[STUDY GUIDE] • HIGH-YIELD PRACTICE & REVIEW EDITION
ETS Major Field Test in Business
Exam Questions & Answers Verified
2026/2027 Edition Bachelor's Degree
Comprehensive Examination Question Bank • Concept Mapping
TOTAL QUESTIONS EXAM TOPICS RATIONALES
100 Questions 12 Modules 100% Verified
DOCUMENT OVERVIEW
This document contains 100 verified questions with correct answers covering various aspects of business
administration. Each item is designed to enhance understanding of key concepts such as financial
management, marketing strategies, and legal frameworks. It is suitable for exam preparation, course review,
and certification study.
EXAM BLUEPRINT & TOPIC DISTRIBUTION
Systematic breakdown of subject domains and exam coverage.
Topic Module Scope & Core Focus Questions Share (%)
Questions in this topic focus on financial principles, analysis,
Financial Management and decision-making. 9 Qs 9.0%
This topic covers marketing concepts, including product
Marketing Strategies differentiation and market analysis. 9 Qs 9.0%
Questions explore the role of information systems in business
Information Systems operations and decision-making. 9 Qs 9.0%
This topic addresses legal principles, contracts, and torts
Legal Environment of Business relevant to business operations. 9 Qs 9.0%
Economics and Market Questions focus on economic principles, market competition,
Structures and fiscal policies. 8 Qs 8.0%
This topic tests knowledge on project management concepts,
Project Management including planning and resource allocation. 8 Qs 8.0%
Confidential • Student Study Edition • Practice & Review Guide Page 1 of 37
,STUDENT STUDY & MASTERY EDITION PRACTICE & REVIEW GUIDE
Questions here involve statistical measures, probability, and
Statistical Analysis data analysis techniques. 8 Qs 8.0%
This topic assesses understanding of HR practices and
Human Resource Management organizational behavior. 8 Qs 8.0%
Questions cover global business operations, foreign direct
International Business investment, and trade agreements. 8 Qs 8.0%
Business Ethics and Social This topic tests knowledge of ethical considerations and
Responsibility corporate social responsibility in business. 8 Qs 8.0%
Questions focus on understanding cash flow statements and
Cash Flow Management liquidity management. 8 Qs 8.0%
This topic assesses strategic planning and decision-making
Decision Making and Strategy processes in organizations. 8 Qs 8.0%
Total Exam Coverage 12 Integrated Topic Modules 100 Qs 100.0%
Confidential • Student Study Edition • Practice & Review Guide Page 2 of 37
,STUDENT STUDY & MASTERY EDITION PRACTICE & REVIEW GUIDE
TOPIC 1: FINANCIAL MANAGEMENT
9 Questions • 9.0% of Exam • Questions in this topic focus on financial principles, analysis, and decision-making.
QUESTION 1
The common characteristic possessed by all assets is
a) Long life
b) Great monetary value
c) Tangible nature
d) Future economic benefit
Answer: D) Future economic benefit.
QUESTION 2
Which of the following is an appropriate Federal Reserve 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
Answer: C) Reducing the reserve requirement.
QUESTION 3
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.
Confidential • Student Study Edition • Practice & Review Guide Page 3 of 37
, STUDENT STUDY & MASTERY EDITION PRACTICE & REVIEW GUIDE
QUESTION 4
A company had sales of $920,000 and fixed costs were $160,000. What was the income
from operations if the contribution margin ratio was 30 percent?
a) $116,000
b) $276,000
c) $484,000
d) $644,000
Answer: A) $116,000.
QUESTION 5
Long-term plans focusing on those organizational objectives that will significantly
affect the firm for five or more years are usually referred to as _____ plans.
a) strategic
b) marketing
c) economic
d) Tactical
Answer: A) strategic.
QUESTION 6
A firm that would like to know whether it has enough cash to meet its bills would be
most likely to use which category of financial ratio?
a) Liquidity
b) Leverage
c) Efficiency
d) Profitability
Answer: A) Liquidity.
QUESTION 7
A project has a net present value of zero. Which one of the following best describes
this project?
a) The project has a zero percent rate of return.
Confidential • Student Study Edition • Practice & Review Guide Page 4 of 37
ETS Major Field Test in Business
Exam Questions & Answers Verified
2026/2027 Edition Bachelor's Degree
Comprehensive Examination Question Bank • Concept Mapping
TOTAL QUESTIONS EXAM TOPICS RATIONALES
100 Questions 12 Modules 100% Verified
DOCUMENT OVERVIEW
This document contains 100 verified questions with correct answers covering various aspects of business
administration. Each item is designed to enhance understanding of key concepts such as financial
management, marketing strategies, and legal frameworks. It is suitable for exam preparation, course review,
and certification study.
EXAM BLUEPRINT & TOPIC DISTRIBUTION
Systematic breakdown of subject domains and exam coverage.
Topic Module Scope & Core Focus Questions Share (%)
Questions in this topic focus on financial principles, analysis,
Financial Management and decision-making. 9 Qs 9.0%
This topic covers marketing concepts, including product
Marketing Strategies differentiation and market analysis. 9 Qs 9.0%
Questions explore the role of information systems in business
Information Systems operations and decision-making. 9 Qs 9.0%
This topic addresses legal principles, contracts, and torts
Legal Environment of Business relevant to business operations. 9 Qs 9.0%
Economics and Market Questions focus on economic principles, market competition,
Structures and fiscal policies. 8 Qs 8.0%
This topic tests knowledge on project management concepts,
Project Management including planning and resource allocation. 8 Qs 8.0%
Confidential • Student Study Edition • Practice & Review Guide Page 1 of 37
,STUDENT STUDY & MASTERY EDITION PRACTICE & REVIEW GUIDE
Questions here involve statistical measures, probability, and
Statistical Analysis data analysis techniques. 8 Qs 8.0%
This topic assesses understanding of HR practices and
Human Resource Management organizational behavior. 8 Qs 8.0%
Questions cover global business operations, foreign direct
International Business investment, and trade agreements. 8 Qs 8.0%
Business Ethics and Social This topic tests knowledge of ethical considerations and
Responsibility corporate social responsibility in business. 8 Qs 8.0%
Questions focus on understanding cash flow statements and
Cash Flow Management liquidity management. 8 Qs 8.0%
This topic assesses strategic planning and decision-making
Decision Making and Strategy processes in organizations. 8 Qs 8.0%
Total Exam Coverage 12 Integrated Topic Modules 100 Qs 100.0%
Confidential • Student Study Edition • Practice & Review Guide Page 2 of 37
,STUDENT STUDY & MASTERY EDITION PRACTICE & REVIEW GUIDE
TOPIC 1: FINANCIAL MANAGEMENT
9 Questions • 9.0% of Exam • Questions in this topic focus on financial principles, analysis, and decision-making.
QUESTION 1
The common characteristic possessed by all assets is
a) Long life
b) Great monetary value
c) Tangible nature
d) Future economic benefit
Answer: D) Future economic benefit.
QUESTION 2
Which of the following is an appropriate Federal Reserve 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
Answer: C) Reducing the reserve requirement.
QUESTION 3
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.
Confidential • Student Study Edition • Practice & Review Guide Page 3 of 37
, STUDENT STUDY & MASTERY EDITION PRACTICE & REVIEW GUIDE
QUESTION 4
A company had sales of $920,000 and fixed costs were $160,000. What was the income
from operations if the contribution margin ratio was 30 percent?
a) $116,000
b) $276,000
c) $484,000
d) $644,000
Answer: A) $116,000.
QUESTION 5
Long-term plans focusing on those organizational objectives that will significantly
affect the firm for five or more years are usually referred to as _____ plans.
a) strategic
b) marketing
c) economic
d) Tactical
Answer: A) strategic.
QUESTION 6
A firm that would like to know whether it has enough cash to meet its bills would be
most likely to use which category of financial ratio?
a) Liquidity
b) Leverage
c) Efficiency
d) Profitability
Answer: A) Liquidity.
QUESTION 7
A project has a net present value of zero. Which one of the following best describes
this project?
a) The project has a zero percent rate of return.
Confidential • Student Study Edition • Practice & Review Guide Page 4 of 37
