Major Field Test (Business) SAMPLE TEST
UPDATED ACTUAL Questions and
CORRECT Answers
In marketing research, a firm might consider using secondary data over primary data because -
CORRECT ANSWER - secondary data usually cost less
In organizational decision making, managers are able to exercise the greatest degree of discretion
in the - CORRECT ANSWER - enforcement of internal policies
The term "net working capital" refers to - CORRECT ANSWER - current assets less short-
term liabilities
Dreamland Pillow Company sells the "Old Softy" model for $20 each. One pillow requires two
pounds of raw material and one hour of direct labor to manufacture.
Raw material costs $3 per pound and direct production labor is paid $4/hr. Fixed supervisory
costs are $2,000/month and Dreamland rents its factory on a five-year lease for $4,000/month.
All costs are considered costs of production.
How many pillows must Dreamland produce and sell each month to earn a monthly gross profit
of $1,000? - CORRECT ANSWER - 700
Dreamland Pillow Company sells the "Old Softy" model for $20 each. One pillow requires two
pounds of raw material and one hour of direct labor to manufacture.
Raw material costs $3 per pound and direct production labor is paid $4/hr. Fixed supervisory
costs are $2,000/month and Dreamland rents its factory on a five-year lease for $4,000/month.
All costs are considered costs of production.
, Another firm has offered to produce "Old Softy" pillows and sell them to Dreamland for $12
each. Dreamland cannot avoid the factory lease payments, but can avoid all labor costs if it does
not produce these pillows. Under these conditions, how many "Old Softy" pillows must
Dreamland sell to earn monthly gross profits of $1,000? - CORRECT ANSWER - 625
Which of the following statements about the tort of negligence is true? - CORRECT
ANSWER - it requires proof of breach of a statutory or common-law duty
Which of the following statements about a systems flowchart is true? - CORRECT
ANSWER - it documents the sequence of processing steps that take place in an
information system
On May 31, Company O's general ledger shows a cash balance of $5,123. The May 31 bank
statement shows a balance of $4,905. Other information is available as follows:
1. A May 31 deposit of $300 does not appear on the bank statement; but a $3 service charge does
2. A customers $40 insufficient funds check has been returned with the bank statement
3. Outstanding checks of $10, $15, and $100 are identified on May
What is the correct cash balance on May 31? - CORRECT ANSWER - $5,080
Within the context of the 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
A project consists of 150 jobs. The expected completion time for each job is given in days. The
project has three critical paths with two jobs in common, J and K. In order to finish the project
one day early, the completion time should be reduced one day for - CORRECT
ANSWER - either Job J or Job K
The Organization of the Petroleum Exporting Countries (OPEC) reduces production by 10% 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
UPDATED ACTUAL Questions and
CORRECT Answers
In marketing research, a firm might consider using secondary data over primary data because -
CORRECT ANSWER - secondary data usually cost less
In organizational decision making, managers are able to exercise the greatest degree of discretion
in the - CORRECT ANSWER - enforcement of internal policies
The term "net working capital" refers to - CORRECT ANSWER - current assets less short-
term liabilities
Dreamland Pillow Company sells the "Old Softy" model for $20 each. One pillow requires two
pounds of raw material and one hour of direct labor to manufacture.
Raw material costs $3 per pound and direct production labor is paid $4/hr. Fixed supervisory
costs are $2,000/month and Dreamland rents its factory on a five-year lease for $4,000/month.
All costs are considered costs of production.
How many pillows must Dreamland produce and sell each month to earn a monthly gross profit
of $1,000? - CORRECT ANSWER - 700
Dreamland Pillow Company sells the "Old Softy" model for $20 each. One pillow requires two
pounds of raw material and one hour of direct labor to manufacture.
Raw material costs $3 per pound and direct production labor is paid $4/hr. Fixed supervisory
costs are $2,000/month and Dreamland rents its factory on a five-year lease for $4,000/month.
All costs are considered costs of production.
, Another firm has offered to produce "Old Softy" pillows and sell them to Dreamland for $12
each. Dreamland cannot avoid the factory lease payments, but can avoid all labor costs if it does
not produce these pillows. Under these conditions, how many "Old Softy" pillows must
Dreamland sell to earn monthly gross profits of $1,000? - CORRECT ANSWER - 625
Which of the following statements about the tort of negligence is true? - CORRECT
ANSWER - it requires proof of breach of a statutory or common-law duty
Which of the following statements about a systems flowchart is true? - CORRECT
ANSWER - it documents the sequence of processing steps that take place in an
information system
On May 31, Company O's general ledger shows a cash balance of $5,123. The May 31 bank
statement shows a balance of $4,905. Other information is available as follows:
1. A May 31 deposit of $300 does not appear on the bank statement; but a $3 service charge does
2. A customers $40 insufficient funds check has been returned with the bank statement
3. Outstanding checks of $10, $15, and $100 are identified on May
What is the correct cash balance on May 31? - CORRECT ANSWER - $5,080
Within the context of the 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
A project consists of 150 jobs. The expected completion time for each job is given in days. The
project has three critical paths with two jobs in common, J and K. In order to finish the project
one day early, the completion time should be reduced one day for - CORRECT
ANSWER - either Job J or Job K
The Organization of the Petroleum Exporting Countries (OPEC) reduces production by 10% 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
