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ETS MFT MBA EXAM EXPECTED NEWEST VERSION QUESTION AND CORRECT ANSWERS.

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ETS MFT MBA EXAM EXPECTED NEWEST VERSION 2024-2025
100 QUESTION AND CORRECT ANSWERS.

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
(A) $18
(B) $20
(C) $22
(D) $24 - ANSWER-(D) $24

Increased globalization and technological change, particularly in
telecommunications, enable more organizations to adopt which of the
following organizational structures?
(A) Functional
(B) Matrix
(C) Network
(D) Mechanistic - ANSWER-(C) 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
(A) customer expectation and management perception of customer
expectation
(B) management perception of customer expectation and service quality
specifications
(C) customer expectation and internal management communication
(D) actual service delivery and how service quality was communicated -
ANSWER-(D) actual service delivery and how service quality was
communicated

All of the following can be considered in the evaluation of a business unit
EXCEPT
(A) wages paid to labor
(B) projected annual revenues of competitors
(C) the cost of materials used in the production process
(D) the price at which goods produced are sold - ANSWER-(B) 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?
(A) The amount that the company would have to pay to acquire a similar
product
(B) The variable cost of producing a unit of product
(C) The full absorption cost of producing a unit of product

, (D) The difference between the market price and the costs recaptured by
transferring internally - ANSWER-(D) The difference between the market
price and the costs recaptured by transferring internally

The Mart, a large retail chain, is considering whether or not to close down a
division. The division's projected income statement for the next year follows.

-Sales $20,000,000
-Cost of goods sold 17,000,000
-Gross profit 3,000,000
-Operating costs:
-Building rents $2,500,000
-Store clerk salaries 3,000,000
-Store utilities 1,200,000
-Allocated home office cost 700,000
-Total operating costs 7,400,000
-Anticipated loss ($4,400,000)

The building rents arise from long-term leases that cannot be cancelled. If
The Mart closed down this division, what would be the increase in company
profits?

(A) $700,000
(B) $1,200,000

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