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Exam (elaborations)

ETS Major Field Test Practice Questions and Answers

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  • Module
  • 2024/2025
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  • 2024/2025

ETS Major Field Test Practice Questions and Answers 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 infrast...

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  • October 16, 2024
  • 21
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • 2024/2025
  • 2024/2025
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EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024




ETS Major Field Test Practice Questions
and Answers

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 - Answer✔✔-(D) A large public

utility involved in infrastructure development


After an extensive recruitment process to select well-qualified individuals, a large percent ofa

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.

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(D) The new hires lacked the basic skills required to learn the job. - Answer✔✔-(A) The training

process to prepare the new hires for their assigned tasks was inadequate


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. term-40


(D) It would increase by $5.00 per unit sold. - Answer✔✔-(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



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, EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024


banks.


(D) They issue warrants to their officers. - Answer✔✔-(A) They have good cash flows


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 comterm-40pany 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. - Answer✔✔-(B) Management is sending a signal that the comterm-40pany 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?



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