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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions (Q103-Q108):

NEW QUESTION # 103
As a consequence of bankruptcies resulting from fraudulent accounting practices and lack of ethical behavior by corporate officials, the United States Congress passed legislation in 2002 in an attempt to increase the accountability of corporate executives. Which of the following laws did Congress pass for this purpose?

A. Robinson-Patman Act
B. Provide Appropriate Tools Required to Intercept and Obstruct Terrorism (PATRIOT) Act
C. Consumer Credit Protection Act
D. Sarbanes-Oxley Act

Answer: D

Explanation:
The Sarbanes-Oxley Act (SOX) of 2002 was enacted to enhance corporate accountability and prevent fraudulent accounting practices following scandals like Enron. It imposes stricter financial reporting and auditing requirements. Option B (PATRIOT Act) addresses terrorism, not corporate governance. Option C (Robinson-Patman Act) prevents price discrimination. Option D (Consumer Credit Protection Act) protects credit consumers, not corporate accountability. This question aligns with the Business Law category, emphasizing corporate ethics.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Business Law; Business Law: Text and Cases, Chapter 41.

NEW QUESTION # 104
Which of the following best describes a balance sheet?

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

Answer: C

Explanation:
A balance sheet provides a snapshot of a company's financial position at a specific point in time, detailing its assets, liabilities, and equity. Option A describes financial reporting broadly, not specifically the balance sheet. Option B describes the income statement. Option C refers to the statement of cash flows. This question aligns with the Accounting and Finance category, emphasizing financial statements.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Accounting and Finance; Financial Accounting, Chapter 2.

NEW QUESTION # 105
Of the following, the factor generally considered to be the most important in determining the success of a typical convenience store is

A. analysis of distribution
B. promotional programs
C. pricing analysis
D. store site

Answer: D

Explanation:
The store site is the most critical factor for a convenience store's success, as location drives customer traffic and accessibility. Option A (promotional programs) is secondary to location. Option C (distribution analysis) and Option D (pricing analysis) are important but less critical than site selection. This question aligns with the Management and Marketing category, emphasizing retail strategy.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Management and Marketing; Retailing Management, Chapter 7.

NEW QUESTION # 106
If $500 were placed in a savings account that pays 2.5% simple interest each year, how much interest would be earned in five years?

A. $625
B. $62.50
C. $12.50
D. $6,250

Answer: B

Explanation:
Simple interest is calculated as I = P × R × T, where P = principal ($500), R = annual interest rate (2.5% =
0.025), and T = time (5 years). I = $500 × 0.025 × 5 = $62.50. Option A ($12.50) is the interest for one year.
Option C ($625) and Option D ($6,250) are incorrect, likely from misapplying the rate or time. This question tests interest calculations in the Accounting and Finance category.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Accounting and Finance; Principles of Finance, Chapter 5.

NEW QUESTION # 107
Which of the following types of interviews should be conducted to ensure that assessments by key people are included in the hiring process?

A. Stress interviews
B. Behavioral interviews
C. Structured interviews
D. Sequential interviews

Answer: D

Explanation:
Sequential interviews involve multiple interviewers, often key stakeholders, assessing a candidate in separate sessions, ensuring diverse perspectives in the hiring process. Option A (behavioral interviews) focuses on past behavior but does not inherently include multiple assessors. Option B (stress interviews) tests candidate resilience, not broad assessment. Option D (structured interviews) uses standardized questions but does not guarantee multiple evaluators. This question aligns with the Communication and Career Development category, focusing on hiring practices.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Communication and Career Development; Human Resource Management, Chapter 7.

NEW QUESTION # 108
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