ETS MAJOR FIELD TEST (PRACTICE
TEST) BACHELOR'S DEGREE IN
BUSINESS EXAM QUESTIONS &
ANSWERS ALREADY GRADED A+
The common characteristic possessed by all assets is - correct answer ✔✔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? - correct answer ✔✔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? - correct answer ✔✔The
quantity of the goods
Which of the following is an appropriate Federal Reserve action to stimulate the United States
economy? - correct answer ✔✔Reducing the reserve requirement
Which of the following is true with regard to an exculpatory clause? - correct answer ✔✔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: -
correct answer ✔✔Strategy formulation
A group that develops naturally as a result of employees' interaction within an organization is
referred to as - correct answer ✔✔an informal group
,When employees use email, word processors, electronic scheduling / calendars, they are using
which of the following? - correct answer ✔✔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 - correct answer ✔✔earned value analysis (EVA)
High product differentiation is generally accompanied - correct answer ✔✔decreased emphasis
on competition based on price
The essence of common law is: - correct answer ✔✔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? - correct answer ✔✔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 - correct answer
✔✔return on the market portfolio
If the spread between the spot and forward exchange rates of two currencies equals the
interest rate difference between the two countries, this phenomenon is referred to as - correct
answer ✔✔interest-rate parity
Douglass Interiors is considering two mutually exclusive projects and have determined that the
crossover rate for these projects is 11.7 percent. Project A has an internal rate of return (IRR) of
15.3 percent and Project B has an IRR of 16.5 percent. Given this information, which one of the
, following statements is correct? - correct answer ✔✔You cannot determine which project
should be accepted given the information provided.
A small number of people with complementary skills who are committed to a common purpose,
a set of performance goals, and an approach for which they hold themselves mutually
accountable is referred to as a - correct answer ✔✔team
Manufacturing overhead includes: - correct answer ✔✔all manufacturing costs except direct
labor and direct materials
Sue and Neal are twins. Sue invests $5,000 at 7 percent when she is 25 years old. Neal invests
$5,000 at 7 percent when he is 30 years old. Both investments compound interest annually.
Both Sue and Neal retire at age 60. Which one of the following statements is correct assuming
that neither Sue nor Neal has withdrawn any money from their accounts? - correct answer
✔✔Sue will have more money than Neal as long as they retire at the same time
A sample of assistant professors on the business faculty at state supported institutions in Ohio
revealed the mean income to be $32,000 for 9 months with a standard deviation of $3,000.
Using Chebyshev's Theorem, what proportion of the faculty earns more than $26,000 but less
than $38,000? - correct answer ✔✔At least 75%
26,000 and 38,000 are two standard deviations away from the mean. Using 1-(1/k^2) where k =
2, we get 0.75
When a domestic firm permits a foreign company to manufacture and sell its product in
exchange for a fee or royalty, the process is termed - correct answer ✔✔c) licensing
In project management the term slack refers to the: - correct answer ✔✔amount of time an
activity can be delayed without delaying the project
TEST) BACHELOR'S DEGREE IN
BUSINESS EXAM QUESTIONS &
ANSWERS ALREADY GRADED A+
The common characteristic possessed by all assets is - correct answer ✔✔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? - correct answer ✔✔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? - correct answer ✔✔The
quantity of the goods
Which of the following is an appropriate Federal Reserve action to stimulate the United States
economy? - correct answer ✔✔Reducing the reserve requirement
Which of the following is true with regard to an exculpatory clause? - correct answer ✔✔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: -
correct answer ✔✔Strategy formulation
A group that develops naturally as a result of employees' interaction within an organization is
referred to as - correct answer ✔✔an informal group
,When employees use email, word processors, electronic scheduling / calendars, they are using
which of the following? - correct answer ✔✔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 - correct answer ✔✔earned value analysis (EVA)
High product differentiation is generally accompanied - correct answer ✔✔decreased emphasis
on competition based on price
The essence of common law is: - correct answer ✔✔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? - correct answer ✔✔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 - correct answer
✔✔return on the market portfolio
If the spread between the spot and forward exchange rates of two currencies equals the
interest rate difference between the two countries, this phenomenon is referred to as - correct
answer ✔✔interest-rate parity
Douglass Interiors is considering two mutually exclusive projects and have determined that the
crossover rate for these projects is 11.7 percent. Project A has an internal rate of return (IRR) of
15.3 percent and Project B has an IRR of 16.5 percent. Given this information, which one of the
, following statements is correct? - correct answer ✔✔You cannot determine which project
should be accepted given the information provided.
A small number of people with complementary skills who are committed to a common purpose,
a set of performance goals, and an approach for which they hold themselves mutually
accountable is referred to as a - correct answer ✔✔team
Manufacturing overhead includes: - correct answer ✔✔all manufacturing costs except direct
labor and direct materials
Sue and Neal are twins. Sue invests $5,000 at 7 percent when she is 25 years old. Neal invests
$5,000 at 7 percent when he is 30 years old. Both investments compound interest annually.
Both Sue and Neal retire at age 60. Which one of the following statements is correct assuming
that neither Sue nor Neal has withdrawn any money from their accounts? - correct answer
✔✔Sue will have more money than Neal as long as they retire at the same time
A sample of assistant professors on the business faculty at state supported institutions in Ohio
revealed the mean income to be $32,000 for 9 months with a standard deviation of $3,000.
Using Chebyshev's Theorem, what proportion of the faculty earns more than $26,000 but less
than $38,000? - correct answer ✔✔At least 75%
26,000 and 38,000 are two standard deviations away from the mean. Using 1-(1/k^2) where k =
2, we get 0.75
When a domestic firm permits a foreign company to manufacture and sell its product in
exchange for a fee or royalty, the process is termed - correct answer ✔✔c) licensing
In project management the term slack refers to the: - correct answer ✔✔amount of time an
activity can be delayed without delaying the project
