ETS MBA Sample Questions and
Answers verified to pass 2025
Which of the following organizations is most likely to use project financing? -
correct answer ✔A large public utility involved in
infrastructure development
After an extensive recruitment process to select well-qualified individuals, a
large percent ofa company's new hires resigned within the first month of the
job. Which of the following is the most likely explanation for this situation? -
correct answer ✔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? - correct answer ✔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? - correct answer ✔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? - correct answer ✔Management is sending a signal that the
company has good projected future earnings
, Wave Inc. is a telecommunications company that wants to become involved in
e-commerce. It has to decide whether to develop a business-to-business or
business-to-consumer strategy. As Wave's strategic planner, you have been
asked to develop a business plan for each opportunity and present these to
senior management. The answer to which of the following questions is most
important to know before starting your plan? - correct answer ✔What are the
company's core competencies?
If you were the holder of a call option (having cost you $2) on some stock with
an exercise price of $20, it would be best for you to exercise your option when
the market price is at - correct answer ✔$24
Increased globalization and technological change, particularly in
telecommunications, enable more organizations to adopt which of the
following organizational structures? - correct answer ✔Network
A new local Super Store publicly announced that when more than three
people are standing in line at cash registers, additional checkout-lines will be
opened. After the announcement, customers quickly noticed that the
additional lines were not opened until six or seven people were standing in
line. This indicates a gap between - correct answer ✔actual service delivery
and how service quality
was communicated
All of the following can be considered in the evaluation of a business unit
EXCEPT - correct answer ✔projected annual revenues of competitors
The sales division of a corporation is considering an internal product transfer
because of excess demand. What is the lowest acceptable transfer price for
the product? - correct answer ✔The difference between the market price and
the costs recaptured by transferring internally
Answers verified to pass 2025
Which of the following organizations is most likely to use project financing? -
correct answer ✔A large public utility involved in
infrastructure development
After an extensive recruitment process to select well-qualified individuals, a
large percent ofa company's new hires resigned within the first month of the
job. Which of the following is the most likely explanation for this situation? -
correct answer ✔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? - correct answer ✔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? - correct answer ✔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? - correct answer ✔Management is sending a signal that the
company has good projected future earnings
, Wave Inc. is a telecommunications company that wants to become involved in
e-commerce. It has to decide whether to develop a business-to-business or
business-to-consumer strategy. As Wave's strategic planner, you have been
asked to develop a business plan for each opportunity and present these to
senior management. The answer to which of the following questions is most
important to know before starting your plan? - correct answer ✔What are the
company's core competencies?
If you were the holder of a call option (having cost you $2) on some stock with
an exercise price of $20, it would be best for you to exercise your option when
the market price is at - correct answer ✔$24
Increased globalization and technological change, particularly in
telecommunications, enable more organizations to adopt which of the
following organizational structures? - correct answer ✔Network
A new local Super Store publicly announced that when more than three
people are standing in line at cash registers, additional checkout-lines will be
opened. After the announcement, customers quickly noticed that the
additional lines were not opened until six or seven people were standing in
line. This indicates a gap between - correct answer ✔actual service delivery
and how service quality
was communicated
All of the following can be considered in the evaluation of a business unit
EXCEPT - correct answer ✔projected annual revenues of competitors
The sales division of a corporation is considering an internal product transfer
because of excess demand. What is the lowest acceptable transfer price for
the product? - correct answer ✔The difference between the market price and
the costs recaptured by transferring internally
