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

1. A business owner has just purchased a piece of equipment for $3,500. The terms of the purchase state that if the balance is paid in full within 30 days, the buyer will receive 1% off. If the owner pays in full two weeks after the purchase, which of the following is the amount the owner will pay?

A) $2,975
B) $3,000
C) $3,465
D) $3,150

2. Which of the following is an example of place utility?

A) Products requested by the consumer are ordered on demand.
B) Goods or services are available at a convenient location when the consumer wants to buy them.
C) Arrangements are made for the transfer of title from seller to buyer.
D) A business firm converts raw materials into finished products.

3. The Federal Reserve Bank can increase the rate of growth of the money supply primarily by

A) raising the reserve requirement
B) buying government securities on the open market
C) raising the discount rate
D) selling government securities in the open market

4. Which of the following are used to refine a search on the Internet?

A) Boolean operators
B) Default commands
C) Macros
D) Batch files

5. Which of the following best describes a balance sheet?

A) A record of a company's financial activities for parties including investors, management, and tax officials
B) A record of the cash flow in and out of a company that divides cash into operating, investing, and financing activities
C) A record of a company's profits and expenses that shows whether the company made or lost money
D) A record of a point-in-time snapshot of the assets, liabilities, and equity of a company

Solutions: