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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. There arerunny factors of production thatcontribute to the output of a final product. Place thedescriptions below into the appropriate categories.

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

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

4. Which of the following statements most accurately describes the partnership form of a business organization?

A) Each partner is fully liable for all debts incurred by the partnership.
B) Owners do not have control of daily decisions unless they are officers of the partnership.
C) A partnership is more difficult and expensive to start up than a corporation.
D) Owners' liability is limited to the amount of their investment in the partnership.

5. Which of the following steps in new product development should occur first?

A) Commercialization
B) Business analysis
C) Idea generation
D) Idea evaluation

Solutions: