MFT MBA EXAM 2025 QUESTIONS AND
ANSWERS
Which of the following organizations is more likely to use project financing?
A. a small start up
B. a financial services firm w an extensive client list
C. a large consumer goods company
D. a large public utility involved in infrastructure development - ANS D.
After an extensive recruitment process to select well-qualified individuals, a large percent of a
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 w those of the rest of the
industry
C. the starting salary for the new hires was not competitive w that of the rest of the industry
D. the new hires lacked the basic skills required to learn the job. - ANS A
Prosco 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 cost of $2. If
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, Prosco sells the defective units to the firm for $5 each, how would Prosco's reported income be
affected?
A. It would decrease by $4.5 per unit sold
B. It would decrease by $1.50 per unit sold
C. It would increase by $3 per unit sold
D. It would increase by $5 per unit sold - ANS C
Some companies have little, if any, net income or earnings, yet they seem to have all the money
they need for capital expenditures and the like. 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 w many different banks
D. They issue warrants to their officers - ANS A
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 quarters dividend was $1 per share. The
announcement indicated 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 company 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 - ANS B
Wave is a telecommunications company that wants to become involved in e-commerce. It has
2
to decide whether to develop a business-to-business or business-to-consumer strategy. As
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ANSWERS
Which of the following organizations is more likely to use project financing?
A. a small start up
B. a financial services firm w an extensive client list
C. a large consumer goods company
D. a large public utility involved in infrastructure development - ANS D.
After an extensive recruitment process to select well-qualified individuals, a large percent of a
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 w those of the rest of the
industry
C. the starting salary for the new hires was not competitive w that of the rest of the industry
D. the new hires lacked the basic skills required to learn the job. - ANS A
Prosco 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 cost of $2. If
1
Page
@COPYRIGHT BRAINBARTER 2025/2026
, Prosco sells the defective units to the firm for $5 each, how would Prosco's reported income be
affected?
A. It would decrease by $4.5 per unit sold
B. It would decrease by $1.50 per unit sold
C. It would increase by $3 per unit sold
D. It would increase by $5 per unit sold - ANS C
Some companies have little, if any, net income or earnings, yet they seem to have all the money
they need for capital expenditures and the like. 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 w many different banks
D. They issue warrants to their officers - ANS A
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 quarters dividend was $1 per share. The
announcement indicated 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 company 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 - ANS B
Wave is a telecommunications company that wants to become involved in e-commerce. It has
2
to decide whether to develop a business-to-business or business-to-consumer strategy. As
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@COPYRIGHT BRAINBARTER 2025/2026
