A company pays cash for a new delivery truck. In which section of the statement of cash flows does the payment appear?ETS, Major Field Test in Business test description: I. Accounting (~15%), financial accounting, statement of cash flows. Saylor Academy open textbook Financial Accounting, "The Structure of a Statement of Cash Flows".
A company reports total assets of $500,000 and total liabilities of $180,000. What is its stockholders' equity?ETS, Major Field Test in Business test description: I. Accounting (~15%), financial accounting, balance sheet. Saylor Academy open textbook Financial Accounting, "Reporting a Balance Sheet and a Statement of Cash Flows".
A firm finishes a consulting job in December and is paid in January. Under accrual accounting, when is the revenue recognized?ETS, Major Field Test in Business test description: I. Accounting (~15%), financial accounting, conceptual foundations. Internal Revenue Service, Publication 538, Accounting Periods and Methods, "Accrual Method".
A manufacturer builds its master budget. Which schedule is prepared first?ETS, Major Field Test in Business test description: I. Accounting (~15%), managerial accounting, budgeting. Saylor Academy open textbook Managerial Accounting, "The Master Budget".
Show all 80 questions (76 more)
Accounting, continued
A product sells for $50 a unit and has a variable cost of $30 a unit. Fixed costs are $120,000 a year. How many units of sales reach the break-even point?ETS, Major Field Test in Business test description: I. Accounting (~15%), managerial accounting, cost, volume and profit analysis. Saylor Academy open textbook Managerial Accounting, "Cost-Volume-Profit Analysis for Single-Product Companies".
A retailer reports sales of $900,000 and cost of goods sold of $540,000. What is its gross profit percentage?ETS, Major Field Test in Business test description: I. Accounting (~15%), financial accounting, income statement. Saylor Academy open textbook Financial Accounting, "The Construction of an Income Statement".
Equipment costs $50,000, has an expected residual value of $5,000 and a useful life of 5 years. What is the yearly straight-line depreciation?ETS, Major Field Test in Business test description: I. Accounting (~15%), financial accounting, balance sheet. Saylor Academy open textbook Financial Accounting, "Determining Historical Cost and Depreciation Expense".
In activity-based costing, what is a cost driver?ETS, Major Field Test in Business test description: I. Accounting (~15%), managerial accounting, activity-based costing. Saylor Academy open textbook Managerial Accounting, "Using Activity-Based Costing to Allocate Overhead Costs".
The standard price of a material is $5.00 a pound. A company buys 10,000 pounds at $5.20. What is the materials price variance?ETS, Major Field Test in Business test description: I. Accounting (~15%), managerial accounting, standard costing. Saylor Academy open textbook Managerial Accounting, "Direct Materials Variance Analysis".
Which body is the chief proposer of international accounting standards?ETS, Major Field Test in Business test description: I. Accounting (~15%), international accounting. Also IX. International Issues. Saylor Academy open textbook International Business, "International Accounting Standards".
Which financial statement reports a company's assets and liabilities at one particular point in time?ETS, Major Field Test in Business test description: I. Accounting (~15%), financial accounting, balance sheet. Saylor Academy open textbook Financial Accounting, "Reporting a Balance Sheet and a Statement of Cash Flows".
Which of these costs of a furniture maker is a variable cost?ETS, Major Field Test in Business test description: I. Accounting (~15%), managerial accounting, cost concepts. Saylor Academy open textbook Managerial Accounting, "Cost Behavior Patterns".
Economics 10
A city sets a legal maximum rent below the equilibrium rent. What does the demand and supply model predict?ETS, Major Field Test in Business test description: II. Economics (~13%), microeconomics, supply and demand. Saylor Academy open textbook Principles of Economics (v. 2.0), "Government Intervention in Market Prices: Price Floors and Price Ceilings".
A country's comparative advantage lies in a good that it can produce in which way?ETS, Major Field Test in Business test description: II. Economics (~13%), basic economic concepts, comparative advantage and specialization. Also IX. International Issues. Saylor Academy open textbook Principles of Economics (v. 2.0), "The Gains from Trade".
A factory's smoke harms its neighbors, and the factory does not pay for the harm. Left alone, how much of the good does the market produce?ETS, Major Field Test in Business test description: II. Economics (~13%), microeconomics, market failure and the role of government. Saylor Academy open textbook Principles of Economics (v. 2.0), "Market Failure".
A graduate turns down a $50,000 job and a $42,000 job to start a business. What is the opportunity cost of starting the business?ETS, Major Field Test in Business test description: II. Economics (~13%), basic economic concepts, scarcity and opportunity cost. Saylor Academy open textbook Principles of Economics (v. 2.0), "Defining Economics".
A store raises a price by 10% and the quantity demanded falls by 20%. What happens to total revenue?ETS, Major Field Test in Business test description: II. Economics (~13%), microeconomics, supply and demand. Saylor Academy open textbook Principles of Economics (v. 2.0), "The Price Elasticity of Demand".
An economy's output is at a point within its production possibilities curve. What does that show?ETS, Major Field Test in Business test description: II. Economics (~13%), basic economic concepts, production possibilities frontier. Saylor Academy open textbook Principles of Economics (v. 2.0), "The Production Possibilities Curve".
The dollar rises in value against other currencies. What is the usual effect on trade?ETS, Major Field Test in Business test description: II. Economics (~13%), international economics, exchange rates. Also IX. International Issues. Saylor Academy open textbook Principles of Economics (v. 2.0), "The Bond and Foreign Exchange Markets".
In one year an economy has consumption of 700, private investment of 150, government purchases of 200, exports of 100 and imports of 150, all in billions. What is its GDP?ETS, Major Field Test in Business test description: II. Economics (~13%), macroeconomics, measurement of economic performance. Saylor Academy open textbook Principles of Economics (v. 2.0), "Measuring Total Output".
Which market structure has a large number of firms, easy entry and exit, and differentiated products?ETS, Major Field Test in Business test description: II. Economics (~13%), microeconomics, product market structures. Saylor Academy open textbook Principles of Economics (v. 2.0), "Monopolistic Competition: Competition Among Many".
Which of these is a tool of monetary policy that the Federal Reserve uses?ETS, Major Field Test in Business test description: II. Economics (~13%), macroeconomics, money and the banking system, monetary policy. Saylor Academy open textbook Principles of Economics (v. 2.0), "The Federal Reserve System".
Management 12
A leader lines employees' goals up with her own by inspiring them with a vision. Another leader rewards employees for meeting set targets. Which pair of terms fits, in that order?ETS, Major Field Test in Business test description: III. Management (~15%), organizational behavior, leadership and motivation. Saylor Academy open textbook Principles of Management (v. 1.1), "Contemporary Approaches to Leadership".
A manager sets next year's objectives and decides on a course of action to reach them. Which function of management is this?ETS, Major Field Test in Business test description: III. Management (~15%), management principles, functions. Saylor Academy open textbook Principles of Management (v. 1.1), "Planning, Organizing, Leading, and Controlling".
A manufacturer has its suppliers deliver materials just as they are needed on the production line. What is the main aim of this system?ETS, Major Field Test in Business test description: III. Management (~15%), operations management, operations execution. Saylor Academy open textbook Exploring Business (v. 2.0), "Managing the Production Process in a Manufacturing Company".
In a company, nearly every decision is made at the top levels. What is this feature of its structure called?ETS, Major Field Test in Business test description: III. Management (~15%), management principles, functions (organizing). Saylor Academy open textbook Principles of Management (v. 1.1), "Organizational Structure".
In a SWOT analysis, which two elements come from inside the organization?ETS, Major Field Test in Business test description: III. Management (~15%), strategy and policy, strategic analysis. Saylor Academy open textbook Principles of Management (v. 1.1), "Developing Strategy Through Internal Analysis".
In Herzberg's two-factor theory, which of these is a hygiene factor?ETS, Major Field Test in Business test description: III. Management (~15%), organizational behavior, leadership and motivation. Saylor Academy open textbook Principles of Management (v. 1.1), "Need-Based Theories of Motivation".
In Maslow's hierarchy, which needs are the most basic?ETS, Major Field Test in Business test description: III. Management (~15%), organizational behavior, leadership and motivation. Saylor Academy open textbook Principles of Management (v. 1.1), "Need-Based Theories of Motivation".
In Tuckman's model of group development, in which stage do members start to explore their power and influence and stake out their own territory?ETS, Major Field Test in Business test description: III. Management (~15%), management principles, group/team dynamics. Saylor Academy open textbook Principles of Management (v. 1.1), "Group Dynamics".
What does total quality management (TQM) include?ETS, Major Field Test in Business test description: III. Management (~15%), operations management, total quality management. Saylor Academy open textbook Exploring Business (v. 2.0), "Producing for Quality".
Which of Hofstede's value dimensions describes how far a culture accepts differences between people in hierarchies?ETS, Major Field Test in Business test description: III. Management (~15%), international/cross cultural management. Also IX. International Issues. Saylor Academy open textbook International Business, "What Are the Key Methods Used to Describe Cultures?".
Which set lists Porter's three generic strategies?ETS, Major Field Test in Business test description: III. Management (~15%), strategy and policy, strategic analysis. Saylor Academy open textbook Principles of Management (v. 1.1), "Strategy as Trade-Offs, Discipline, and Focus".
Whose 1911 book set out the principles of scientific management?ETS, Major Field Test in Business test description: III. Management (~15%), management principles, history and theory. Saylor Academy open textbook Principles of Management (v. 1.1), "Ancient History: Management Through the 1990s".
Quantitative business analysis 9
40% of a store's customers use a loyalty card. Of those who use the card, 25% also buy online. What is the probability that a customer uses the card and buys online?ETS, Major Field Test in Business test description: IV. Quantitative Business Analysis (~11%), probability and statistics, conditional/joint probabilities. Online Statistics Education (D. M. Lane, ed.), "Basic Concepts".
A manager must choose 2 of 6 proposed projects, and the order does not matter. How many different pairs are there?ETS, Major Field Test in Business test description: IV. Quantitative Business Analysis (~11%), probability and statistics, counting rules. Online Statistics Education (D. M. Lane, ed.), "Permutations and Combinations".
A project has three paths of activities from start to finish, taking 12, 15 and 9 days. No path can be shortened. How long is the project, and which path is critical?ETS, Major Field Test in Business test description: IV. Quantitative Business Analysis (~11%), quantitative operations management techniques, project scheduling (including PERT and CPM). Saylor Academy open textbook Exploring Business (v. 2.0), "Graphical Tools: PERT and Gantt Charts".
A quality analyst rejects a null hypothesis that is in fact true. What kind of error is this?ETS, Major Field Test in Business test description: IV. Quantitative Business Analysis (~11%), probability and statistics, hypothesis testing. Online Statistics Education (D. M. Lane, ed.), "Type I and II Errors".
A regression of sales on advertising has a correlation of r = 0.8. What share of the variation in sales does the regression explain?ETS, Major Field Test in Business test description: IV. Quantitative Business Analysis (~11%), probability and statistics, correlation and regression. Online Statistics Education (D. M. Lane, ed.), "Partitioning the Sums of Squares".
Five houses sold for $180,000, $190,000, $200,000, $210,000 and $720,000. Which measure best describes the typical price?ETS, Major Field Test in Business test description: IV. Quantitative Business Analysis (~11%), probability and statistics, measures of central tendency and dispersion. Online Statistics Education (D. M. Lane, ed.), "Comparing Measures of Central Tendency".
Sales in the last three months were 10, 14 and 18 units. What does a three-month simple moving average forecast for next month?ETS, Major Field Test in Business test description: IV. Quantitative Business Analysis (~11%), probability and statistics, time-series forecasting. Wikipedia, "Moving average".
Weekly demand is normally distributed. About what share of weeks falls within one standard deviation of the mean?ETS, Major Field Test in Business test description: IV. Quantitative Business Analysis (~11%), probability and statistics, distributions (including normal and binomial). Online Statistics Education (D. M. Lane, ed.), "Introduction to Normal Distributions".
Yearly demand is 1,000 units, each order costs $20 to place, and holding one unit for a year costs $4. What is the economic order quantity?ETS, Major Field Test in Business test description: IV. Quantitative Business Analysis (~11%), quantitative operations management techniques, inventory modeling. Wikipedia, "Economic order quantity".
Information systems 8
A manager uses an interactive program to ask "what if" questions about a pricing decision. What type of information system is this?ETS, Major Field Test in Business test description: V. Information Systems (~10%), business information systems, decision support and expert systems. Saylor Academy open textbook Exploring Business (v. 2.0), "Types of Information Systems".
A supermarket's checkout system records every sale as it happens and updates the stock count. What type of information system is this?ETS, Major Field Test in Business test description: V. Information Systems (~10%), business information systems, transaction processing systems. Saylor Academy open textbook Exploring Business (v. 2.0), "Types of Information Systems".
In a relational database table, what is the job of the primary key?ETS, Major Field Test in Business test description: V. Information Systems (~10%), information technology concepts, database management systems. D. Bourgeois, Information Systems for Business and Beyond (2019), chapter 4, Data and Databases.
In the systems development life cycle, in which phase are the requirements of the new system worked out?ETS, Major Field Test in Business test description: V. Information Systems (~10%), systems development, systems investigation and analysis. D. Bourgeois, Information Systems for Business and Beyond (2019), chapter 10, Information Systems Development.
What does the Domain Name System (DNS) do?ETS, Major Field Test in Business test description: V. Information Systems (~10%), information technology concepts, network and internet technology. D. Bourgeois, Information Systems for Business and Beyond (2019), chapter 5, Networking and Communication.
What sets an enterprise resource planning (ERP) system apart from separate departmental programs?ETS, Major Field Test in Business test description: V. Information Systems (~10%), business information systems, enterprise systems (ERP). D. Bourgeois, Information Systems for Business and Beyond (2019), chapter 8, Business Processes.
Which list names the five components of an information system?ETS, Major Field Test in Business test description: V. Information Systems (~10%), information systems in business and society. D. Bourgeois, Information Systems for Business and Beyond (2019), chapter 1, What Is an Information System?.
Which three goals make up the information security triad?ETS, Major Field Test in Business test description: V. Information Systems (~10%), information systems in business and society, security, privacy and ethical issues. D. Bourgeois, Information Systems for Business and Beyond (2019), chapter 6, Information Systems Security.
Finance 10
$1,000 is invested at 10% a year, compounded yearly. What is it worth after 2 years?ETS, Major Field Test in Business test description: VI. Finance (~13%), corporate finance, time value of money. U.S. Securities and Exchange Commission, Investor.gov, "What is compound interest?".
A company has current assets of $450,000 and current liabilities of $180,000. What is its current ratio?ETS, Major Field Test in Business test description: VI. Finance (~13%), corporate finance, working capital management, financial statement analysis. Saylor Academy open textbook Managerial Accounting, "Ratio Analysis of Financial Information".
A company with no preferred stock earns net income of $60,000 on average common shareholders' equity of $400,000. What is its return on common shareholders' equity?ETS, Major Field Test in Business test description: VI. Finance (~13%), corporate finance, financial statement analysis. Saylor Academy open textbook Managerial Accounting, "Ratio Analysis of Financial Information".
A firm is financed 60% by equity that costs 12% and 40% by debt that costs 5% after tax. What is its weighted average cost of capital?ETS, Major Field Test in Business test description: VI. Finance (~13%), corporate finance, cost of capital and capital structure. Wikipedia, "Weighted average cost of capital".
A project costs $10,000 today and returns $6,000 at the end of each of the next 2 years. At a required rate of 10%, what is its net present value, and should it be accepted?ETS, Major Field Test in Business test description: VI. Finance (~13%), corporate finance, capital budgeting. Saylor Academy open textbook Managerial Accounting, "Net Present Value".
An investment pays $50 at the end of every year forever. At a discount rate of 5%, what is its present value?ETS, Major Field Test in Business test description: VI. Finance (~13%), corporate finance, time value of money. Wikipedia, "Perpetuity".
An investor spreads money across many different investments. What is the purpose?ETS, Major Field Test in Business test description: VI. Finance (~13%), investments, risk and returns. U.S. Securities and Exchange Commission, Investor.gov glossary, "Diversification".
Market interest rates rise. What happens to the market price of an existing fixed-rate bond?ETS, Major Field Test in Business test description: VI. Finance (~13%), investments, valuation of securities. U.S. Securities and Exchange Commission, Investor.gov, "Bonds".
The risk-free rate is 3%, the market risk premium is 6% and a stock's beta is 1.5. By the capital asset pricing model, what return do investors require on the stock?ETS, Major Field Test in Business test description: VI. Finance (~13%), investments, risk and returns. Wikipedia, "Capital asset pricing model".
What is the internal rate of return (IRR) of an investment?ETS, Major Field Test in Business test description: VI. Finance (~13%), corporate finance, capital budgeting. Saylor Academy open textbook Managerial Accounting, "The Internal Rate of Return".
Marketing 11
A buyer feels anxious after an expensive purchase and wonders whether the other brand was better. What is this called?ETS, Major Field Test in Business test description: VII. Marketing (~13%), consumer and organizational buyer behavior. Saylor Academy open textbook Principles of Marketing (v. 2.0), "Low-Involvement Versus High-Involvement Buying Decisions and the Consumer's Decision-Making Process".
A company decides how it wants buyers to see its product compared with competing products. What is this step called?ETS, Major Field Test in Business test description: VII. Marketing (~13%), identifying attractive markets, strategic marketing planning. Saylor Academy open textbook Principles of Marketing (v. 2.0), "Positioning and Repositioning Offerings".
A company launches a new snack at a low first price to win as much market share as it can. Which pricing strategy is this?ETS, Major Field Test in Business test description: VII. Marketing (~13%), serving selected markets, the marketing mix (price). Saylor Academy open textbook Principles of Marketing (v. 2.0), "Pricing Strategies".
A company takes its current products and sells them in other countries without changing the product. What is this strategy called?ETS, Major Field Test in Business test description: VII. Marketing (~13%), international marketing. Also IX. International Issues. Saylor Academy open textbook International Business, "Standardized or Customized Products".
A firm groups buyers by what they think about and value and by how they live. Which kind of segmentation is this?ETS, Major Field Test in Business test description: VII. Marketing (~13%), serving selected markets, segmenting consumer and organizational markets. Saylor Academy open textbook Principles of Marketing (v. 2.0), "How Markets Are Segmented".
A researcher runs her own survey for one project. Then she reads a government report written earlier for another purpose. Which kinds of data are these, in that order?ETS, Major Field Test in Business test description: VII. Marketing (~13%), identifying attractive markets, marketing research and information technology tools. Saylor Academy open textbook Principles of Marketing (v. 2.0), "Steps in the Marketing Research Process".
A soft drink maker tries to sell its product in as many outlets as possible. Which distribution strategy is this?ETS, Major Field Test in Business test description: VII. Marketing (~13%), serving selected markets, the marketing mix (place). Saylor Academy open textbook Principles of Marketing (v. 2.0), "Marketing Channel Strategies".
Demand for steel rises because consumers are buying more cars. What is this kind of business demand called?ETS, Major Field Test in Business test description: VII. Marketing (~13%), identifying attractive markets, consumer and organizational buyer behavior. Saylor Academy open textbook Principles of Marketing (v. 2.0), "The Characteristics of Business-to-Business (B2B) Markets".
In the product life cycle, at which stage do sales level off as competitors saturate the market?ETS, Major Field Test in Business test description: VII. Marketing (~13%), serving selected markets, the marketing mix (product). Saylor Academy open textbook Principles of Marketing (v. 2.0), "Managing New Products: The Product Life Cycle".
What makes a service different from a tangible good in a company's offering?ETS, Major Field Test in Business test description: VII. Marketing (~13%), serving selected markets, marketing services. Saylor Academy open textbook Principles of Marketing (v. 2.0), "What Composes an Offering?".
Which list gives the four parts of marketing as the American Marketing Association's definition names them?ETS, Major Field Test in Business test description: VII. Marketing (~13%), serving selected markets, the marketing mix. Saylor Academy open textbook Principles of Marketing (v. 2.0), "Defining Marketing".
Legal and social environment 8
A company wants to protect the brand name and logo that identify its goods. Which kind of intellectual property protection fits?ETS, Major Field Test in Business test description: VIII. Legal and Social Environment (~10%), business relationships, intellectual property. U.S. Patent and Trademark Office, "Trademark, patent, or copyright".
A customer sues a store for negligence after slipping on a wet floor. Which set of elements must the customer prove?ETS, Major Field Test in Business test description: VIII. Legal and Social Environment (~10%), legal environment, tort law. Cornell Law School, Legal Information Institute, Wex, "negligence".
A delivery driver causes an accident while making deliveries for her employer. Under respondeat superior, who can be held liable?ETS, Major Field Test in Business test description: VIII. Legal and Social Environment (~10%), business relationships, law of agency. Cornell Law School, Legal Information Institute, Wex, "respondeat superior".
Competing firms secretly agree to charge the same price. Which area of law does this violate?ETS, Major Field Test in Business test description: VIII. Legal and Social Environment (~10%), regulatory environment, antitrust law. Cornell Law School, Legal Information Institute, Wex, "price-fixing".
Title VII of the Civil Rights Act of 1964 forbids job discrimination on which grounds?ETS, Major Field Test in Business test description: VIII. Legal and Social Environment (~10%), regulatory environment, employment law. U.S. Equal Employment Opportunity Commission, "Title VII of the Civil Rights Act of 1964".
What is a contract?ETS, Major Field Test in Business test description: VIII. Legal and Social Environment (~10%), business relationships, contract and sales law (UCC). Cornell Law School, Legal Information Institute, Wex, "contract".
Which form of business leaves the owner personally liable for all the debts of the business?ETS, Major Field Test in Business test description: VIII. Legal and Social Environment (~10%), business relationships, business organizations. U.S. Small Business Administration, "Choose a business structure".
Which set of laws, adopted in some form by every state, governs commercial transactions such as the sale and lease of goods?ETS, Major Field Test in Business test description: VIII. Legal and Social Environment (~10%), business relationships, contract and sales law (UCC). Cornell Law School, Legal Information Institute, Wex, "Uniform Commercial Code".
How this list was compiled: Our own questions, written to the test description ETS publishes for the Major Field Test in Business (https://www.ets.org/content/dam/ets-org/pdfs/mft/bachelors-deg-bus-test-description.pdf, read 2026-10-09): Accounting about 15%, Economics about 13%, Management about 15%, Quantitative Business Analysis about 11%, Information Systems about 10%, Finance about 13%, Marketing about 13%, Legal and Social Environment about 10%, with International Issues overlapping and drawn from the other areas. The bank holds 12, 10, 12, 9, 8, 10, 11 and 8 questions; five of them also count as international issues. Each fact was read on 2026-10-09 in the public page named under its question: Saylor Academy's open textbooks (Financial Accounting, Managerial Accounting, Principles of Economics, Principles of Management, Principles of Marketing, Exploring Business, International Business), Information Systems for Business and Beyond (2019) by David Bourgeois, Online Statistics Education (D. M. Lane, ed.), Cornell's Wex legal encyclopedia, pages of the SEC, the SBA, the EEOC and the USPTO, and Wikipedia. Answers that are arithmetic were worked out a second time. Licence: Questions, choices and explanations are original work of this site.
How it works
This free ETS Major Field Test business practice has 80 questions of our own, spread over the eight content areas of the bachelor's degree test. It is unofficial and is not affiliated with, endorsed by or sponsored by ETS.
Read the full guide
Eight areas, international issues inside
ETS's test description, read October 9, 2026: accounting about 15%, economics 13%, management 15%, quantitative business analysis 11%, information systems 10%, finance 13%, marketing 13%, legal and social environment 10%. This bank holds 12, 10, 12, 9, 8, 10, 11 and 8 questions.
Half length, real pace
The real test has 120 multiple-choice items in two hours. Exam mode draws 60 of ours in 60 minutes.
Which test this is
This page follows the bachelor's degree test. ETS has separate Major Field Tests for the associate business degree and for the MBA.
ETS says the math on the real test needs no calculator. Work these by hand too.
Some real items are based on case studies, so practice reading a short business situation before you look at the choices.
International questions are not a separate section. Expect exchange rates, trade and culture inside the other areas.
Questions and answers
What is on the Major Field Test in Business?
120 multiple-choice items, some based on case studies, on accounting, economics, management, quantitative business analysis, information systems, finance, marketing, and the legal and social environment. About nine of them are on international issues.
How long is the Major Field Test in Business?
Two hours. The program picks the time and place and may split the test into two sessions, and a proctor must give it.
Is this ETS Major Field Test business practice exam official?
No. It is unofficial practice: all 80 questions were written for this page from ETS's published content outline, each naming the public source of its fact. Nothing is taken or reworded from the real test or from ETS's sample questions.
How is the Major Field Test in Business scored?
ETS reports a total score for each student. Assessment indicators for the eight areas and for international issues are reported for the group only, and only when at least five students test. The test description gives no pass mark.