ETS MFT BUSINESS NEW EXAM QUESTIONS AND CORRECT ANSWERS
(A+) 100% VERIFIED
With regard to the capital asset pricing model (CAPM), the risk measure referred to as
beta is typically calculated by regressing the return of the company's stock against?
a. return on the company's bond
b. return on the marlet portfilio
c. change in Gross Domestic Product
d. change in the Consumer Price Index - ANSWER b. Market portfolio return
A Project has 150 activities. The duration of each activity is shown in days. The project
has 3 critical paths and 2 activities, J & K are common to all 3. To complete the project 1
day earlier the duration should be reduced 1 day for?
a. each of the 150 jobs
b. each of the jobs on the 3 critical paths
c. either job J or K
d. both job J and K - ANSWER Either Job J or K
The Organization of the Petroleum Exporting Countries (OPEC) reduces production by
10% 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 in indeterminate
c. quantity will increase, but price is indeterminate
,d. both price and quantity will increase - ANSWER b. price will increase, but quantity is
indeterminate
Which of the following would most likely occur as a result of the US government's
imposing tariffs on foreign steel imports?
a. Price of steel produced in the US would decrease
b. Price of imported steel in the US would decrease
c. Employment in the US steel industry would increase
d. Government tax revenue would fall - ANSWER c. Employment in the US steel industry
would increase
The term "net working capital" refer to:
a. inventories, receivables and current notes & investments
b. assets divided by liabilities
c. current assets less (-) short term liabilities
d. net assets left over after subtracting cost of goods sold (COGS) - ANSWER c. current
assets less (-) short term liabilities
Dreamland Pillows: Q4: How many pillows must dreamland produce and sell each month
to earn a gross profit of $1000?
(model =$20. 1 pillow =2pds=$6 material cost. 1 hr of labor =$4. Fixed cost $6000)
a. 300
b. 350
c. 600
d. 700 - ANSWER 700
, (20x)-(6x+4x+6000)=1000
Dreamland Pillows. Q5: Another firm can produce pillows and sell them to Dreamland
for $12 each. They can avoid labor costs, how many pillows must they sell to make a net
profit of $1,000?
(model =$20. 1 pillow =2pds=$6 material cost. 1 hr of labor =$4. Fixed cost $6000
(supervisory cost 2000, factory cost 4,000)
a. 417
b. 500
c. 625
d. 875 - ANSWER 625
20x-4000-12x=1000
(4000 is the factory cost, 12 is the new cost for "production")
Which of the following statements about tort negligence is true?
a. it cannot be used as a basis for liability for defective products
b. it is strictly tort with no defenses
c. it requires proof of some intentional conduct
d. it requires proof of breach of statutory/common-law duty - ANSWER d. It requires
proof of breach of statutory/common-law duty
__________________is a financial statement that reports the assets, liabilities, and
shareholders' equity of a company at a particular point in time and serves as a basis for
(A+) 100% VERIFIED
With regard to the capital asset pricing model (CAPM), the risk measure referred to as
beta is typically calculated by regressing the return of the company's stock against?
a. return on the company's bond
b. return on the marlet portfilio
c. change in Gross Domestic Product
d. change in the Consumer Price Index - ANSWER b. Market portfolio return
A Project has 150 activities. The duration of each activity is shown in days. The project
has 3 critical paths and 2 activities, J & K are common to all 3. To complete the project 1
day earlier the duration should be reduced 1 day for?
a. each of the 150 jobs
b. each of the jobs on the 3 critical paths
c. either job J or K
d. both job J and K - ANSWER Either Job J or K
The Organization of the Petroleum Exporting Countries (OPEC) reduces production by
10% 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 in indeterminate
c. quantity will increase, but price is indeterminate
,d. both price and quantity will increase - ANSWER b. price will increase, but quantity is
indeterminate
Which of the following would most likely occur as a result of the US government's
imposing tariffs on foreign steel imports?
a. Price of steel produced in the US would decrease
b. Price of imported steel in the US would decrease
c. Employment in the US steel industry would increase
d. Government tax revenue would fall - ANSWER c. Employment in the US steel industry
would increase
The term "net working capital" refer to:
a. inventories, receivables and current notes & investments
b. assets divided by liabilities
c. current assets less (-) short term liabilities
d. net assets left over after subtracting cost of goods sold (COGS) - ANSWER c. current
assets less (-) short term liabilities
Dreamland Pillows: Q4: How many pillows must dreamland produce and sell each month
to earn a gross profit of $1000?
(model =$20. 1 pillow =2pds=$6 material cost. 1 hr of labor =$4. Fixed cost $6000)
a. 300
b. 350
c. 600
d. 700 - ANSWER 700
, (20x)-(6x+4x+6000)=1000
Dreamland Pillows. Q5: Another firm can produce pillows and sell them to Dreamland
for $12 each. They can avoid labor costs, how many pillows must they sell to make a net
profit of $1,000?
(model =$20. 1 pillow =2pds=$6 material cost. 1 hr of labor =$4. Fixed cost $6000
(supervisory cost 2000, factory cost 4,000)
a. 417
b. 500
c. 625
d. 875 - ANSWER 625
20x-4000-12x=1000
(4000 is the factory cost, 12 is the new cost for "production")
Which of the following statements about tort negligence is true?
a. it cannot be used as a basis for liability for defective products
b. it is strictly tort with no defenses
c. it requires proof of some intentional conduct
d. it requires proof of breach of statutory/common-law duty - ANSWER d. It requires
proof of breach of statutory/common-law duty
__________________is a financial statement that reports the assets, liabilities, and
shareholders' equity of a company at a particular point in time and serves as a basis for
