ETS MFT BUSINESS EXAM Latest Update -

ETS MFT BUSINESS EXAM Latest Update - Actual Exam 200 Questions and 100% Verified Correct Answers Guaranteed A+

____ planning normally is performed by middle managers and typically has a one-year time frame

a) Strategic planning

b) Tactical planning

c) Operational planning

d) Contingency planning - CORRECT ANSWER: B

A company had sales of $920,000 and fixed costs were $160,000. What was the income from operations if the contribution margin ratio was 30 percent?

• $116,000

• $276,000

• $484,000

d) $644,000 - CORRECT ANSWER: A

A company is considering producing a product for a new market. The fixed costs required for manufacturing and delivering the product is $50,000. Labor and 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:

• 50,000 units

• 5,000 units

• 2500 units

d) 500 units - CORRECT ANSWER: B ($35 sold- $25 per product = $10)

then, ($50,000 fixed cost/$10)= 5,000 units

A company issued a $600,000, 12 percent, 90-day note payable to acquire an office building. What is the maturity value of the note?

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• $72,000

• $600,000

• $618,000

d) $672,000 - CORRECT ANSWER: C

A company's buying center encompasses:

• a representative from each department within an organization

• only a gatekeeper and a buyer

• everyone who is involved in any aspect of the buying process

d) an exclusive top-notch buying department - CORRECT ANSWER: C

A department manager telephoned two managers in other departments to discuss a cost savings idea that would benefit their departments as well as her own. Which of the following most accurately defines the communication channel that the manager was using?

a) Upward

b) Lateral

c) Downward

d) Hierarchical. - CORRECT ANSWER: B

A differentiation strategy enables a business to address the five competitive forces by

• lessening competitive rivalry by distinguishing itself

• having brand-loyal customers become more sensitive to prices

• increasing economies of scale

d) serving a broader market segment - CORRECT ANSWER: A

A firm that would like to know whether it has enough cash to meet its bills would be most likely to use which category of financial ratio?

a) Liquidity

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b) Leverage

c) Efficiency

d) Profitability - CORRECT ANSWER: A

a group of accounts. All the accounts of a business grouped together form a book called the

ledger (or general ledger). - CORRECT ANSWER: Ledger

A legal institution associated with an independent judiciary relying on case precedents is called

• common law system

• civil law system

• theocratic law system

d) None of the above - CORRECT ANSWER: A

A major competitor of XYZ, Inc. suddenly creates a new type of product that makes 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 - CORRECT ANSWER: B

A manager who chooses the wrong goals for the organization and makes poor use of

the organization's resources in pursuing these goals is said to have:

a) Low effectiveness/low efficiency

b) Low effectiveness/high efficiency

c) High effectiveness/low efficiency

d) High effectiveness/high efficiency

e) None of the above - CORRECT ANSWER: A 3 / 4

A model that describes the relationship between risk and expected return and that is used in the pricing of risky securities. The general idea behind CAPM is that investors

need to be compensated in two ways: time value of money and risk. - CORRECT

ANSWER: CAPM (Capital Asset Pricing Model)

A nuclear power plant uses electronic sensors linked to computers to continually monitor processes and make instant (real-time) adjustments that control the power

generation process. This is an example of a(n):

a) Transaction processing system

b) Decision support system

c) Enterprise collaboration system

d) Process control system - CORRECT ANSWER: D

A problem associated with equity theory is that:

• it focuses on providing incentives for the long run when most workers are mainly

concerned with incentives that apply to their current situation

• managers have a hard time applying it to real-world situations because of its abstract

nature

• worker motivation is based on perceptions of fairness, and the perceptions workers

have about their contributions are not always accurate

• it is concerned with the nature of the job itself rather than with what motivates the

workers who perform the job - CORRECT ANSWER: C

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

• each of the 150 jobs

• each of the jobs on the three critical paths

• either Job J or Job K

d) both Job J and Job K - CORRECT ANSWER: C

A project has a net present value of zero. Which one of the following best describes this project?

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