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

1. Which of the following is the best example of eminent domain?

A) The local government tells homeowners that they may not build a multifamily dwelling in an area containing only single-family dwellings.
B) The state government intends to build a ramp to the highway and takes privately owned land to complete the building project.
C) The local government lays pipeline beneath the surface of privately owned land.
D) The state government grants property ownership to homeowners who discover the property line runs through the middle of their home.

2. Which of the following limitations of email is a barrier to clear communication?

A) The sender will not be able to make the message seem as courteous as in person.
B) The message will not be accurately transmitted.
C) The recipient will not be able to judge non-verbal cues.
D) The message cannot be shared with others.

3. A company's financial statements show the following for the fiscal year: total assets of $1,200,000, total liabilities of $750,000, net income of $150,000, and dividends paid of $50,000. The company has no preferred stock, and the beginning retained earnings were $200,000. What is the company's ending retained earnings?

A) $400,000
B) $350,000
C) $300,000
D) $250,000

4. Which of the following file extensions indicates that the data are compressed?

A) .xml
B) .zip
C) .exe
D) .epub

5. Which of the following statements best describes a recession?

A) The amount of goods a given amount of money buys declines.
B) Businesses expand production and unemployment rises.
C) Demand for goods and services falls and unemployment rises.
D) Demand for goods and services rises and productivity falls.

Solutions: