Business - Major Field Test [ACTUAL EXAM] LATEST VERSION [QUESTIONS AND
ANSWERS] WITH PRACTICE EXAM DETAILED AND VERIFIED FOR
GUARANTEED PASS- LATEST UPDATE 2025 GRADED A
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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 - CORRECT ANSWER (A) enforcement of
internal policies
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 - CORRECT ANSWER
(C) current assets less short-term liabilities
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?
(A) 300
(B) 350
(C) 600
(D) 700 - CORRECT ANSWER (D) 700
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" 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 - CORRECT ANSWER (C) 625
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. - CORRECT
ANSWER (D) It requires proof of breach of a statutory or common-law duty.
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. - CORRECT ANSWER
(C) It documents the sequence of processing steps that take place in an information
system.
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 - CORRECT ANSWER (B) $5,080
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 - CORRECT ANSWER (B) return on the
market portfolio
A project consists of 150 jobs. The expected completion time for each job is given in
days. The project has three critical paths with two jobs in common, J and K. In order to
finish the project one day early, the completion time should be reduced one day for
(A) each of the 150 jobs
(B) each of the jobs on the three critical paths
ANSWERS] WITH PRACTICE EXAM DETAILED AND VERIFIED FOR
GUARANTEED PASS- LATEST UPDATE 2025 GRADED A
Save
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 - CORRECT ANSWER (A) enforcement of
internal policies
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 - CORRECT ANSWER
(C) current assets less short-term liabilities
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?
(A) 300
(B) 350
(C) 600
(D) 700 - CORRECT ANSWER (D) 700
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" 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 - CORRECT ANSWER (C) 625
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. - CORRECT
ANSWER (D) It requires proof of breach of a statutory or common-law duty.
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. - CORRECT ANSWER
(C) It documents the sequence of processing steps that take place in an information
system.
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 - CORRECT ANSWER (B) $5,080
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 - CORRECT ANSWER (B) return on the
market portfolio
A project consists of 150 jobs. The expected completion time for each job is given in
days. The project has three critical paths with two jobs in common, J and K. In order to
finish the project one day early, the completion time should be reduced one day for
(A) each of the 150 jobs
(B) each of the jobs on the three critical paths
