ETS MFT BUSINESS EXAM 2024-2025 QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS)
The principal difference between variable costing and absorption costingcenters
on:
a. whether variable manufacturing costs should be included as product costs
b. whether fixed manufacturing costs should be included as product costs
c. whether fixed manufacturing costs and fixed selling and administrativecosts
should be included as product costs
d. none of these.: B
General Bikes is debating which marketing research options to employ.The
traditional person-to-person methods have been effective; however, the new
director of market research is campaigning for online-based research. What
argument for this method might he/she use?
a. Consumers are more relaxed at home in front of their computers, thereforeit is
more likely the responses will be truthful
b. Online research has been standardized for each industry, making it easierto
understand them
c. A well-designed, Internet-based marketing research project can cost lessand
yield information faster than offline research
d. Person-to-person methods most often incorporate researcher bias into the
surveys and observations: C
Which of the following is an appropriate Federal Reserve action to stimulatethe
United States economy?
a. Selling government bonds on the open market
b. Increasing the discount rate
c. Reducing the reserve requirement
d. Cutting taxes: C
A small number of people with complementary skills who are committed toa
common purpose, a set of performance goals, and an approach for which they
hold themselves mutually accountable is referred to as a
a. committee
b. task force
c. group
d. team: D
,A company is considering producing a product for a new market. The fixedcosts
required for manufacturing and delivering the product is $50,000. Laborand
material costs are estimated to be approximately $25.00 per product. If the
product is sold for $35.00 each, the firm's break-even volume would be:
a. 50,000 units
b. 5,000 units
c. 2500 units
d. 500 units: B
A problem associated with equity theory is that:
a. it focuses on providing incentives for the long run when most workers are
mainly concerned with incentives that apply to their current situation
b. managers have a hard time applying it to real-world situations because of its
abstract nature
c. worker motivation is based on perceptions of fairness, and the perceptions
workers have about their contributions are not always accurate
d. it is concerned with the nature of the job itself rather than with what motivates
the workers who perform the job: C
All of the financial statements are for a period of time except the
a. Income statement
b. Owner's equity statement
c. Balance sheet
d. Statement of cash flows: C
By assembling computers only after customers have paid them for, result-ing in a
lower finished goods inventory, Dell Computer Co. achieved:
a. Increased quality
b. A competitive advantage
c. Increased responsiveness
d. Increased innovation
e. None of the above: B
The Bill of Rights refers to:
a. the inalienable rights found at the beginning of the Constitution
,b. the first ten amendments to the Constitution
c. a specific listing of individual rights found in the original text of the Consti-
tution.
d. a grouping of individual rights set forth by the United States Supreme Court
shortly after the Constitution was ratified by the states: B
Fiedler proposes that all of the following determine whether a task- orrelationship-
oriented style is more effective except:
a. Situational favorableness
b. Leader-member relations
c. Task structure
d. Position power: A
Which one of the following statements is correct given the following ex-change
rates?
US $ per 1 foreign unitCountry FRI THU
South Africa 0.1028 0.1023
Thailand 0.0284 0.0286
a. On Thursday, one U.S. dollar was equal to 0.1023 South African rand.
b. On Friday, one Thai baht was equal to $35.21.
c. Both the South African rand and the Thai baht appreciated against the U.S.dollar
from Thursday to Friday.
d. The South African rand appreciated from Thursday to Friday against the U.S.
dollar.
e. The U.S. dollar depreciated from Thursday to Friday against the Thai baht.: D
Family branding refers to a group of
a. similar brands of products from different makers
b. different brands of products from different makers within the same industry
c. different products marketed under a single brand name
d. similar products sold by small, family-owned firms: C
A project has a net present value of zero. Which one of the following best
describes this project?
a. The project has a zero percent rate of return.
b. The project requires no initial cash investment.
c. The project has no cash flows.
, d. The summation of all of the project's cash flows is zero.
e. The project's cash inflows equal its cash outflows in current dollar terms: E
A firm that would like to know whether it has enough cash to meet its billswould
be most likely to use which category of financial ratio?
a. Liquidity
b. Leverage
c. Efficiency
d. Profitability: A
A major competitor of XYZ, Inc. suddenly creates a new type of product thatmakes
XYZ's products obsolete. This is an example of which type of force in the
environment?
a. General environment
b. Task environment
c. Economic environment
d. Legal environment
e. Political environment: B
Which of the following is not one of the four primary functional areas of afirm?
a. human resources
b. legal
c. marketing
d. operations: B
When employees use email, word processors, electronic scheduling / cal- endars,
they are using which of the following?
a. Transaction processing systems
b. Process control systems
c. Office automation systems
d. Decision support systems: C
Which of the following statements about a systems flowchart is true?
a. It is used in systems design to define and describe each piece of data.
b. It is a method of writing programs using only three basic constructs:sequence,
selection,
and repetition.
CORRECT ANSWERS (VERIFIED ANSWERS)
The principal difference between variable costing and absorption costingcenters
on:
a. whether variable manufacturing costs should be included as product costs
b. whether fixed manufacturing costs should be included as product costs
c. whether fixed manufacturing costs and fixed selling and administrativecosts
should be included as product costs
d. none of these.: B
General Bikes is debating which marketing research options to employ.The
traditional person-to-person methods have been effective; however, the new
director of market research is campaigning for online-based research. What
argument for this method might he/she use?
a. Consumers are more relaxed at home in front of their computers, thereforeit is
more likely the responses will be truthful
b. Online research has been standardized for each industry, making it easierto
understand them
c. A well-designed, Internet-based marketing research project can cost lessand
yield information faster than offline research
d. Person-to-person methods most often incorporate researcher bias into the
surveys and observations: C
Which of the following is an appropriate Federal Reserve action to stimulatethe
United States economy?
a. Selling government bonds on the open market
b. Increasing the discount rate
c. Reducing the reserve requirement
d. Cutting taxes: C
A small number of people with complementary skills who are committed toa
common purpose, a set of performance goals, and an approach for which they
hold themselves mutually accountable is referred to as a
a. committee
b. task force
c. group
d. team: D
,A company is considering producing a product for a new market. The fixedcosts
required for manufacturing and delivering the product is $50,000. Laborand
material costs are estimated to be approximately $25.00 per product. If the
product is sold for $35.00 each, the firm's break-even volume would be:
a. 50,000 units
b. 5,000 units
c. 2500 units
d. 500 units: B
A problem associated with equity theory is that:
a. it focuses on providing incentives for the long run when most workers are
mainly concerned with incentives that apply to their current situation
b. managers have a hard time applying it to real-world situations because of its
abstract nature
c. worker motivation is based on perceptions of fairness, and the perceptions
workers have about their contributions are not always accurate
d. it is concerned with the nature of the job itself rather than with what motivates
the workers who perform the job: C
All of the financial statements are for a period of time except the
a. Income statement
b. Owner's equity statement
c. Balance sheet
d. Statement of cash flows: C
By assembling computers only after customers have paid them for, result-ing in a
lower finished goods inventory, Dell Computer Co. achieved:
a. Increased quality
b. A competitive advantage
c. Increased responsiveness
d. Increased innovation
e. None of the above: B
The Bill of Rights refers to:
a. the inalienable rights found at the beginning of the Constitution
,b. the first ten amendments to the Constitution
c. a specific listing of individual rights found in the original text of the Consti-
tution.
d. a grouping of individual rights set forth by the United States Supreme Court
shortly after the Constitution was ratified by the states: B
Fiedler proposes that all of the following determine whether a task- orrelationship-
oriented style is more effective except:
a. Situational favorableness
b. Leader-member relations
c. Task structure
d. Position power: A
Which one of the following statements is correct given the following ex-change
rates?
US $ per 1 foreign unitCountry FRI THU
South Africa 0.1028 0.1023
Thailand 0.0284 0.0286
a. On Thursday, one U.S. dollar was equal to 0.1023 South African rand.
b. On Friday, one Thai baht was equal to $35.21.
c. Both the South African rand and the Thai baht appreciated against the U.S.dollar
from Thursday to Friday.
d. The South African rand appreciated from Thursday to Friday against the U.S.
dollar.
e. The U.S. dollar depreciated from Thursday to Friday against the Thai baht.: D
Family branding refers to a group of
a. similar brands of products from different makers
b. different brands of products from different makers within the same industry
c. different products marketed under a single brand name
d. similar products sold by small, family-owned firms: C
A project has a net present value of zero. Which one of the following best
describes this project?
a. The project has a zero percent rate of return.
b. The project requires no initial cash investment.
c. The project has no cash flows.
, d. The summation of all of the project's cash flows is zero.
e. The project's cash inflows equal its cash outflows in current dollar terms: E
A firm that would like to know whether it has enough cash to meet its billswould
be most likely to use which category of financial ratio?
a. Liquidity
b. Leverage
c. Efficiency
d. Profitability: A
A major competitor of XYZ, Inc. suddenly creates a new type of product thatmakes
XYZ's products obsolete. This is an example of which type of force in the
environment?
a. General environment
b. Task environment
c. Economic environment
d. Legal environment
e. Political environment: B
Which of the following is not one of the four primary functional areas of afirm?
a. human resources
b. legal
c. marketing
d. operations: B
When employees use email, word processors, electronic scheduling / cal- endars,
they are using which of the following?
a. Transaction processing systems
b. Process control systems
c. Office automation systems
d. Decision support systems: C
Which of the following statements about a systems flowchart is true?
a. It is used in systems design to define and describe each piece of data.
b. It is a method of writing programs using only three basic constructs:sequence,
selection,
and repetition.
