A study was conducted to determine the effectiveness of audiotape cassette technology in delivering professional, graduate-level distance education programs to adult audiences, and to compare this method with traditional classroom instruction. Specific elements of student-teacher rapport, pacing, and attitudes towards the audiotaped course were also analyzed. On the basis of a survey of corporate managers, an MBA course, "Management Philosophy and Style," was selected to be audiotaped and used for the study. Participants included campus students enrolled in the course (with an average attendance of 18) and 15 corporate manager volunteers who received the audiotaped instruction. Preliminary information based on a comparison of the two groups' midterm examinations indicates that distance learners generally achieved higher scores on the examinations than the on-campus graduate students, and that learners reacted positively to the audiotapes, suggesting that there is a potential market for courses of this type, particularly if they are offered for credit. It is noted that this delivery system limits course offering to classes that are not highly interactive--for use in a degree system, a combination of campus and distance learning experiences would be necessary; and that the low cost of production and distribution of this delivery system make it capable of a high degree of profitability. It is suggested that audiotaped courses provide a much-needed option not presently open to most adult learners. Final study outcomes will be available in the summer of 1986. (JB)