ETS MFT MBA Q & As (Verified Answers)
2026
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 - Correct Answers ✅(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. - Correct Answers ✅(A) The training process to
prepare the new hires for their assigned tasks was
inadequate.
,ETS MFT MBA Q & As (Verified Answers)
2026
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. - Correct
Answers ✅(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. - Correct Answers
✅(A) They have good cash flows.
, ETS MFT MBA Q & As (Verified Answers)
2026
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.
(C) While the company was able to pay a higher dividend,
management preferred a more conservative figure.
(D) The company has overextended its cash position and may
have liquidity problems in the future. - Correct Answers
✅(B) 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?
(A) What are the company's core competencies?
(B) What is the potential market size?
(C) What is the impact on the estimated revenue?
(D) Does the company have e-commerce
2026
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 - Correct Answers ✅(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. - Correct Answers ✅(A) The training process to
prepare the new hires for their assigned tasks was
inadequate.
,ETS MFT MBA Q & As (Verified Answers)
2026
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. - Correct
Answers ✅(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. - Correct Answers
✅(A) They have good cash flows.
, ETS MFT MBA Q & As (Verified Answers)
2026
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.
(C) While the company was able to pay a higher dividend,
management preferred a more conservative figure.
(D) The company has overextended its cash position and may
have liquidity problems in the future. - Correct Answers
✅(B) 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?
(A) What are the company's core competencies?
(B) What is the potential market size?
(C) What is the impact on the estimated revenue?
(D) Does the company have e-commerce
