MFT MBA Exam Questions and Answers
Which of the following organizations is more likely to use project financing?
A. a small start up
B. a financial services firm w an extensive client list
C. a large consumer goods company
D. a large public utility involved in infrastructure development - Correct Answers -D.
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 were not competitive w those of the rest
of the industry
C. the starting salary for the new hires was not competitive w that of the rest of the
industry
D. the new hires lacked the basic skills required to learn the job. - Correct Answers -A
Prosco 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 cost of $2. If Prosco sells the defective units to the firm for $5 each,
how would Prosco's reported income be affected?
A. It would decrease by $4.5 per unit sold
B. It would decrease by $1.50 per unit sold
C. It would increase by $3 per unit sold
D. It would increase by $5 per unit sold - Correct Answers -C
Some companies have little, if any, net income or earnings, yet they seem to have all
the money they need for capital expenditures and the like. Which of the following best
explains how such companies operate?
a. they have good cash flows
b. they lease capital equipment that does not show up on balance sheets
C. They have accounts w many different banks
D. They issue warrants to their officers - Correct Answers -A
, The Sintar Corporation has just announced that it will pay $1.10 per share in dividends
to its stockholders in the current quarter. The prior quarters dividend was $1 per share.
The announcement indicated which of the
following?
A. Management is sending a signal that it expects the economy to expand
B. Management is sending a signal that the company has good projected future
earnings
C. While the company was able to pay a higher dividend, management preferred a
more conservative figure
D. The company has overextended its cash position and may have liquidity problems in
the future - Correct Answers –B
The organization of petroleum exporting countries (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 & quantity will increase - Correct Answers -B
which of the following would most likely occur as a result of the United States
government's imposing tariffs on foreign steel imports?
A. the price of steel produced in the United States would decrease
B. the price of imported steel in the United States would decrease.
C. Employment in the united states steel industry would increase
D. Government tax revenue would fall - Correct Answers -C
in an economy the unemployment rate is 10 percent and the inflation rate is 1 percent.
An appropriate fiscal policy in this phase of the business cycle would be to
A. increase government spending
B. increase income taxes
C. Decrease transfer payments
D. Decrease the money supply - Correct Answers -A
which of the following is an appropriate federal reserve action to simulate 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 - Correct Answers -C
Which of the following organizations is more likely to use project financing?
A. a small start up
B. a financial services firm w an extensive client list
C. a large consumer goods company
D. a large public utility involved in infrastructure development - Correct Answers -D.
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 were not competitive w those of the rest
of the industry
C. the starting salary for the new hires was not competitive w that of the rest of the
industry
D. the new hires lacked the basic skills required to learn the job. - Correct Answers -A
Prosco 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 cost of $2. If Prosco sells the defective units to the firm for $5 each,
how would Prosco's reported income be affected?
A. It would decrease by $4.5 per unit sold
B. It would decrease by $1.50 per unit sold
C. It would increase by $3 per unit sold
D. It would increase by $5 per unit sold - Correct Answers -C
Some companies have little, if any, net income or earnings, yet they seem to have all
the money they need for capital expenditures and the like. Which of the following best
explains how such companies operate?
a. they have good cash flows
b. they lease capital equipment that does not show up on balance sheets
C. They have accounts w many different banks
D. They issue warrants to their officers - Correct Answers -A
, The Sintar Corporation has just announced that it will pay $1.10 per share in dividends
to its stockholders in the current quarter. The prior quarters dividend was $1 per share.
The announcement indicated which of the
following?
A. Management is sending a signal that it expects the economy to expand
B. Management is sending a signal that the company has good projected future
earnings
C. While the company was able to pay a higher dividend, management preferred a
more conservative figure
D. The company has overextended its cash position and may have liquidity problems in
the future - Correct Answers –B
The organization of petroleum exporting countries (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 & quantity will increase - Correct Answers -B
which of the following would most likely occur as a result of the United States
government's imposing tariffs on foreign steel imports?
A. the price of steel produced in the United States would decrease
B. the price of imported steel in the United States would decrease.
C. Employment in the united states steel industry would increase
D. Government tax revenue would fall - Correct Answers -C
in an economy the unemployment rate is 10 percent and the inflation rate is 1 percent.
An appropriate fiscal policy in this phase of the business cycle would be to
A. increase government spending
B. increase income taxes
C. Decrease transfer payments
D. Decrease the money supply - Correct Answers -A
which of the following is an appropriate federal reserve action to simulate 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 - Correct Answers -C
