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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions (Q102-Q107):
NEW QUESTION # 102
Karl's Cleaners has been successful in selling spray kitchen cleaners and disinfectants. The company will soon be introducing a new product called Karl's Sponges. Which of the following marketing strategies is Karl' s Cleaners most likely using?
- A. Brand licensing
- B. Co-branding
- C. Brand insistence
- D. Brand extension
Answer: D
Explanation:
Brand extension involves introducing a new product (Karl's Sponges) under an existing successful brand (Karl's Cleaners), leveraging brand recognition. Option A (co-branding) involves partnering with another brand. Option B (brand licensing) allows another company to use the brand. Option D (brand insistence) is a consumer behavior, not a strategy. This question falls under the Management and Marketing category, focusing on branding strategies.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Management and Marketing; Principles of Marketing, Chapter 9.
NEW QUESTION # 103
If a mortgage has a 12% annual rate of interest and a $45,375 principal balance at the start of June, what will the principal balance be at the end of June after a $650 payment is made?
- A. $44,725.00
- B. $45,178.75
- C. $45,172.25
- D. $44,731.50
Answer: B
Explanation:
To calculate the new principal balance, first determine the monthly interest. The annual interest rate is 12%, so the monthly rate is 12% ÷ 12 = 1% or 0.01. The interest for June is 0.01 × $45,375 = $453.75. The $650 payment is applied first to interest ($453.75), leaving $650 # $453.75 = $196.25 to reduce the principal. New principal = $45,375 # $196.25 = $45,178.75. Option A, B, and C miscalculate the interest or principal reduction. This question tests mortgage calculations in the Accounting and Finance category.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Accounting and Finance; Principles of Finance, Chapter 5.
NEW QUESTION # 104
Stacey has just received her first paycheck. As a responsible spender, Stacey pays her housing, food, and necessary clothing expenses first. The money that remains after paying those expenses is called
- A. supplementary income
- B. discretionary income
- C. passive income
- D. disposable income
Answer: B
Explanation:
Discretionary income is the money remaining after paying for necessities like housing, food, and clothing, available for non-essential spending. Option A (disposable income) is income after taxes, including money for necessities. Option C (supplementary income) is not a standard term. Option D (passive income) is earned without active work, like investments. This question aligns with the Accounting and Finance category, emphasizing personal finance.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Accounting and Finance; Personal Finance, Chapter 3.
NEW QUESTION # 105
Which of the following is a primary reason for a country to employ the policy of protectionism?
- A. Competition forces businesses to be more efficient and productive.
- B. New jobs are created in areas such as global trade.
- C. Foreign competition can lower the demand for products made domestically.
- D. Consumers have more choice in the variety, price, and quality of products.
Answer: C
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 # 106
A small hardware store purchases 5 hammers for $5 each and sells the hammers for $9 each. Which of the following amounts represents the total gross profit?
- A. $4
- B. $20
- C. $25
- D. $45
Answer: B
Explanation:
Gross profit is calculated as total revenue minus the cost of goods sold (COGS). The store purchases 5 hammers at $5 each, so COGS = 5 × $5 = $25. The hammers are sold at $9 each, so total revenue = 5 × $9 =
$45. Gross profit = $45 # $25 = $20. Option A ($4) represents the profit per hammer, not the total. Option C ($25) is the COGS, and Option D ($45) is the total revenue. This question tests basic accounting principles under the Accounting and Finance category.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Accounting and Finance; Accounting Principles, Chapter 5.
NEW QUESTION # 107
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