ETS Study Guide
Which of the following cloud computing models allowed for businesses to run applications on a pay-per-use agreement? A. Platform as a service (PaaS) B. Software as a service (SaaS) C. Infrastructure as a service (IaaS) D. Enterprise resource planning (ERP)
A
Which of the following information technology tools for database management allows for speedy queries based on accurate columns of data organized based on process inputs? A. Indexing B. SQL C. Normalization D. Proxy Server
A
Which of the following is an example of consumer-generated marketing? A. BMW's use of brand-related videos posted on video-sharing websites by its customers B. Nike's Nike Plus website which helps its customers to customize their shoes C. Toyota's Facebook page, which provides information about its upcoming cars to its customers D. Neiman Marcus's InCircle Rewards program for its best customers
A
Which of the following is true about perfect competition? A. marginal costs approach or reach output price. B. few strong competitors hold the majority of market share. C. barriers to entry are high in this market structure. D. a singular firm controls the industry prices.
A
Which of the following approaches to moral decisions focuses on outcomes and consequences rather than inputs and antecedents: A. Justice Approach B. Common-Good Approach C. Rights Approach D. Utilitarian Approach
D
Which of the following are not a part of the three main managerial roles as researched by: A. Informational B. Interpersonal C. Decisional D. Interdepartmental
D
Which of the following challenges in service marketing is illustrated when a lawyer's services are unique to the particular client and their legal situation, such that the exact same services would be irrelevant, most likely, to the next client: A. Inventory B. Intangibility C. Inconsistency D. Inseparability
D
Which of the following is an example of cause-related marketing? A. a firm selling groceries without using retail outlets B. a firm selling energy drinks and relying on social media C. firm selling low-cost health insurance through online sites D. a firm selling electronics and giving a percentage of sales to charity
D
Which of the following is not true regarding increasing inflation? A. Employment costs go up B. Inventory levels go down in the short term C. Unemployment goes down D. Unemployment goes up
D
Which of the following is true about oligopolies? A. There are many competitors, so collusion is not possible. B. They can earn normal profits because of low barriers to entry. C. They can focus exclusively on non-price competition. D. They do competitive analyses to respond to rival efforts.
D
Which of the following systems allows for multiple independent firms along a supply chain to share information without human interaction? A. Management Information System B. Transaction Processing System C. Decision Support System D. Enterprise Resource Planning
D
Which system would be used to coordinate a local area network or company intranet? A. Supercomputer B. Mainframe C. Local Area Network D. Network Server
D
A decrease in the exchange from dollars to Euros would allow a European firm to: A. decrease its price in the US and become more price-competitive B. increase its price in the US and become less price-competitive C. keep the price the same and become less price-competitive D. decrease its price in the US and become less price-competitive
A
A school has 4 business majors: accounting, finance, marketing, and management. In its business school there are 200 students: half American, half international, and they are distributed perfectly among the majors. 25 American Accounting majors, 25 International Accounting majors, 25 American finance majors, 25 international finance majors, etc. If an international student is randomly selected, what is the probability that he or she is a marketing major? A. 25/100 B. 25/200 C. 50/100 D. 25/150
A
A time-series forecast of unemployment data for May: A. would rely on past unemployment data B. would rely on current values of other related variables, such as GDP and the trade balance C. should ignore the correlation among error terms D. should only include data from the month of May for the past ten years
A
An emergent tactic in marketing to help identify customers based on where they live and their customer profile (many times through loyalty program purchases) allows companies to target ads and promotions to its "best customers". Which of the following approaches does this align with? A. Geodemographic profiling B. Psychographic profiling C. Demographic profiling D. Lifestyle profiling
A
At Toyota, its Lexus designers attempt to make improvements to the car's design each year, even if those changes are minor ones. This process is an example of: A. continuous improvement. B. concept testing. C. empowerment. D. market testing.
A
Based on TQM (total quality management), the idea of quality is most aligned with: A. Quality should be integrated into the product or service offering B. Quality is the result of a novel design process C. Quality is only relevant in firms who differentiate and do not seek low cost strategies D. Quality requires the alignment of multiple firms across the supply chain
A
Cache memory: A. Allows readily accessed information to be displayed faster than sourcing it from a unique source. B. Is stored in the cloud. C. Determines how fast your network will connect to the internet. D. Allows a number of users to access network information across a wide geographic region.
A
During the environmental scanning process that an organization goes through to decide on operations, scope, and target market, which might the following be classified? There is a trend within the millennial generations to prioritize physical fitness in their daily routine... A. Social Environment B. Competitive Environment C. Legal Environment D. Technological Environment
A
If an employee makes money in Nation A but then sends that money abroad for use in Nation B, what will happen? A. Negative balance of payment implication for Nation A, and a debit (-) to the current account B. Negative balance of payment implication for Nation A, and a credit (+) to the current account C. Positive balance of payment implication for Nation A, and a debit (-) to the current account D. Positive balance of payment implication for Nation A, and a credit (+) to the current account
A
Imagine that price levels in the US decrease relatively to the rest of the globe. What do you expect would happen in terms of demand for and the global value of the USD on the foreign market? A. Demand for the USD would go up, and as such, the value of the USD will appreciate B. Demand for the USD will go down, and as such, the value of the USD will depreciate C. Demand for the USD will go up, and as such, the value of the USD will depreciate D. Demand for the USD will go down, and as such, the value of the USD will appreciate
A
In a promotion mix, _______ involves personally connecting with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. A. direct marketing B. advertising C. public relations D. predictive analytics
A
The Sarbanes-Oxley Act requires is designed to protect the public from deceptive accounting practices and other fraudulent practices. An internal control report must be included in every company's annual report. Which one of the following is NOT one of the requirements of the internal control report? A. Contain an assessment by management of the internal control structure including records storage and the length of time required B. State the responsibility of management to maintain an adequate control structure C. Describe in detail the internal controls of the company D. Contain an independent assessment by an independent auditor of the reliability of internal controls
A
The challenge in service marketing of perishable means that: A. Services cannot be used after a certain timeframe. B. Services cannot be separated from their providers. C. Services must be delivered on a timely basis. D. Services can vary depending on the person administering the service.
A
The following Five Number Summary values relate to the distribution of hours worked by union pipefitters in the last week: X smallest = 30 X largest = 40 Q1 = 32 Q3 = 38 mean = 35 Based on the summary values, the distribution of hours worked is: A. symmetrical B. skewed left C. skewed right D. binomial
A
The following interactive data format is used heavily by marketing managers to help mold web content and design web page and mobile displays. A. Hypertext Markup Language (HTML) B. Extensible Business Reporting Language (XBRL) C. Active Server Pages (ASP) D. Cascading Style Sheets (CSS)
A
The two major motivational theories are content and process-based. Content motivational theories deal with... A. Needs and satisfaction B. Needs and internal factors C. Needs and external factors D. Needs and organizational strategy
A
When a firm takes time to plan a multi-step process for taking applications, interviewing candidates, and performing background checks, the firm is said to be exhibiting which type of organizational control? A. Feedforward B. Feedback C. Strategic D. Concurrent
A
When will a competitive strategy based off premium pricing or price skimming is likely to be used? A. When products in the industry are highly differentiated B. When buyers have power to negotiate the price C. When there are high switching costs D. When price competition is vigorous
A
Which of the following is true regarding data mining and data warehousing? A. Data mining refers to the process of retrieving data to show patterns; data warehousing centralizes the process for storing data. B. A data mine refers to where company information is stored; a data warehouse is the physical location of the store. C. Data mining is never used by small companies; data warehousing is used by most all companies. D. Data mining requires full implementation of an ERP system.
A
Which of the following statements regarding Corporate Social Responsibility is true? A. CSR refers to the idea that businesspeople should consider the social consequences of economic actions when making business decisions. B. Proactive CSR strategies deal with the legal requirements necessary to operate within a given geographic jurisdiction. C. Reactive CSR strategies consider the triple bottom line in critical decisions made by a firm's board of directors when launching new capital programs. D. CSR and sustainability are synonymous concepts dealing with business ethics
A
A data service provides information to its subscribers to enable them to evaluate the performance of socially responsible mutual funds. A recent sample of 60 funds yielded a mean of $12.10 in dividends per share over the past five years, and a standard deviation of $3.00. If dividends is a normally distributed variable: A. The median value of dividends is less than $12.10 B. A range of one standard deviation in both directions accounts for 68% of the dividends C. The mode value of dividends is equal to the standard deviation D. The variance is double the size of the standard deviation
B
A vat of golf balls contains 3,000 balls, 100 of which are yellow and the rest are white. What is the probability that you'll select 2 yellow balls on back to back random draws? A. About 1% B. Less than 1% C. 2/3,000 D. 2%
B
A(n) ________ occurs when two parties agree to exchange currency and execute the deal at some specific date in the future. A. arbitrage B. forward exchange C. spot exchange D. currency swap
B
Assume that there is a plot of distributions of 200 observations and they are symmetrical. Three new observations are added to the plot and each of them are over 2 standard deviations above the mean. What will happen on the new distribution plot? A. it will be skewed to the left B. it will be skewed to the right C. the mean value will decrease D. the mean value will remain constant
B
Facebook bought Instagram in 2012. Both companies competed in the same industry but appealed to a different consumer base, thus increasing market share for the parent firm. This is a great example of what? A. Vertical Integration B. Horizontal Integration C. Parallel Integration D. Monopolistic Integration
B
If the US were to lower tax rates across the board for citizens who make less than $100,000 annually, which type of policy would be involved? A. Monetary B. Fiscal C. Executive D. Central Banking
B
Information collected from online databases on the Internet is an example of ________ data. A. primary B. secondary C. first-hand D. experimental
B
International growth by mergers and acquisitions have been shown by research to positively impact which of the following groups due to a lack of start-up resources: A. Domestic firms in low-income urban areas B. Nations considered emerging markets C. The most developed nations D. Nations going through political transition
B
Nike clothing has an elasticity factor of 1.3. Because of this factor, when the price for these clothes increases, demand: A. stays the same B. goes down C. goes up D. will shift to the right
B
Proprietary information which is accessed by users independently and where each interaction will impact any future transactions is best managed by which of the following processing systems? A. real-time processing B. distributed processing C. batch processing D. wireless processing
B
Students at a university buy books for a semester at the following rates: 10% of students spend $200 on books, 25% of students spend $300 on books, 30% of students spend $350 on books, 10% of students spend $400 on books. What is the expected value of students buying books at this school? A. $300 B. $302.50 C. $275.50 D. $325
B
The goal of this system is to provide managers the information that they need to evaluate actual performance for a given time period (such as allowing for the ability to query sales data from a particular period). It managers all of a firm's internal data processing. A. Enterprise Resource Planning B. Management Information System C. Decision Support System D. Transactional Processing System
B
When a customer purchases an item using a heuristic such as "I bought this last time" or "price equals quality", they are deploying minimal purchasing effort. Which of the following items would the customer most likely be buying in this instance? A. Heterogeneous Shopping Product B. Convenience Product C. Specialty Product D. Unsought Product
B
When a firm reports its financial statements under IFRS (International Financial Reporting Standards), which inventory costing alternative will not be used? A. FIFO B. LIFO C. Weighted Average D. Specific identification
B
When can a bank grant a loan? A. When checkable deposits fall below the reserve requirement B. When checkable deposits are above the reserve requirement C. When they are approved by a central bank D. When they have filed their quarterly tax return
B
When it comes to the systems development life cycle, which of the following steps comes first in the process? A. Testing and Maintaining the System B. Designing the System C. Implementing the System D. Developing Software for the System
B
Which of the following activities have been associated with high performing teams? A. Allocating financial resources B. Sharing responsibility C. Having a strong leader D. Aligning group norms
B
Which of the following best exemplifies foreign direct investment (FDI)? A. Pure Pearls, a jewelry store in the United States, imports harvested pearls from Indonesia, the Philippines, and Australia. B. Chivalry, a U.S.-based phone manufacturing company, has set up its own assembly plant in Japan to cater to the needs of the Asian market. C. Delicate Love, a reputable florist company in Holland, exports tulips and roses throughout the globe. D. Samantha started an Italian restaurant in her home country, the United States, after she took cooking lessons from a well-known chef in Italy.
B
Which of the following financial statements reports the excess of a company's revenues over its expenses? A. Balance sheet B. Income statement C. Statement of retained earnings D. Statement of cash flows
B
Which of the following is a software engineering tool that is used to standardize the design of a system? A. Entity-Relationship Diagram B. Unified Modeling Language C. Structured Query Language D. Visual Basic
B
Which of the following is utilized on a personal computer for accessing short-term information based on the user's history and most utilized program and app processing? A. HDMI B. RAM C. PnP D. BIOS
B
Which of the following systems is based on open source software: A. Quickbooks B. Wikipedia C. Adobe Acrobat D. eBay
B
Which of the following types of leadership engenders trust, seeks to develop leadership in others, exhibits self-sacrifice, and serves as a moral agent? A. Trait leadership B. Servant leadership C. Contingency leadership D. Path-goal leadership
B
Which of the following would measure the effectiveness of a strategic decision? A. The achievement of consensus by stakeholders B. The extent to which objectives are achieved C. The assimilation of the decision to key employees D. The acceptance of the decision by members of the community
B
Which type of market structure involves having just one buyer that controls the market as the primary purchaser, and thus, can dictate wages? A. Monopoly B. Monopsony C. Oligopoly D. Oligopsony
B
_______ pricing is an approach that sells products and services for less than cost in order to make competing firms go out of business. Many governments have placed "anti-dumping" laws in place to prohibit such action by major multinationals who can afford to take losses until its competition goes bankrupt or out of business. A. breakeven B. predatory C. margin maximization D. market skimming
B
A __________ is designed to hold a modest amount of data specific to a particular client and website, and can be accessed either by the web server or the client computer. A. Adware B. Firewall C. Cookie D. Proxy server
C
An HR department has a very explicit and clear policy with regard to how to handle furloughing employees if it becomes necessary. The policy considers years of service and very measurable outputs so as to not show anyone preferential treatment or allow for much subjectivity. What type of approach is being used here? A. The Common Good Approach B. Utilitarian Approach C. Justice Approach D. Nepotism Approach
C
How can a researcher make his or her own estimate unbiased? A. Get responses from the entire population B. Subtract 1 from the sample (n-1) because you have lost a degree of freedom C. Both a and b are correct D. none of the above are correct
C
If an exempt employee works 50 hours in a particular workweek and her base salary is $550 per week, what would her gross pay be for that week? A. $450 B. $500 C. $550 D. $750
C
If the nominal interest rate is 4% and the real interest rate is 2.5%, what is the anticipated rate of inflation? A. 2.5% B. 6.5% C. 1.5% D. 4%
C
In which of the following scenarios is the firm earning negative economic profits? A. Average cost of production is less than average revenue B. Average cost of production is lower than the price of the products for sale C. Total cost of production is higher than total revenues D. Marginal cost of production is equal to the price of its products
C
Indy Unique Inc. makes car parts for engine manufacturers. In the US, the company sells to body shops that repair everyday sedans and SUVs experiencing problems. In Europe, Indy Unique sells to new car manufacturers who are assembling new vehicles off the line. What type of segmentation approaches is Indy Unique Inc. taking in this scenario? A. Demographic and Situational B. Behavioral and Demographic C. Geographic and Behavioral D. Demographic and Geographic
C
Janet believes that the cultural group she belongs to is superior and is hence highly intolerant toward employees from the cultures of other countries. This behavior of Janet is known as: A. cultural convergence B. Confucian dynamism C. ethnocentrism D. ethnic gloss
C
Mary had always aspired to be the owner of her own bakery. When she turned 30, she finally pulled the trigger and established "Mary's Fresh", a small bakery in a suburban town. As her business grew in size over the first 3 years, she became unable to handle the orders that would come in and would never really trust the people that she hired to take initiative. Ultimately, she needed to scale back and remain small. Which of the following common entrepreneurial downfalls did Mary experience? A. Delay in training a successor B. Failure to monitor financial performance C. Failure to delegate authority D. Underestimating the demands of consumers
C
Patagonia states that it will build the best products, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis. This statement is most likely a: A. Business Objective B. Value Statement C. Mission Statement D. Business Plan
C
Reducing defects and variability in manufacturing is the name of the game for this data-driven process that companies seek to gain certification... A. Economic Order Quantity B. PERT/CPM C. Six Sigma D. Just In Time Manufacturing
C
The following information is available for Velvet Company for its most recent year: COGS - $4,320,000 Ending Inventory - $560,000 The gross margin is 40 percent of net sales. What is the amount of sales required to generate this gross margin percentage based upon the above information? A. $6,000,000 B. $6,800,000 C. $7,200,000 D. $7,900,000
C
The government raises interest rates significantly. What will be the short-term outcome? A. Businesses will make more capital investments. B. Individuals will buy more non-governmental securities. C. Businesses will make fewer capital investments. D. Individuals will buy more foreign bonds.
C
What might cause a negative change in demand for bananas? A. A sudden increase in birth rate B. An increase in the price of apples, a substitute product C. A buzz-worthy news report illustrating the amount of calories in a banana D. A increase in the price of apples, a substitute product
C
What would decrease a firm's break-even point? A. increase in fixed costs B. increase in variable cost per unit C. increase in selling price D. increase in income tax expense
C
When it comes to hypothesis testing, which of the following is false: A. the null hypothesis is assumed to be true B. the standard error of the mean decreases as the sample size increases C. the level of significance specifies the minimum Type 1 error D. 2 standard deviations above and below the mean will give you a 95% confidence interval
C
When it comes to hypothesis testing, which of the following is true: A. the alternative hypothesis is assumed to be true B. the standard deviation of the mean gets larger as the sample size gets larger C. the standard deviation of the mean gets smaller as the sample size gets larger D. Type 2 Error can be eliminated if the sample size is large enough
C
Which of the following cloud computing models allowed for businesses to utilize mainframe hardware and servers on a pay-per-use agreement? A. Platform as a service (PaaS) B. Software as a service (SaaS) C. Infrastructure as a service (IaaS) D. Enterprise resource planning (ERP)
C
Which of the following is an example of upward communication? A. A manual with a listing of company policy B. A memo exchanged between two C-level employees C. A suggestion box in the break room D. An interactive pitch to a potential new client
C
Which of the following is true of advertising in the new marketing communications model? A. Advertisers are trying to boost print media advertising to counter the rise of digital media. B. Advertisers are spending more money on mass-media marketing techniques like network television. C. Advertisers are using highly targeted media to reach smaller customer segments with personalized, interactive messages. D. Advertisers are using more broadcasting techniques to reach target customers.
C
Which of the following managerial discoveries led to the thinking that quality of working conditions and social aspects produce higher quality output and reflects quality supervision? A. Six Sigma B. Total Quality Management C. The Hawthorne Experiments D. Just in Time Manufacturers
C
Which of the following statements about heterogeneous and homogeneous groups are true: A. Homogeneous groups work better than heterogeneous groups. B. Homogeneous groups take longer to build cohesiveness. C. Heterogeneous groups can function better than homogeneous groups, but take longer to build cohesiveness. D. Homogeneous groups can function better than heterogeneous groups, but take longer to build cohesiveness.
C
You and your friends are flipping a coin 10 times. Assuming there is a head and a tail on the coin and it is fairly weighted, how many times will it land on two tails? A. 10!*2! B. 20!/(10-2)! C. 10!/(2!(10-2)!) D. 10!/2!
C
__________ segmentation is an approach that goes in depth in identifying factors that contribute to a consumer's purchasing behavior. There are many variables considered in this approach in an attempt to create profiles for effective marketing. A. Geographic B. Lifestyle C. Psychographic D. Behavioral
C
What governmental entity has the authority to reduce reserve requirements in order to increase money supply in a nation? A. Financial Lobbyists B. International Monetary Fund C. World Bank D. Central Bank
D
A Fortune 500 company issues a memo to its top-level managers to remind them that when approaching big decisions in the firm, that employees, the environment, clients, and relevant other groups be considered in addition to investors. Which is being emphasized here? A. The Golden Rule B. The Leader Member Exchange Theory C. Procedural Justice D. Stakeholder Approach
D
Ads that are sent to personal devices based on location and data searches... A. Are less likely to affect social influences in consumer behavior than TV ads. B. Are an impersonal way to create a relationship with a consumer. C. Are better suited for mass marketing as opposed to micromarketing. D. Are attempting to engage consumers at a critical point in the procurement process.
D
All of the following would increase a nation's money supply except: A. printing more money B. reducing the required reserve ratio C. increasing governmental spending D. increasing taxes across the nation
D
Because automobile computer chips are hard to come by due to the global pandemic coupled with supply chain issues, what is likely to occur in the short run in the automotive industry? A. Supply increases, causing prices to rise B. Supply increases, causing prices to fall C. Demand decreases, causing prices to rise D. Demand increases, causing prices to rise
D
Data is useful for understanding individual sales, but to gain deeper insight into a business data needs to be turned into information. Which of the following offers an example of turning data into information? A. Who are my best customers? B. What is my best-selling product? C. What is my worst-selling product? D. All of the above
D
Data storage for Proctor and Gamble's 65 individual brands is housed at its Cincinnati, OH headquarters. Within this system, sale histories and transaction-specific data can be queried and reported on. What type of hardware is P&G most likely using for this function of IT? A. Personal Computer B. Supercomputer C. Network Server D. Mainframe
D
If a researcher is considering using a dummy variable, what type of statistical analysis is likely being performed? A. joint probabilities B. structural equation modeling C. sampling and estimation D. regression
D
In a firm that promotes 3 of each incoming cohort of 10 staff accountants to managers, what is the total number of combinations of promoted staff accountants? A. 3!/10! B. 3! C. 10!/3! D. 10!/3!7!
D
Isolating other variables, what should happen to the value of the USD if interest rates increase relative to interest rates in Japan? A. The USD should remain largely unchanged relative to the Japanese yen. B. The USD would depreciate relative to the Japanese yen. C. The USD would negatively spike relative to the Japanese yen. D. The USD would appreciate relative to the Japanese yen.
D
Kerry's Kookies requires its sales personnel to keep track of their weekly contracts with customers. A sample of 25 reports showed a mean of 10 customer contacts per week, and a sample standard deviation of 2.5 contacts. Assuming customer contacts is a normally distributed variable, which of the following is the correct interpretation of a 95% confidence interval estimate of the true mean number of customer contacts per week at Kerry's Kookies? A. 95% of the sales personnel make fewer than 10 contact per week B. 95% of similarly constructed intervals would contain the true mean number of contacts per week C. The population mean must be between 9 and 10 contacts D. 95% of the sales personnel make between 5 and 15 contacts per week
D
Let X be the number of insourced units and Y be the number of outsourced units. If it costs 50 per insource item and 100 per outsourced item, what is the objective cost function? A. MAX 50X + 100Y B. MIN 100X + 50Y C. MAX 50X + 100Y D. MIN 50X + 100Y
D
Nicole sells window treatments and bedding for Macy's. She spent much time during the week working from home and traveling around to appointments to meet customers in their homes regarding decorating. While traveling to a client one day, she is in a fender bender and requires some time off to recover from some minor injuries. Which of the following will she apply for? A. Sick Day Pay B. Health Insurance C. Short-Term Disability D. Worker's Compensation
D
Relational databases: A. create a tree-based system of organization and are limited if a process gets too complex. B. analyzes data and presents it so that users can make build forecasting models. C. integrates core business processes and password protects all firm files. D. allow for complex analysis by storing information in logically connected two-dimension tables.
D
The equilibrium price of a guidebook is $35 in the perfectly competitive guidebook industry. Our firm produces 10,000 guidebooks for an average total cost of $38, marginal cost of $30, and average variable cost of $8. Our firm should: A. raise the price of the guidebooks, because the firm is losing money B. keep output the same, because the firm is producing at minimum average variable cost C. produce more guidebooks, because the next one produced increases profit by $5 D. shut down, because the firm is losing money and cannot compete in this industry
D
The first step in the marking process is ________. A. capturing value from customers to create profits and customer equity B. constructing an integrated marketing program that delivers superior value C. building profitable relationships and creating customer delight D. understanding the marketplace and customer needs and wants
D
This approach to development involves risk assessments so that programmers complete due diligence with regard to defects or vulnerabilities within a system design. A. waterfall method B. distributed processing C. SCRUM D. Spiral methodology
D
This language is used to update, manipulate, and modify data in a relational database system: A. HTML (Hypertext Markup Language) B. XBRL (eXtensible Business Reporting Language) C. UML (Unified Modeling Language) D. SQL (Structured Query Language)
D
