Major Field Test Sample Questions for
Bachelor's Degree in Business
(A) secondary data usually cost less - ANS-1. In marketing research, a firm might consider using
secondary data over primary data because
(A) secondary data usually cost less
(B) secondary data are usually more accurate
(C) primary data are usually non specific
(D) primary data are likely to be outdated
(A) enforcement of internal policies - ANS-2. In organizational decision making, managers are
able to exercise the greatest degree of discretion in the
(A) enforcement of internal policies
(B) settlement of legal disputes
(C) restructuring of outstanding loans
(D) compliance with federal regulations
(C) current assets less short-term liabilities - ANS-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
(D) 700 - ANS-Questions 4-5 are based on the following information.
Dreamland Pillow Company sells the "Old Softy" model for $20 each. One pillow requires two
pounds of raw
material and one hour of direct labor to manufacture.
Raw material costs $3 per pound and direct production labor is paid $4 per hour. Fixed
supervisory costs are
$2,000 per month and Dreamland rents its factory on a five-year lease for $4,000 per month. All
costs are
considered costs of production.
4. How many pillows must Dreamland produce and sell each month to earn a monthly gross
profit of $1,000?
(A) 300
(B) 350
(C) 600
(D) 700
(C) 625 - ANS-5. Another firm has offered to produce "Old Softy" pillows and sell them to
Dreamland for $12 each. Dreamland
, cannot avoid the factory lease payments, but can avoid all labor costs if it does not produce
these pillows. Under
these conditions, how many "Old Softy" pillows must Dreamland sell to earn monthly gross
profits of $1,000?
(A) 417
(B) 500
(C) 625
(D) 875
(D) It requires proof of breach of a statutory or common-law duty - ANS-6. Which of the following
statements about the tort of negligence is true?
(A) It cannot be used as a basis for liability for defective products.
(B) It is a strict liability tort with no defenses.
(C) It requires proof of some intentional conduct.
(D) It requires proof of breach of a statutory or common-law duty
(C) It documents the sequence of processing steps that take place in an information system. -
ANS-7. Which of the following statements about a systems flowchart is true?
(A) It is used in systems design to define and describe each piece of data.
(B) It is a method of writing programs using only three basic constructs: sequence, selection,
and repetition.
(C) It documents the sequence of processing steps that take place in an information system.
(D) It documents the logical design of an information system.
(B) $5,080 - ANS-8. On May 31, Company O's general ledger shows a cash balance of $5,123.
The May 31 bank statement shows a
balance of $4,905. Other information is available as follows:
1. A May 31 deposit of $300 does not appear on the bank statement; but a $3 service charge
does.
2. A customer's $40 insufficient funds check has been returned with the bank statement.
3. Outstanding checks of $10, $15, and $100 are identified on May
What is the correct cash balance on May 31?
(A) $4,905
(B) $5,080
(C) $5,166
(D) $5,204
(B) return on the market portfolio - ANS-9. Within the context of the capital asset pricing model
(CAPM), the risk measure known as beta is often computed
by regressing the return of the company's stock against the
(A) return on the company's bonds
(B) return on the market portfolio
(C) change in the gross domestic product
(D) change in the consumer price index
Bachelor's Degree in Business
(A) secondary data usually cost less - ANS-1. In marketing research, a firm might consider using
secondary data over primary data because
(A) secondary data usually cost less
(B) secondary data are usually more accurate
(C) primary data are usually non specific
(D) primary data are likely to be outdated
(A) enforcement of internal policies - ANS-2. In organizational decision making, managers are
able to exercise the greatest degree of discretion in the
(A) enforcement of internal policies
(B) settlement of legal disputes
(C) restructuring of outstanding loans
(D) compliance with federal regulations
(C) current assets less short-term liabilities - ANS-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
(D) 700 - ANS-Questions 4-5 are based on the following information.
Dreamland Pillow Company sells the "Old Softy" model for $20 each. One pillow requires two
pounds of raw
material and one hour of direct labor to manufacture.
Raw material costs $3 per pound and direct production labor is paid $4 per hour. Fixed
supervisory costs are
$2,000 per month and Dreamland rents its factory on a five-year lease for $4,000 per month. All
costs are
considered costs of production.
4. How many pillows must Dreamland produce and sell each month to earn a monthly gross
profit of $1,000?
(A) 300
(B) 350
(C) 600
(D) 700
(C) 625 - ANS-5. Another firm has offered to produce "Old Softy" pillows and sell them to
Dreamland for $12 each. Dreamland
, cannot avoid the factory lease payments, but can avoid all labor costs if it does not produce
these pillows. Under
these conditions, how many "Old Softy" pillows must Dreamland sell to earn monthly gross
profits of $1,000?
(A) 417
(B) 500
(C) 625
(D) 875
(D) It requires proof of breach of a statutory or common-law duty - ANS-6. Which of the following
statements about the tort of negligence is true?
(A) It cannot be used as a basis for liability for defective products.
(B) It is a strict liability tort with no defenses.
(C) It requires proof of some intentional conduct.
(D) It requires proof of breach of a statutory or common-law duty
(C) It documents the sequence of processing steps that take place in an information system. -
ANS-7. Which of the following statements about a systems flowchart is true?
(A) It is used in systems design to define and describe each piece of data.
(B) It is a method of writing programs using only three basic constructs: sequence, selection,
and repetition.
(C) It documents the sequence of processing steps that take place in an information system.
(D) It documents the logical design of an information system.
(B) $5,080 - ANS-8. On May 31, Company O's general ledger shows a cash balance of $5,123.
The May 31 bank statement shows a
balance of $4,905. Other information is available as follows:
1. A May 31 deposit of $300 does not appear on the bank statement; but a $3 service charge
does.
2. A customer's $40 insufficient funds check has been returned with the bank statement.
3. Outstanding checks of $10, $15, and $100 are identified on May
What is the correct cash balance on May 31?
(A) $4,905
(B) $5,080
(C) $5,166
(D) $5,204
(B) return on the market portfolio - ANS-9. Within the context of the capital asset pricing model
(CAPM), the risk measure known as beta is often computed
by regressing the return of the company's stock against the
(A) return on the company's bonds
(B) return on the market portfolio
(C) change in the gross domestic product
(D) change in the consumer price index
