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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions:
1. Which of the following is a primary reason for a country to employ the policy of protectionism?
A) Consumers have more choice in the variety, price, and quality of products.
B) Competition forces businesses to be more efficient and productive.
C) New jobs are created in areas such as global trade.
D) Foreign competition can lower the demand for products made domestically.
2. Which of the following components of a business plan primarily illustrates industry knowledge as well as any industry research findings and conclusions?
A) Executive summary
B) Market analysis
C) Organization and management
D) Service or product line
3. A college graduate wants to start a business and looks into franchise opportunities. The graduate has $30,000 and has narrowed the selection to three different franchise choices. Which of the following franchise credentials is the most important to review?
A) Franchise disclosure document
B) Fee schedule agreement
C) Owner's handbook
D) Broker policy agreement
4. A small hardware store purchases 5 hammers for $5 each and sells the hammers for $9 each. Which of the following amounts represents the total gross profit?
A) $25
B) $20
C) $45
D) $4
5. Martha sold 1,000 poinsettia plants at $9 each and had 100 remaining in inventory. Joe sold 1,000 poinsettia plants at $8 each and had none remaining in inventory. Which of the following can be inferred from the scenario?
A) Only Joe's price is at equilibrium.
B) Joe's price and Martha's price are at equilibrium.
C) Martha's price is below equilibrium.
D) Joe's price and Martha's price are above equilibrium.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: A |

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