1|Page
ETS MFT Business Exam Version 1 Study Guide 2025 | Major Field
Test in Business Practice Questions, Answers
Get ready for the ETS MFT Business Exam Version 1 (2025) with this complete study guide.
Covers accounting, economics, finance, management, marketing, quantitative analysis, and
international business. Includes MFT-style practice questions, detailed answer explanations, and
test-taking strategies to help you achieve a top percentile score.
• ETS MFT Business Exam 2025
• ETS MFT Business Exam Version 1
• Major Field Test in Business practice test
•
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
,2|Page
In ___________, provincial governments play a substantial role in trade and investment regulation
a) China
b) Norway
c) Indonesia
d) Canada - ANSWER-D
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
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
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b) 1/4, or 0.25
c) 1/120, or about 0.0083
d) 1/15, or about 0.07 - ANSWER-D
What is the measure that indicates how precise a prediction of Y is based on X or, conversely, how
inaccurate the prediction might be?
a) Regression equation
b) Slope of the line
c) Standard error of estimate
d) Least squares principle - ANSWER-C
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
The channels of distribution create all of the following utilities EXCEPT
, 4|Page
a) time
b) place
c) form
d) possession - ANSWER-C
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
The process of collecting information about the external marketing environment is called:
a) environmental management
b) marketing research
ETS MFT Business Exam Version 1 Study Guide 2025 | Major Field
Test in Business Practice Questions, Answers
Get ready for the ETS MFT Business Exam Version 1 (2025) with this complete study guide.
Covers accounting, economics, finance, management, marketing, quantitative analysis, and
international business. Includes MFT-style practice questions, detailed answer explanations, and
test-taking strategies to help you achieve a top percentile score.
• ETS MFT Business Exam 2025
• ETS MFT Business Exam Version 1
• Major Field Test in Business practice test
•
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
,2|Page
In ___________, provincial governments play a substantial role in trade and investment regulation
a) China
b) Norway
c) Indonesia
d) Canada - ANSWER-D
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
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
,3|Page
b) 1/4, or 0.25
c) 1/120, or about 0.0083
d) 1/15, or about 0.07 - ANSWER-D
What is the measure that indicates how precise a prediction of Y is based on X or, conversely, how
inaccurate the prediction might be?
a) Regression equation
b) Slope of the line
c) Standard error of estimate
d) Least squares principle - ANSWER-C
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
The channels of distribution create all of the following utilities EXCEPT
, 4|Page
a) time
b) place
c) form
d) possession - ANSWER-C
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
The process of collecting information about the external marketing environment is called:
a) environmental management
b) marketing research
