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

1. Which of the following describes how a company is most likely to benefit from expanding a product line?

A) Consumers are assured that they can rely on consistency across all the company's brands.
B) Expanding a product line limits the company's allocation of preferred shelf space in the marketplace.
C) Expanding a product line lets the company expand a generic product line.
D) Customers who are loyal to the company's brands will be likely to try its new products.

2. For the development and maintenance of a business webpage, it is essential that

A) the hardware support video and sound
B) the most current software be used
C) the webpage be continuously updated
D) the server be maintained in-house

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

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

4. Which of the following best illustrates a progressive tax system?

A) Taxpayers pay taxes based on income brackets, with the percentage of taxes paid on income increasing as the taxpayer moves to a higher bracket.
B) Taxpayers pay a flat percentage tax on sales, so that those who spend more pay more in taxes.
C) All taxpayers pay the same percentage of their income in taxes, with those who have higher incomes paying more in taxes.
D) Taxpayers pay a flat percentage tax based on the total value of their real estate holdings.

5. Which of the following actions is most likely to be considered a breach of social responsibility by a company?

A) Circumventing a zoning board decision that prohibits development of an environmentally sensitive area
B) Attempting to maximize profits by reducing overhead
C) Increasing employee productivity by reducing the number of employee hours used for each unit of production
D) Underbidding competitors for a government contract

Solutions: