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ETS Major Field Test (Practice Test) Bachelor's Degree in Business 1 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 - CORRECT ANSWER: b) Tactical planning
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? - CORRECT
ANSWER: $116,000
$920,000 x 30% = 276,000
276,000 - 160,000 = $116,000
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: - CORRECT ANSWER: 5,000 units
$35 - $25 = $10
50,000 / 10 = 5,000
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? - CORRECT ANSWER: $618,000
$600,000 x 12% x 90/365 = $18,000
$600,000 + $18,000 = $618,000
A company's buying center encompasses: - CORRECT ANSWER: everyone who is involved in any aspect of the buying process
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? - CORRECT ANSWER: Lateral
A differentiation strategy enables a business to address the five competitive forces by -
CORRECT ANSWER: lessening competitive rivalry by distinguishing itself
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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? - CORRECT ANSWER: a) Liquidity
A group that develops naturally as a result of employees' interaction within an
organization is referred to as - CORRECT ANSWER: an informal group
A legal institution associated with an independent judiciary relying on case precedents
is called - CORRECT ANSWER: common law system
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?
- CORRECT ANSWER: Task environment
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: - CORRECT
ANSWER: Low effectiveness/low efficiency
A manufacturer estimates its factory overhead costs to be $30,000 and machine hours to be 4,000 for the year. If the actual hours worked on production total 3,800 and the actual factory overhead costs are $28,000, what is the amount of the over- or
underapplied factory overhead? - CORRECT ANSWER: $500 overapplied
Estimated: 30,000/4,000 = 7.5
Actual: 7.5 x 3,800 = 28,500
28,500 - 28,000 = 500
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): - CORRECT ANSWER: Process control system
A problem associated with equity theory is that: - CORRECT ANSWER: worker motivation is based on perceptions of fairness, and the perceptions workers have about their contributions are not always accurate
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
A project has a net present value of zero. Which one of the following best describes this project? - CORRECT ANSWER: The project's cash inflows equal its cash outflows in current dollar terms
A sample of assistant professors on the business faculty at state supported institutions in Ohio revealed the mean income to be $32,000 for 9 months with a standard deviation 2 / 3
of $3,000. Using Chebyshev's Theorem, what proportion of the faculty earns more than
$26,000 but less than $38,000? - CORRECT ANSWER: At least 75%
26,000 and 38,000 are two standard deviations away from the mean. Using 1-(1/k^2) where k = 2, we get 0.75
A small number of people with complementary skills who are committed to a common purpose, a set of performance goals, and an approach for which they hold themselves
mutually accountable is referred to as a - CORRECT ANSWER: team
A standard marketing strategy that is modified only minimally for use in each of the firm's foreign markets is a _____ marketing strategy. - CORRECT ANSWER: c) global
A standard procedure for numerically measuring a project's progress, forecasting its completion date and cost and providing measures of schedule and budget variation as activities are completed is referred to as - CORRECT ANSWER: earned value analysis (EVA)
A student received an A on the first test of the semester. The student wants to calculate the probability of scoring an A on the second test. Historically, the instructor knows that the joint probability of scoring A's on the first two tests is 0.5. Also, historically, the probability that a student scores and "A" on the second test given that a student scored an A on the first test is 0.9. What is the probability that a student will score an A on the
second test? - CORRECT ANSWER: 0.55
0.5/0.9 = 0.55
A SWOT analysis examines a company's: - CORRECT ANSWER: Strengths, Weaknesses, Opportunities, and Threats
A system whereby products are delivered to warehouses on a continual basis, where they are sorted, repackaged and distributed to stores without sitting in inventory is
known as - CORRECT ANSWER: cross-docking
A valid contract may be unenforceable for which reason(s)?
a) Failure to satisfy the Statute of Frauds.
b) Running of the Statute of Limitations
c) Both (A) and (B)
d) A valid contract is always enforceable. - CORRECT ANSWER: c) Both (A) and (B)
Abraham Maslow, noted psychologist, theorized that people were motivated by: -
CORRECT ANSWER: unmet needs
According to Trompenaar and Hampden-Turners classification, a culture with private life kept separate from work is called: - CORRECT ANSWER: Specific
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