ETS MAJOR FIELD TEST PRACTICE TEST
BACHELOR'S DEGREE IN BUSINESS
COMPLETE STUDY GUIDE AND REVIEW
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales Included
,Which of the following is an appropriate Federal Reserve c) Reducing the reserve requirement
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
Which of the following is true with regard to an d) All of the above are true
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
Managers at ABC, Inc. analyze the current situation of b) Strategy formulation
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
A group that develops naturally as a result of employees' a) an informal group
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
,When employees use email, word processors, electronic c) Office automation systems
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
A standard procedure for numerically measuring a d) earned value analysis (EVA)
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)
High product differentiation is generally accompanied by b) decreased emphasis on competition based on price
a) higher market share
b) decreased emphasis on competition based on price
c) higher profit margins and lower costs
d) significant economies of scale
The essence of common law is: b) the concept of stare decisis
a) its prospective nature.
b) the concept of stare decisis
c) its flexibility
d) the plain meaning doctrine
The Organization of the Petroleum Exporting Countries b) Price will increase, but quantity is indeterminate
(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
, Within the context of the capital asset pricing model b) return on the market portfolio
(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
If the spread between the spot and forward exchange d) interest-rate parity
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
Douglass Interiors is considering two mutually exclusive e) You cannot determine which project should be accepted given the information
projects and have determined that the crossover rate for provided.
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.
A small number of people with complementary skills who d) team
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
BACHELOR'S DEGREE IN BUSINESS
COMPLETE STUDY GUIDE AND REVIEW
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales Included
,Which of the following is an appropriate Federal Reserve c) Reducing the reserve requirement
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
Which of the following is true with regard to an d) All of the above are true
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
Managers at ABC, Inc. analyze the current situation of b) Strategy formulation
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
A group that develops naturally as a result of employees' a) an informal group
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
,When employees use email, word processors, electronic c) Office automation systems
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
A standard procedure for numerically measuring a d) earned value analysis (EVA)
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)
High product differentiation is generally accompanied by b) decreased emphasis on competition based on price
a) higher market share
b) decreased emphasis on competition based on price
c) higher profit margins and lower costs
d) significant economies of scale
The essence of common law is: b) the concept of stare decisis
a) its prospective nature.
b) the concept of stare decisis
c) its flexibility
d) the plain meaning doctrine
The Organization of the Petroleum Exporting Countries b) Price will increase, but quantity is indeterminate
(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
, Within the context of the capital asset pricing model b) return on the market portfolio
(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
If the spread between the spot and forward exchange d) interest-rate parity
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
Douglass Interiors is considering two mutually exclusive e) You cannot determine which project should be accepted given the information
projects and have determined that the crossover rate for provided.
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.
A small number of people with complementary skills who d) team
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
