ETS MFT MBA Questions with 100% Correct
Answers
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
(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.
(A) The training process to prepare the new hires for their assigned tasks was 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.
(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.
(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.
Answers
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
(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.
(A) The training process to prepare the new hires for their assigned tasks was 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.
(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.
(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.
