ETS MAJOR FIELD TEST MBA
EXAM QUESTIONS AND
CORRECT SOLUTIONS 2025
GRADED A+.
1/6
, 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: D. A large publicutility involved in infrastructure
development
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 wasinadequate.
B. The health benefits provided by the company were not competitive withthose of the rest of the industry.
C. The starting salary for the new hire was not competitive with that of the restof the industry.
D. The new hires lacked the basic skills required to learn the job.: A.The trainingprocess to prepare the new hires for
their assigned tasks was inadequate.
3. Prosco Ltd. employs a process cost system. Inspection of units occurs atthe 50 percent mark. Defective units
are then removed from the process, andtheir cost ($4.50) is absorbed by the goods 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 cost unit of
$2.00. If presco sells the defective units to the firm for $5.00 each, how wouldProsco's reported income be affected?
A. It would decrease by $4.50 per unit sold.
B. It would decrease by $ 1.50 per unit sold
C. It would decrease by $3.00 per unit sold
D. It would decrease by $5.00 per unit sold: C. It would decrease by $3.00 perunit sold
4. Some companies have little, if any, net income or earnings, yet they seem to have all the money they need for
capital expenditures. Which of the followingbest explains how such companies operate?
A. They have good cash flows.
B. They lease capital equipment that does not show up on balance sheets.
2/6
EXAM QUESTIONS AND
CORRECT SOLUTIONS 2025
GRADED A+.
1/6
, 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: D. A large publicutility involved in infrastructure
development
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 wasinadequate.
B. The health benefits provided by the company were not competitive withthose of the rest of the industry.
C. The starting salary for the new hire was not competitive with that of the restof the industry.
D. The new hires lacked the basic skills required to learn the job.: A.The trainingprocess to prepare the new hires for
their assigned tasks was inadequate.
3. Prosco Ltd. employs a process cost system. Inspection of units occurs atthe 50 percent mark. Defective units
are then removed from the process, andtheir cost ($4.50) is absorbed by the goods 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 cost unit of
$2.00. If presco sells the defective units to the firm for $5.00 each, how wouldProsco's reported income be affected?
A. It would decrease by $4.50 per unit sold.
B. It would decrease by $ 1.50 per unit sold
C. It would decrease by $3.00 per unit sold
D. It would decrease by $5.00 per unit sold: C. It would decrease by $3.00 perunit sold
4. Some companies have little, if any, net income or earnings, yet they seem to have all the money they need for
capital expenditures. Which of the followingbest explains how such companies operate?
A. They have good cash flows.
B. They lease capital equipment that does not show up on balance sheets.
2/6
