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

1. Which of the following is a market in which a group of companies buys and resells goods to companies that use these goods to create other products?

A) Governmental market
B) Organizational market
C) Demographic market
D) Consumer market

2. 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) $62.50
B) $625
C) $6,250
D) $12.50

3. Which of the following statements is true about all issued common stocks?

A) Ownership is transferred on organized stock exchanges.
B) They are a form of direct financing.
C) They pay periodic dividends that are fixed in nominal terms.
D) They are secured by the tangible assets of a corporation.

4. Which of the following best describes the relationship between a firm's assets, liabilities, and owners' equity?

A) The statement of cash flows
B) The accounting equation
C) An annual report
D) Net worth

5. Under ordinary circumstances, the average amount of unemployment in an economy is called the

A) frictional rate of unemployment
B) typical rate of unemployment
C) natural rate of unemployment
D) cyclical rate of unemployment

Solutions: