ETS Major Field Test – Business (Bachelor’s): A+ Graded
End Term Exam
In an economy the unemployment rate is 10 percent and the inflation rate is 1 percent. An
appropriate fiscal policy in this phase of the business cycle would be to
a) increase government spending
b) increase income taxes
c) decrease transfer payments
d) decrease the money supply - ✔✔a) increase government spending
In ___________, provincial governments play a substantial role in trade and investment regulation
a) China
b) Norway
c) Indonesia
d) Canada - ✔✔d) Canada
Web 2.0 is best represented by which of the following phenomena?
a) Social networking sites
b) Word processing
c) Internet browsers
d) Text messaging - ✔✔a) Social networking sites
Business torts consist of:
a) interference with contractual relations.
b) disparagement.
,c) fraudulent misrepresentation
d) All of the above - ✔✔d) All of the above
Officers and directors of a corporation owe to the corporation the subordination of their self-interest to
the interest of the corporation and owe constant loyalty to the corporation. This duty is the:
a) fiduciary duty
b) business judgment duty
c) duty of indemnification
d) duty of diligence - ✔✔a) fiduciary duty
Which of the following is not part of the accounting process?
a) Recording
b) Identifying
c) Financial decision making
d) Communicating - ✔✔c) Financial decision making
In organizational decision making, managers are able to exercise the greatest degree of discretion in the
a) enforcement of internal policies
b) settlement of legal disputes
c) restructuring of outstanding loans
d) compliance with federal regulations. - ✔✔a) enforcement of internal policies
Money is the key motivator in
a) Herzberg's motivation-hygiene theory
b) Maslow's hierarchy of needs
,c) McGregor's Theory X and Theory Y
d) Taylor's scientific management - ✔✔d) Taylor's scientific management
The incomes of a group of 50 loan applicants are obtained. Which level of measurement is income?
a) Nominal
b) Ordinal
c) Interval
d) Ratio
e) None of the above - ✔✔d) Ratio
Saint Martin Hospital boasts one of the world's leading medical imaging programs. Its radiology
department specializes in the early detection of particularly serious forms of stomach, intestinal, and
colon cancer. The hospital plans to invest in a new system of digital medical imaging and image
transmission technologies that will enable its radiologists to view and evaluate intestinal scan results
from anywhere in the world.
With this investment, the hospital is attempting to overcome which of the constraints of services
marketing?
a) Inventory
b) Intangibility
c) Inconsistency
d) Inseparability - ✔✔d) Inseparability
The probability that a product will operate properly within an expected time frame is the dimension of
quality known as
a) durability
b) reliability
, c) performance
d) serviceability - ✔✔b) reliability
The organizational buying process has more steps than the consumer buying process, which can be
attributed to:
a) the limited number of suppliers in the B2B marketplace
b) the importance of integrating the responsibilities of the wholesalers or retailers
c) interpersonal and environmental influences not seen in consumer buying decisions
d) business purchasing that introduces new complexities that do not affect consumers - ✔✔d) business
purchasing that introduces new complexities that do not affect consumers
If the Federal Reserve decides to decrease the money supply, which of the following most likely will
occur?
a) An increase in private investment and consumer expenditure
b) A decrease in private investment and consumer expenditure
c) An increase in private investment and a decrease in consumer expenditure
d) A decrease in private investment and an increase in consumer expenditure - ✔✔b) A decrease in
private investment and consumer expenditure
Which of the following is an assumption of Theory Y as developed by Douglas McGregor?
a) Workers seek responsibility
End Term Exam
In an economy the unemployment rate is 10 percent and the inflation rate is 1 percent. An
appropriate fiscal policy in this phase of the business cycle would be to
a) increase government spending
b) increase income taxes
c) decrease transfer payments
d) decrease the money supply - ✔✔a) increase government spending
In ___________, provincial governments play a substantial role in trade and investment regulation
a) China
b) Norway
c) Indonesia
d) Canada - ✔✔d) Canada
Web 2.0 is best represented by which of the following phenomena?
a) Social networking sites
b) Word processing
c) Internet browsers
d) Text messaging - ✔✔a) Social networking sites
Business torts consist of:
a) interference with contractual relations.
b) disparagement.
,c) fraudulent misrepresentation
d) All of the above - ✔✔d) All of the above
Officers and directors of a corporation owe to the corporation the subordination of their self-interest to
the interest of the corporation and owe constant loyalty to the corporation. This duty is the:
a) fiduciary duty
b) business judgment duty
c) duty of indemnification
d) duty of diligence - ✔✔a) fiduciary duty
Which of the following is not part of the accounting process?
a) Recording
b) Identifying
c) Financial decision making
d) Communicating - ✔✔c) Financial decision making
In organizational decision making, managers are able to exercise the greatest degree of discretion in the
a) enforcement of internal policies
b) settlement of legal disputes
c) restructuring of outstanding loans
d) compliance with federal regulations. - ✔✔a) enforcement of internal policies
Money is the key motivator in
a) Herzberg's motivation-hygiene theory
b) Maslow's hierarchy of needs
,c) McGregor's Theory X and Theory Y
d) Taylor's scientific management - ✔✔d) Taylor's scientific management
The incomes of a group of 50 loan applicants are obtained. Which level of measurement is income?
a) Nominal
b) Ordinal
c) Interval
d) Ratio
e) None of the above - ✔✔d) Ratio
Saint Martin Hospital boasts one of the world's leading medical imaging programs. Its radiology
department specializes in the early detection of particularly serious forms of stomach, intestinal, and
colon cancer. The hospital plans to invest in a new system of digital medical imaging and image
transmission technologies that will enable its radiologists to view and evaluate intestinal scan results
from anywhere in the world.
With this investment, the hospital is attempting to overcome which of the constraints of services
marketing?
a) Inventory
b) Intangibility
c) Inconsistency
d) Inseparability - ✔✔d) Inseparability
The probability that a product will operate properly within an expected time frame is the dimension of
quality known as
a) durability
b) reliability
, c) performance
d) serviceability - ✔✔b) reliability
The organizational buying process has more steps than the consumer buying process, which can be
attributed to:
a) the limited number of suppliers in the B2B marketplace
b) the importance of integrating the responsibilities of the wholesalers or retailers
c) interpersonal and environmental influences not seen in consumer buying decisions
d) business purchasing that introduces new complexities that do not affect consumers - ✔✔d) business
purchasing that introduces new complexities that do not affect consumers
If the Federal Reserve decides to decrease the money supply, which of the following most likely will
occur?
a) An increase in private investment and consumer expenditure
b) A decrease in private investment and consumer expenditure
c) An increase in private investment and a decrease in consumer expenditure
d) A decrease in private investment and an increase in consumer expenditure - ✔✔b) A decrease in
private investment and consumer expenditure
Which of the following is an assumption of Theory Y as developed by Douglas McGregor?
a) Workers seek responsibility
