ETS MAJOR FIELD TEST IN BUSINESS Latest

ETS MAJOR FIELD TEST IN BUSINESS Latest Update -500 Questions and 100% Verified Correct Answers Guaranteed A+

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) Lateral

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 (B) Leverage (C) Efficiency

(D) Profitability - CORRECT ANSWER: (A) Liquidity

A person (such as owner) delegating authority. - CORRECT ANSWER: Conflicts

between principals and agents.

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

(A) each of the 150 jobs (B) each of the jobs on the three critical paths (C) either Job J or Job K

(D) both Job J and Job K - CORRECT ANSWER: (C) either Job J or Job K

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

(A) committee (B) task force (C) group

(D) team - CORRECT ANSWER: (D) team

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Absolute advantage. - CORRECT ANSWER: The economic advantage one nation

enjoys that is absolutely superior to other nations.

Absorptive capacity - CORRECT ANSWER: The ability to recognize the value of new

information, assimilate it, and apply it.

Accommodative strategy. - CORRECT ANSWER: A strategy characterized by some

support from top managers, who may increasingly view CSR as a worthwhile endeavor.

Acquisition premium. - CORRECT ANSWER: The difference between the acquisition

price and the market value of target firms.

Acquisition. - CORRECT ANSWER: A transfer of the control of operations and

management from one firm (target) to another (acquirer), the former be coming a unit of the latter.

Adaptability. - CORRECT ANSWER: The ability to change supply chain configurations in response to longer-term changes in the environment and technology.

Administrative policy. - CORRECT ANSWER: Bureaucratic rules that make it harder to import foreign goods.

Agency costs. - CORRECT ANSWER: The costs associated with principal-agent

relationships.

Agency relationship. - CORRECT ANSWER: The relationship between principals (such as shareholders) and agents (such as professional managers).

Agency theory. - CORRECT ANSWER: A theory that focuses on principal-agent

relationships (or in short, agency relationships).

Agent. - CORRECT ANSWER: A person (such as manager) to whom authority is

delegated.

Agglomeration. - CORRECT ANSWER: Clustering of economic activities in certain

locations.

Agility. - CORRECT ANSWER: The ability to react quickly to unexpected shifts in supply and demand.

Alignment. - CORRECT ANSWER: Alignment of interests of various players.

All of the following are true regarding a seller's rights to reduce legal liability in the sale

of nonconsumer goods EXCEPT:

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(A) The seller can disclaim consequential damages if it is done clearly and conspicuously.(B) The seller can limit the remedy available to the buyer if he or she does so clearly and fairly.(C) The seller can place reasonable conditions on the warranty coverage and a shorter time limit of warranty coverage.(D) The seller can disclaim all implied warranties by simply stating that there are no

implied warranties. - CORRECT ANSWER: (D) The seller can disclaim all implied

warranties by simply stating that there are no implied warranties.

An information system that enables all business departments in the same firm to share relevant information and data is called

(A) an enterprise resource planning (ERP) system (B) a material requirements planning (MRP) system (C) a decision support system (DSS)

(D) a point-of-sale (POS) system - CORRECT ANSWER: (A) an enterprise resource

planning (ERP) system

Andean Community. - CORRECT ANSWER: A customs union in South America that

was launched in 1969.

Antidumping duty. - CORRECT ANSWER: Tariff s levied on imports that have been

"dumped" (selling below costs to "unfairly" drive domestic firms out of business).

Antidumping laws. - CORRECT ANSWER: Laws that make it illegal for an exporter to sell goods below cost abroad with the intent to raise prices after eliminating local rivals.

Antitrust laws. - CORRECT ANSWER: Laws that outlaw cartels (trusts).

Antitrust policy. - CORRECT ANSWER: Government policy designed to combat

monopolies and cartels.

Appreciation. - CORRECT ANSWER: An increase in the value of the currency.

Asia-Pacific Economic Cooperation {APEC). - CORRECT ANSWER: The official title for regional economic integration involving 21 member economies around the Pacific.

Association of Southeast Asian Nations {ASEAN). - CORRECT ANSWER: The

organization underpinning regional economic integration in Southeast Asia.

Attack. - CORRECT ANSWER: An initial set of actions to gain competitive advantage.

Australia-New Zealand Closer Economic Relations Trade Agreement {ANZCERTA or

CER). - CORRECT ANSWER: A free trade agreement between Australia and New

Zealand that was launched in 1983. 3 / 4

Balance of payments. - CORRECT ANSWER: A country's international transaction

statement, which includes merchandise trade, service trade, and capital movement.

Balance of trade. - CORRECT ANSWER: The aggregation of importing and exporting

that leads to the country-level trade surplus or deficit.

Balance sheet approach. - CORRECT ANSWER: A compensation approach that

balances the cost of living differences relative to parent country levels and adds a financial inducement to make the package attractive.

Bandwagon effect. - CORRECT ANSWER: The effect of investors moving in the same

direction at the same time, like a herd.

Bargaining power. - CORRECT ANSWER: Ability to extract favorable outcome from

negotiations due to one party's strengths.

Base of the pyramid. - CORRECT ANSWER: Economies where people make less than

$2,000 per capita per year.

Based on his scientific management theory, Frederick Taylor developed what pay principle?

(A) Hourly pay (B) Incentive pay (C) Profit sharing

(D) Monthly salary with bonus - CORRECT ANSWER: (B) Incentive pay

Beijing Consensus. - CORRECT ANSWER: A view that questions Washington

Consensus' belief in the superiority of private ownership over state owner ship in economic policy making, which is often associated with the position held by the Chinese government.

Benchmarking. - CORRECT ANSWER: Examining whether a firm has resources and

capabilities to per form a particular activity in a manner superior to competitors.

Bid rate. - CORRECT ANSWER: The price to buy a currency.

Blue ocean strategy. - CORRECT ANSWER: Strategy that focuses on developing new

markets ("blue ocean") and avoids attacking core markets defended by rivals, which is likely to result in a bloody price war or a "red ocean."

Bond. - CORRECT ANSWER: Loan issued by the firm and held by creditors.

Bondholder. - CORRECT ANSWER: Buyer of bonds.

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