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PRAXIS Business-Education-Content-Knowledge-5101 Practice Test with Latest Business-Education-Content-Knowledge-5101 Exam Questions [2025]
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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions (Q48-Q53):
NEW QUESTION # 48
The primary goal of just-in-time inventory planning is to
- A. reduce the likelihood of running out of inventory
- B. reduce the amount of inventory kept on hand
- C. increase the space allocated for storing inventory
- D. reduce ordering costs
Answer: B
Explanation:
Just-in-time (JIT) inventory planning aims to minimize inventory levels by receiving goods only as needed, reducing storage costs and waste. Option A (ordering costs) is a secondary benefit. Option C (avoiding stockouts) is a concern but not the primary goal. Option D (increasing storage) contradicts JIT principles. This question aligns with theManagement and Marketing category, emphasizing operations management.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Management and Marketing; Operations Management, Chapter 12.
NEW QUESTION # 49
Which of the following best describes the law governing the use of copyrighted materials in the classroom and the teacher's responsibility in using these materials?
- A. Teachers may use unpublished materials as they consider appropriate.
- B. Teachers in public educational institutions have unlimited use of copyrighted materials.
- C. Materials found on the Internet are not covered by copyright laws and may be used as teachers consider appropriate.
- D. Teachers must assume that materials found on the Internet are copyrighted and should apply their district's fair-use guidelines.
Answer: D
Explanation:
Teachers must assume Internet materials are copyrighted and apply fair-use guidelines, which allow limited use for educational purposes, considering factors like purpose and amount used. Option A is incorrect, as use is not unlimited. Option B is incorrect, as unpublished materials still have copyright protections. Option C is incorrect, as Internet materials are typically copyrighted. This question aligns with the Business Law category, emphasizing copyright law in education.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Business Law; Business Law: Text and Cases, Chapter 8.
NEW QUESTION # 50
Membership in which of the following Career and Technical Student Organizations is best for a student interested in an accounting career?
- A. Family, Career and Community Leaders of America
- B. Business Professionals of America
- C. SkillsUSA
- D. Technology Student Association
Answer: B
Explanation:
Business Professionals of America (BPA) focuses on business-related fields, including accounting, offering competitions and activities tailored to finance and accounting careers. Option A (Technology Student Association) emphasizes STEM. Option B (SkillsUSA) focuses on trade and technical skills. Option D (FCCLA) targets family and consumer sciences. This question aligns with the Professional Business Education category, emphasizing student organizations.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Professional Business Education; BPA National Guidelines.
NEW QUESTION # 51
The current ratio of a business is computed by
- A. dividing net worth by net income
- B. subtracting total liabilities from total assets
- C. dividing the current assets by the net income
- D. dividing the current assets by the current liabilities
Answer: D
Explanation:
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations, calculated as Current Assets ÷ Current Liabilities. Option B (current assets ÷ net income) is incorrect, as net income is not a component of liquidity ratios. Option C (net worth ÷ net income) relates to return on equity, not liquidity. Option D (total assets # total liabilities) calculates net worth or equity, not the current ratio. This question aligns with the Accounting and Finance category, focusing on financial statement analysis.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Accounting and Finance; Financial Accounting, Chapter 13.
NEW QUESTION # 52
The primary purpose of the income statement of a business is to provide
- A. the debt-to-equity ratio of the business on a specific date
- B. the financial projections for the business for a specific period of time
- C. the financial progress of the business for a specific period of time
- D. a listing of accounts receivable and accounts payable on a specific date
Answer: C
Explanation:
The income statement, also known as the profit and loss statement, summarizes a company's revenues, expenses, and profits or losses over a specific period of time. Its primary purpose is to show the financial progress of the business, indicating whether it has made a profit or incurred a loss during that period. Option A (debt-to-equity ratio) is incorrect because this ratio is derived from the balance sheet, not the income statement. Option B (financial projections) refers to forecasts or budgets, not historical performance, which is the focus of the income statement. Option D (accounts receivable and payable) is also related to the balance sheet, not the income statement. The correct answer, C, aligns with the Praxis 5101 content category of Accounting and Finance, which includes understanding financial statements.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Accounting and Finance; Horngren's Financial & Managerial Accounting, Chapter 2.
NEW QUESTION # 53
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