ETS Major Field Test (Practice Test): Bachelor's Degree in Business Questions with Verified
Answers| Latest Update Graded A+
Which of the following consists of factors that influence consumer buying power and marketing
strategies? economic environment
Steel, paper, paints, and chemicals are examples of industries that most likely use
continuous production systems
A company is considering producing a product for a new market. The fixed costs required for
manufacturing and delivering the product is $50,000. Labor and material costs are estimated to
be approximately $25.00 per product. If the product is sold for $35.00 each, the firm's break-
even volume would be: 5,000 units
$35 - $25 = $10
50, = 5,000
All of the financial statements are for a period of time except the
a) Income statement
b) Owner's equity statement
c) Balance sheet
d) Statement of cash flows c) Balance sheet
The Bill of Rights refers to: the first ten amendments to the Constitution
Which one of the following statements is correct given the following exchange rates?
US $ per 1 foreign unit
,Country FRI THU
South Africa 0.1028 0.1023
Thailand 0.0284 0.0286 The South African rand appreciated from Thursday to Friday against
the U.S. dollar.
Family branding refers to a group of: different products marketed under a single brand
name
A major competitor of XYZ, Inc. suddenly creates a new type of product that makes XYZ's
products obsolete. This is an example of which type of force in the environment? Task
environment
Which of the following statements about a systems flowchart is true? It documents the
sequence of processing steps that take place in an information system.
In general, the __________ difficult it is for an organization to enter an industry as a new
competitor, the __________ are the barriers to entry to this industry More; higher
Only one of the following statements is false at the long-run equilibrium for a firm in a
monopolistically competitive industry. Which one is false?
a) Price equals Average Total Cost, like a competitive firm
b) Price exceeds marginal cost, like a monopolist
c) Firms make zero economic profit, like a competitive firm
d) Firms produce at the bottom of the ATC curve, like a competitive firm d) Firms produce at
the bottom of the ATC curve, like a competitive firm
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.
Another firm has offered to produce "Old Softy" 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? 625
$20 - $12 = $8
5,000/ $8 = 625
When a trial is conducted with a jury, the judge determines issues of ____ and the jury
determines questions of ____ law, fact
What is the major distinction between executive and independent agencies? The president
has greater control over executive agencies.
Which of the following terms refers to the phenomenon in which group members are pressured
to conform in decision making? Groupthink
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.
How many pillows must Dreamland produce and sell each month to earn a monthly gross profit
of $1,000? 700
$20 - $10 ($6 +$4) = $10
7,000/ 10 = 700
Answers| Latest Update Graded A+
Which of the following consists of factors that influence consumer buying power and marketing
strategies? economic environment
Steel, paper, paints, and chemicals are examples of industries that most likely use
continuous production systems
A company is considering producing a product for a new market. The fixed costs required for
manufacturing and delivering the product is $50,000. Labor and material costs are estimated to
be approximately $25.00 per product. If the product is sold for $35.00 each, the firm's break-
even volume would be: 5,000 units
$35 - $25 = $10
50, = 5,000
All of the financial statements are for a period of time except the
a) Income statement
b) Owner's equity statement
c) Balance sheet
d) Statement of cash flows c) Balance sheet
The Bill of Rights refers to: the first ten amendments to the Constitution
Which one of the following statements is correct given the following exchange rates?
US $ per 1 foreign unit
,Country FRI THU
South Africa 0.1028 0.1023
Thailand 0.0284 0.0286 The South African rand appreciated from Thursday to Friday against
the U.S. dollar.
Family branding refers to a group of: different products marketed under a single brand
name
A major competitor of XYZ, Inc. suddenly creates a new type of product that makes XYZ's
products obsolete. This is an example of which type of force in the environment? Task
environment
Which of the following statements about a systems flowchart is true? It documents the
sequence of processing steps that take place in an information system.
In general, the __________ difficult it is for an organization to enter an industry as a new
competitor, the __________ are the barriers to entry to this industry More; higher
Only one of the following statements is false at the long-run equilibrium for a firm in a
monopolistically competitive industry. Which one is false?
a) Price equals Average Total Cost, like a competitive firm
b) Price exceeds marginal cost, like a monopolist
c) Firms make zero economic profit, like a competitive firm
d) Firms produce at the bottom of the ATC curve, like a competitive firm d) Firms produce at
the bottom of the ATC curve, like a competitive firm
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.
Another firm has offered to produce "Old Softy" 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? 625
$20 - $12 = $8
5,000/ $8 = 625
When a trial is conducted with a jury, the judge determines issues of ____ and the jury
determines questions of ____ law, fact
What is the major distinction between executive and independent agencies? The president
has greater control over executive agencies.
Which of the following terms refers to the phenomenon in which group members are pressured
to conform in decision making? Groupthink
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.
How many pillows must Dreamland produce and sell each month to earn a monthly gross profit
of $1,000? 700
$20 - $10 ($6 +$4) = $10
7,000/ 10 = 700
