ETS MFT MBA EXAM QUESTIONS AND ANSWERS 100%
VERIFIED CORRECT GUARANTEED SUCCESS NEW!!
2025/2026
Which of the following organiza ons 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 u lity involved in
infrastructure development - Correct Answers (D) A large public u lity involved in
infrastructure development
A&er 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 explana on for this situa on?
(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 compe ve with those of the rest of
the industry.
(C) The star ng salary for the new hires was not compe ve with that of the rest of the
industry.
(D) The new hires lacked the basic skills required to learn the job. - Correct Answers (A) The
training process to prepare the new hires for their assigned tasks was inadequate.
Prosco Ltd. employs a process cost system. Inspec on of units occurs at the 50 percent mark.
Defec ve 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 defec ve units for a special use. The firm would require Prosco to
, modify the defec ve units at a unit cost of $2.00. If Prosco sells the defec ve 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. - Correct Answers (C) It would increase by $3.00
per unit sold.
Some companies have li8le, 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. - Correct Answers (A) They have good cash flows.
The Sintar Corpora on 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.
(C) While the company was able to pay a higher dividend, management preferred a more
conserva ve figure.
(D) The company has overextended its cash posi on and may have liquidity problems in the
future. - Correct Answers (B) Management is sending a signal that the company has good
projected future earnings.
VERIFIED CORRECT GUARANTEED SUCCESS NEW!!
2025/2026
Which of the following organiza ons 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 u lity involved in
infrastructure development - Correct Answers (D) A large public u lity involved in
infrastructure development
A&er 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 explana on for this situa on?
(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 compe ve with those of the rest of
the industry.
(C) The star ng salary for the new hires was not compe ve with that of the rest of the
industry.
(D) The new hires lacked the basic skills required to learn the job. - Correct Answers (A) The
training process to prepare the new hires for their assigned tasks was inadequate.
Prosco Ltd. employs a process cost system. Inspec on of units occurs at the 50 percent mark.
Defec ve 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 defec ve units for a special use. The firm would require Prosco to
, modify the defec ve units at a unit cost of $2.00. If Prosco sells the defec ve 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. - Correct Answers (C) It would increase by $3.00
per unit sold.
Some companies have li8le, 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. - Correct Answers (A) They have good cash flows.
The Sintar Corpora on 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.
(C) While the company was able to pay a higher dividend, management preferred a more
conserva ve figure.
(D) The company has overextended its cash posi on and may have liquidity problems in the
future. - Correct Answers (B) Management is sending a signal that the company has good
projected future earnings.
