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ETS MBA STUDY GUIDE EXAM QUESTIONS AND ANSWERS WITH
SOLUTIONS UPDATED!!!
1. Which of the following organizations is most likely
to use project financing?
(A) A small start-up
(B) A financial services firm with an extensive
client list
(C) A large consumer goods company
(D) A large public utility involved in
infrastructure development - ANSWER D
2. After an extensive recruitment process to select
well-qualified individuals, a large percent of
a company's new hires resigned within the first
month of the job. Which of the following is the
most likely explanation for this situation?
(A) The training process to prepare the new hires
for their assigned tasks was inadequate.
(B) The health benefits provided by the company
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were not competitive with those of the rest
of the industry.
(C) The starting salary for the new hires was not
competitive with that of the rest of the
industry.
(D) The new hires lacked the basic skills required
to learn the job. - ANSWER A
3. Prosco Ltd. employs a process cost system.
Inspection of units occurs at the 50 percent mark.
Defective units are then removed from the process,
and their cost ($4.50) is absorbed by the good units.
Prosco has recently been approached by a firm
wishing to buy the defective units for a special use.
The firm would require Prosco to modify the
defective units at a unit cost of $2.00. If Prosco
sells the defective units to the firm for $5.00 each,
how would Prosco's reported income be affected?
(A) It would decrease by $4.50 per unit sold.
ETS MBA STUDY GUIDE EXAM QUESTIONS AND ANSWERS WITH
SOLUTIONS UPDATED!!!
1. Which of the following organizations is most likely
to use project financing?
(A) A small start-up
(B) A financial services firm with an extensive
client list
(C) A large consumer goods company
(D) A large public utility involved in
infrastructure development - ANSWER D
2. After an extensive recruitment process to select
well-qualified individuals, a large percent of
a company's new hires resigned within the first
month of the job. Which of the following is the
most likely explanation for this situation?
(A) The training process to prepare the new hires
for their assigned tasks was inadequate.
(B) The health benefits provided by the company
, Page |2
were not competitive with those of the rest
of the industry.
(C) The starting salary for the new hires was not
competitive with that of the rest of the
industry.
(D) The new hires lacked the basic skills required
to learn the job. - ANSWER A
3. Prosco Ltd. employs a process cost system.
Inspection of units occurs at the 50 percent mark.
Defective units are then removed from the process,
and their cost ($4.50) is absorbed by the good units.
Prosco has recently been approached by a firm
wishing to buy the defective units for a special use.
The firm would require Prosco to modify the
defective units at a unit cost of $2.00. If Prosco
sells the defective units to the firm for $5.00 each,
how would Prosco's reported income be affected?
(A) It would decrease by $4.50 per unit sold.
