MBA assessment Question and
answers rated A+ 2025
Which of the following organizations is most likely to use project financing?
a) a small start-up
b) a financial services firm with an extensive client list
c) a large consumer goods company
d)a large public utility involved in infrastructure development - correct answer
✔d) a large public utility involved in infrastructure development
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 with
those of the rest of the industry
c) the starting salary for the new hires was not competitive with that of the rest
of the industry
d) the new hires lacked the basic skills required to learn the job - correct
answer ✔a) the training process to prepare the new hires for their assigned
tasks with inadequate
Prosco Ltd. 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 unit cost of $2.00.
If Prosco sells the defective units to the firm for $5.00 each, how would
Prosco's reported income be affected?
, (A) It would decrease by $4.50 per unit sold.
(B) It would decrease by $1.50 per unit sold.
(C) It would increase by $3.00 per unit sold.
(D) It would increase by $5.00 per unit sold. - correct answer ✔c) it would
increase by $3.00 per unit sold
Some companies have little, if any, net income or earnings, yet they seem to
have all the money they need for capital expenditures. 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 with many different banks.
(D) They issue warrants to their officers. - correct answer ✔A) they have
good cash flows
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 quarter's
dividend was $1.00 per share. The announcement indicates 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 answer ✔B) management is sending a
signal that the company has good projected future earnings
Wave Inc. is a telecommunications company that wants to become involved in
e-commerce. It has to decide whether to develop a business-to-business or
business-to-consumer strategy. As Wave's strategic planner, you have been
answers rated A+ 2025
Which of the following organizations is most likely to use project financing?
a) a small start-up
b) a financial services firm with an extensive client list
c) a large consumer goods company
d)a large public utility involved in infrastructure development - correct answer
✔d) a large public utility involved in infrastructure development
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 with
those of the rest of the industry
c) the starting salary for the new hires was not competitive with that of the rest
of the industry
d) the new hires lacked the basic skills required to learn the job - correct
answer ✔a) the training process to prepare the new hires for their assigned
tasks with inadequate
Prosco Ltd. 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 unit cost of $2.00.
If Prosco sells the defective units to the firm for $5.00 each, how would
Prosco's reported income be affected?
, (A) It would decrease by $4.50 per unit sold.
(B) It would decrease by $1.50 per unit sold.
(C) It would increase by $3.00 per unit sold.
(D) It would increase by $5.00 per unit sold. - correct answer ✔c) it would
increase by $3.00 per unit sold
Some companies have little, if any, net income or earnings, yet they seem to
have all the money they need for capital expenditures. 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 with many different banks.
(D) They issue warrants to their officers. - correct answer ✔A) they have
good cash flows
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 quarter's
dividend was $1.00 per share. The announcement indicates 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 answer ✔B) management is sending a
signal that the company has good projected future earnings
Wave Inc. is a telecommunications company that wants to become involved in
e-commerce. It has to decide whether to develop a business-to-business or
business-to-consumer strategy. As Wave's strategic planner, you have been
