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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions:

1. If a mortgage has a 12% annual rate of interest and a $45,375 principal balance at the start of June, what will the principal balance be at the end of June after a $650 payment is made?

A) $45,178.75
B) $44,725.00
C) $45,172.25
D) $44,731.50

2. Which of the following components of a business plan primarily illustrates industry knowledge as well as any industry research findings and conclusions?

A) Market analysis
B) Organization and management
C) Executive summary
D) Service or product line

3. Which of the following statements best describes a recession?

A) Demand for goods and services rises and productivity falls.
B) Businesses expand production and unemployment rises.
C) Demand for goods and services falls and unemployment rises.
D) The amount of goods a given amount of money buys declines.

4. Stacey has just received her first paycheck. As a responsible spender, Stacey pays her housing, food, and necessary clothing expenses first. The money that remains after paying those expenses is called

A) disposable income
B) discretionary income
C) supplementary income
D) passive income

5. Establishing and maintaining high standards in how work is done and in the output of goods and services is commonly referred to as

A) total quality management
B) effective production
C) standardization
D) customer service

Solutions: