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ETS Major Field Test (Practice Test):
Bachelor's Degree in Business Questions and
Answers
The common characteristic possessed by all assets is
a) Long life
b) Great monetary value
c) Tangible nature
d) Future economic benefit
Ans: d) Future economic benefit
Which Foreign Direct Investment (FDI) attempts to acquire
particular resources at a lower real cost than could be obtained in
the home country?
a) Market-seeking FDI
b) Efficiency-seeking FDI
c) Resource-seeking FDI
d) Strategic asset-seeking FDI
Ans: c) Resource-seeking FDI
Under the Uniform Commercial Code (UCC) statute of frauds,
which of the following terms must be included in writing in order
to satisfy the writing requirement?
a) The price of the goods.
b) The quantity of the goods.
c) The signatures and names of the buyer and the seller
d) The time and place for delivery
Ans: b) The quantity of the goods
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, 2 | Page
Which of the following is an appropriate Federal Reserve action to
stimulate 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
Ans: c) Reducing the reserve requirement
Which of the following is true with regard to an exculpatory
clause?
a) An exculpatory clause excuses one party from liability for
his/her own tortious conduct.
b) Where one party has a superior bargaining position that has
enabled him/her to impose an exculpatory clause upon the other,
the courts are inclined to nullify the provision.
c) An exculpatory clause may be unenforceable for
unconscionability.
d) All of the above are true
Ans: d) All of the above are true
Managers at ABC, Inc. analyze the current situation of their
organization and then develop plans to help their organization to
accomplish its mission and achieve its goals. This is known as:
a) Synergy planning
b) Strategy formulation
c) Functional planning
d) SWOT analysis
Ans: b) Strategy formulation
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, 3 | Page
A group that develops naturally as a result of employees'
interaction within an organization is referred to as
a) an informal group
b) a formal group
c) a work-team group
d) a formation group
Ans: a) an informal group
When employees use email, word processors, electronic
scheduling / calendars, they are using which of the following?
a) Transaction processing systems
b) Process control systems
c) Office automation systems
d) Decision support systems
Ans: c) Office automation systems
A standard procedure for numerically measuring a project's
progress, forecasting its completion date and cost and providing
measures of schedule and budget variation as activities are
completed is referred to as
a) program evaluation and review technique (PERT)
b) the critical path method (CPM)
c) a Gantt chart
d) earned value analysis (EVA)
Ans: d) earned value analysis (EVA)
High product differentiation is generally accompanied by
a) higher market share
b) decreased emphasis on competition based on price
c) higher profit margins and lower costs
d) significant economies of scale
© 2025 All rights reserved
, 4 | Page
Ans: b) decreased emphasis on competition based on price
The essence of common law is:
a) its prospective nature.
b) the concept of stare decisis
c) its flexibility
d) the plain meaning doctrine
Ans: b) the concept of stare decisis
The Organization of the 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 and quantity will increase
Ans: b) Price will increase, but quantity is indeterminate
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
Ans: b) return on the market portfolio
© 2025 All rights reserved
ETS Major Field Test (Practice Test):
Bachelor's Degree in Business Questions and
Answers
The common characteristic possessed by all assets is
a) Long life
b) Great monetary value
c) Tangible nature
d) Future economic benefit
Ans: d) Future economic benefit
Which Foreign Direct Investment (FDI) attempts to acquire
particular resources at a lower real cost than could be obtained in
the home country?
a) Market-seeking FDI
b) Efficiency-seeking FDI
c) Resource-seeking FDI
d) Strategic asset-seeking FDI
Ans: c) Resource-seeking FDI
Under the Uniform Commercial Code (UCC) statute of frauds,
which of the following terms must be included in writing in order
to satisfy the writing requirement?
a) The price of the goods.
b) The quantity of the goods.
c) The signatures and names of the buyer and the seller
d) The time and place for delivery
Ans: b) The quantity of the goods
© 2025 All rights reserved
, 2 | Page
Which of the following is an appropriate Federal Reserve action to
stimulate 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
Ans: c) Reducing the reserve requirement
Which of the following is true with regard to an exculpatory
clause?
a) An exculpatory clause excuses one party from liability for
his/her own tortious conduct.
b) Where one party has a superior bargaining position that has
enabled him/her to impose an exculpatory clause upon the other,
the courts are inclined to nullify the provision.
c) An exculpatory clause may be unenforceable for
unconscionability.
d) All of the above are true
Ans: d) All of the above are true
Managers at ABC, Inc. analyze the current situation of their
organization and then develop plans to help their organization to
accomplish its mission and achieve its goals. This is known as:
a) Synergy planning
b) Strategy formulation
c) Functional planning
d) SWOT analysis
Ans: b) Strategy formulation
© 2025 All rights reserved
, 3 | Page
A group that develops naturally as a result of employees'
interaction within an organization is referred to as
a) an informal group
b) a formal group
c) a work-team group
d) a formation group
Ans: a) an informal group
When employees use email, word processors, electronic
scheduling / calendars, they are using which of the following?
a) Transaction processing systems
b) Process control systems
c) Office automation systems
d) Decision support systems
Ans: c) Office automation systems
A standard procedure for numerically measuring a project's
progress, forecasting its completion date and cost and providing
measures of schedule and budget variation as activities are
completed is referred to as
a) program evaluation and review technique (PERT)
b) the critical path method (CPM)
c) a Gantt chart
d) earned value analysis (EVA)
Ans: d) earned value analysis (EVA)
High product differentiation is generally accompanied by
a) higher market share
b) decreased emphasis on competition based on price
c) higher profit margins and lower costs
d) significant economies of scale
© 2025 All rights reserved
, 4 | Page
Ans: b) decreased emphasis on competition based on price
The essence of common law is:
a) its prospective nature.
b) the concept of stare decisis
c) its flexibility
d) the plain meaning doctrine
Ans: b) the concept of stare decisis
The Organization of the 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 and quantity will increase
Ans: b) Price will increase, but quantity is indeterminate
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
Ans: b) return on the market portfolio
© 2025 All rights reserved
