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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions (Q120-Q125):
NEW QUESTION # 120
The primary purpose of the income statement of a business is to provide
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 # 121
For the development and maintenance of a business webpage, it is essential that
Answer: D
Explanation:
A business webpage must be continuously updated to ensure content remains relevant, accurate, and engaging, maintaining customer trust and search engine rankings. Option A (current software) is important but not essential, as older software can still function. Option C (video and sound support) is optional, depending on the webpage's purpose. Option D (in-house server) is not necessary, as many businesses use third-party hosting. This question aligns with the Information Technology category, emphasizing web management.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Information Technology; Web Design: Principles and Practices, Chapter 6.
NEW QUESTION # 122
Which of the following issues was the Computer Fraud and Abuse Act (CFAA) originally created to address?
Answer: B
Explanation:
The Computer Fraud and Abuse Act (CFAA) of 1986 was originally enacted to address hacking, specifically unauthorized access to computer systems. Option A (unsolicited emails) is covered by laws like CAN-SPAM.
Option B (identity theft) is addressed by other statutes, like the Identity Theft and Assumption Deterrence Act. Option D (cyberbullying) is handled under state laws or cyberstalking regulations. This question falls under the Information Technology category, emphasizing cyberlaw.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Information Technology; Cybersecurity Law, Chapter 2.
NEW QUESTION # 123
Which of the following is a primary reason for a country to employ the policy of protectionism?
Answer: B
Explanation:
Protectionism, such as tariffs or quotas, is used to shield domestic industries from foreign competition, which can reduce demand for local products. Option A (new jobs in trade) is not a primary reason, as protectionism focuses on existing industries. Option B (consumer choice) is reduced by protectionism. Option D (efficiency) is a benefit of free trade, not protectionism. This question aligns with the Economics category, focusing on trade policy.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Economics; International Economics, Chapter 9.
NEW QUESTION # 124
A business education teacher is preparing a lesson on contract law and wants to illustrate a scenario where a contract is voidable due to misrepresentation. Which of the following scenarios best demonstrates a voidable contract due to fraudulent misrepresentation?
Answer: D
Explanation:
A voidable contract can be canceled by one party due to fraudulent misrepresentation, which requires a false statement of fact, made knowingly or recklessly, with intent to induce reliance, and actual reliance causing harm. In Option A, the vendor's claim that the laptop is new, despite knowing it is refurbished, is a deliberate false statement, inducing the student's purchase, making the contract voidable due to fraud. Option B involves a mistake, not fraudulent misrepresentation, as there's no intent to deceive. Option C is a negotiation issue, not misrepresentation, as the offer was clear. Option D involves a minor defect, not a false statement of fact, and lacks fraudulent intent. This question tests nuanced understanding of contract law, a key area in the Business Law category, challenging candidates to distinguish between types of misrepresentation and contract enforceability, reflecting the Praxis 5101 exam's depth.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Business Law; Business Law: Text and Cases, Chapter 12.
NEW QUESTION # 125
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