ETS EXAM MULTIPLE CHOICE QUESTIONS
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(D) primary data are likely to be outdated - Answer -(A) secondary data usually cost
less
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. - Answer -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 - Answer -(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 - Answer -(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. - Answer -(D) It requires proof of breach of a statutory or
common-law duty.
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 - Answer -(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 - Answer -(C) current assets less short-term liabilities
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. - Answer -(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
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 - Answer -(A) secondary data usually cost
less
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. - Answer -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 - Answer -(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 - Answer -(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. - Answer -(D) It requires proof of breach of a statutory or
common-law duty.
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 - Answer -(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 - Answer -(C) current assets less short-term liabilities
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. - Answer -(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
