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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions (Q22-Q27):

NEW QUESTION # 22
The primary purpose of a local area network (LAN) is to

A. display data on a monitor connected to a processor by cable
B. facilitate communication via a modem
C. permit high-speed communication between various kinds of electronic equipment within an area
D. enable distributors of data-processing equipment to provide assistance to users more efficiently

Answer: C

Explanation:
A local area network (LAN) connects devices within a limited area, such as an office, to enable high-speed communication and resource sharing among computers, printers, and other equipment. Option B (distributors' assistance) is unrelated to LAN functionality. Option C (modem communication) pertains to wide area networks or Internet access, not LANs. Option D (monitor display) is a hardware function, not a network purpose. This question falls under the Information Technology category, focusing on networking.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Information Technology; Computer Networking: A Top-Down Approach, Chapter 1.

NEW QUESTION # 23
Distribution, pricing, and promotion of the product are presented in which section of the business plan?

A. Production
B. Marketing
C. Organization
D. Merchandising

Answer: B

Explanation:
The marketing section of a business plan outlines strategies for distribution (how the product reaches customers), pricing (cost to customers), and promotion (advertising and sales efforts). Option B (production) focuses on manufacturing processes. Option C (merchandising) is a retail function, not a business plan section. Option D (organization) covers management structure. This question falls under the Management and Marketing category, focusing on business planning.
Reference:ETS Praxis Business Education: Content Knowledge (5101) StudyCompanion, Section on Management and Marketing; Entrepreneurship: Starting and Operating a Small Business, Chapter 7.

NEW QUESTION # 24
Membership in which of the following Career and Technical Student Organizations is best for a student interested in an accounting career?

A. SkillsUSA
B. Technology Student Association
C. Business Professionals of America
D. Family, Career and Community Leaders of America

Answer: C

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 # 25
The current ratio of a business is computed by

A. dividing net worth by net income
B. dividing the current assets by the current liabilities
C. subtracting total liabilities from total assets
D. dividing the current assets by the net income

Answer: B

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 # 26
Which of the following is an example of a primary source?

A. Conducting an interview
B. Reading a book
C. Searching a website
D. Studying a journal article

Answer: A

Explanation:
A primary source provides firsthand information or original data, such as an interview, where the information comes directly from the source. Option A (journal article) is typically a secondary source, as it analyzes or interprets primary data. Option B (book) is usually secondary, unless it is an autobiography or original document. Option D (website) can contain primary or secondary information but is not inherently primary.
Conducting an interview directly gathers original data, making it a primary source. This question aligns with the Communication and Career Development category, emphasizing research and communication skills.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Communication and Career Development; Business Research Methods, Chapter 4.

NEW QUESTION # 27
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