ETS Business Comprehensive Practice Exam Latest
Update Rated A+
Covers-
Accounting
Management
Marketing
Economics
Quantitative methods
International business
Ethics
Accounting principles
Which principle requires expenses to be recorded in the same period as revenues?
A. Matching principle
B. Cost principle
C. Conservatism principle
D. Consistency principle
Rationale: The matching principle aligns expenses with revenues earned.
Financial ratios
A high current ratio indicates:
A. Strong liquidity
B. Poor profitability
C. High leverage
D. Inefficient operations
Capital budgeting
Which method considers time value of money?
A. Payback period
B. Net present value
C. Accounting rate of return
D. Breakeven analysis
Marketing strategy
The 4 Ps of marketing are:
A. Product, Price, Place, Promotion
B. People, Process, Performance, Profit
C. Planning, Pricing, Promotion, Positioning
D. Product, People, Policy, Profit
Economics
Law of demand states:
,A. As price increases, demand decreases
B. As price increases, demand increases
C. Demand is independent of price
D. Demand equals supply
Management theory
Maslow’s hierarchy places self-actualization at:
A. The top
B. The bottom
C. Middle
D. Second level
Finance
Beta measures:
A. Market risk
B. Liquidity risk
C. Credit risk
D. Operational risk
Operations management
Just-in-time inventory reduces:
A. Holding costs
B. Labor costs
C. Marketing costs
D. Fixed costs
Business ethics
Insider trading is considered:
A. Illegal and unethical
B. Legal but unethical
C. Legal and ethical
D. Ethical but discouraged
International business
NAFTA was replaced by:
A. USMCA
B. WTO
C. EU
D. ASEAN
Accounting standards
GAAP stands for:
A. Generally Accepted Accounting Principles
B. Global Accounting and Audit Practices
C. Government Approved Accounting Policies
, D. General Audit and Accounting Procedures
Marketing research
Primary data is:
A. Collected firsthand
B. From published sources
C. From textbooks
D. From government reports
Economics
GDP measures:
A. Total value of goods and services produced
B. Total imports
C. Total exports
D. National debt
Finance
The weighted average cost of capital (WACC) represents:
A. Firm’s average financing cost
B. Firm’s average revenue
C. Firm’s average expenses
D. Firm’s average profit
Management
Delegation involves:
A. Assigning responsibility
B. Avoiding responsibility
C. Removing authority
D. Increasing workload
Operations
Six Sigma aims to reduce:
A. Defects
B. Costs
C. Employees
D. Marketing
Business law
A contract requires:
A. Offer, acceptance, consideration
B. Offer, rejection, payment
C. Offer, acceptance, breach
D. Offer, payment, delivery
Marketing
Market segmentation divides customers by:
Update Rated A+
Covers-
Accounting
Management
Marketing
Economics
Quantitative methods
International business
Ethics
Accounting principles
Which principle requires expenses to be recorded in the same period as revenues?
A. Matching principle
B. Cost principle
C. Conservatism principle
D. Consistency principle
Rationale: The matching principle aligns expenses with revenues earned.
Financial ratios
A high current ratio indicates:
A. Strong liquidity
B. Poor profitability
C. High leverage
D. Inefficient operations
Capital budgeting
Which method considers time value of money?
A. Payback period
B. Net present value
C. Accounting rate of return
D. Breakeven analysis
Marketing strategy
The 4 Ps of marketing are:
A. Product, Price, Place, Promotion
B. People, Process, Performance, Profit
C. Planning, Pricing, Promotion, Positioning
D. Product, People, Policy, Profit
Economics
Law of demand states:
,A. As price increases, demand decreases
B. As price increases, demand increases
C. Demand is independent of price
D. Demand equals supply
Management theory
Maslow’s hierarchy places self-actualization at:
A. The top
B. The bottom
C. Middle
D. Second level
Finance
Beta measures:
A. Market risk
B. Liquidity risk
C. Credit risk
D. Operational risk
Operations management
Just-in-time inventory reduces:
A. Holding costs
B. Labor costs
C. Marketing costs
D. Fixed costs
Business ethics
Insider trading is considered:
A. Illegal and unethical
B. Legal but unethical
C. Legal and ethical
D. Ethical but discouraged
International business
NAFTA was replaced by:
A. USMCA
B. WTO
C. EU
D. ASEAN
Accounting standards
GAAP stands for:
A. Generally Accepted Accounting Principles
B. Global Accounting and Audit Practices
C. Government Approved Accounting Policies
, D. General Audit and Accounting Procedures
Marketing research
Primary data is:
A. Collected firsthand
B. From published sources
C. From textbooks
D. From government reports
Economics
GDP measures:
A. Total value of goods and services produced
B. Total imports
C. Total exports
D. National debt
Finance
The weighted average cost of capital (WACC) represents:
A. Firm’s average financing cost
B. Firm’s average revenue
C. Firm’s average expenses
D. Firm’s average profit
Management
Delegation involves:
A. Assigning responsibility
B. Avoiding responsibility
C. Removing authority
D. Increasing workload
Operations
Six Sigma aims to reduce:
A. Defects
B. Costs
C. Employees
D. Marketing
Business law
A contract requires:
A. Offer, acceptance, consideration
B. Offer, rejection, payment
C. Offer, acceptance, breach
D. Offer, payment, delivery
Marketing
Market segmentation divides customers by:
