) current assets less short-term liabilities
(D) net assets left over after subtracting cost of
goods sold Correct Answers (C) current assets less short-term liabilities
Dreamland Pillow Company sells the "Old Softy"
model for $20 each. One pillow requires two pounds of
raw material and one hour of direct labor to
manufacture. Raw material costs $3 per pound and direct production labor is paid $4
per hour. Fixed
supervisory costs are $2,000 per month and Dreamland
rents its factory on a five-year lease for $4,000 per
month. All costs are considered costs of production. Correct Answers Information for
following questions
How many pillows must Dreamland produce and
,sell each month to earn a monthly gross profit of
$1,000?
(A) 300
(B) 350
(C) 600
(D) 700 Correct Answers (D) 700
Another firm has offered to produce "Old Softy"
pillows and sell them to Dreamland for $12 each.
Dreamland cannot avoid the factory lease
payments, but can avoid all labor costs if it does
not produce these pillows. Under these conditions,
how many "Old Softy" pillows must Dreamland
sell to earn monthly gross profits of $1,000?
(A) 417
(B) 500
(C) 625
(D) 875 Correct Answers (C) 625
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. Correct Answers (D) It requires proof of breach of a statutory or
common-law duty.
Which of the following statements about a systems
flowchart is true?
(A) It is used in systems design to define and
describe each piece of data.
(B) It is a method of writing programs using
only three basic constructs: sequence,
selection, and repetition.
(C) It documents the sequence of processing
steps that take place in an information
system.
(D) It documents the logical design of an
information system. Correct Answers (C) It documents the sequence of processing
steps that take place in an information
, system.
On May 31, Company O's general ledger shows a
cash balance of $5,123. The May 31 bank
statement shows a balance of $4,905. Other
information is available as follows:
1. A May 31 deposit of $300 does not
appear on the bank statement; but a
$3 service charge does.
2. A customer's $40 insufficient funds
check has been returned with the
bank statement.
3. Outstanding checks of $10, $15, and
$100 are identified on May 31
What is the correct cash balance on May 31?
(A) $4,905
(B) $5,080
(C) $5,166
(D) $5,204 Correct Answers (B) $5,080
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 Answers (B) return on the market
portfolio
A project consists of 150 jobs. The expected
completion time for each job is given in days. The
project has three critical paths with two jobs in
common, J and K. In order to finish the project
one day early, the completion time should be
reduced one day for
(A) each of the 150 jobs
(B) each of the jobs on the three critical paths
(C) either Job J or Job K
(D) both Job J and Job K Correct Answers (C) either Job J or Job K
The Organization of the Petroleum Exporting
Countries (OPEC) reduces production by
