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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions (Q53-Q58):

NEW QUESTION # 53
Which of the following statements most accurately describes the partnership form of a business organization?

A. Each partner is fully liable for all debts incurred by the partnership.
B. A partnership is more difficult and expensive to start up than a corporation.
C. Owners' liability is limited to the amount of their investment in the partnership.
D. Owners do not have control of daily decisions unless they are officers of the partnership.

Answer: A

Explanation:
In a general partnership, each partner has unlimited liability, meaning they are fully responsible for all partnership debts, regardless of their investment. Option A describes limited liability, applicable to corporations or limited partnerships. Option C is incorrect, as partnerships are simpler and less costly to start than corporations. Option D is incorrect, as partners typically have control over daily decisions. This question falls under the Entrepreneurship category, focusing on business structures.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Entrepreneurship; Business Law, Chapter 14.

NEW QUESTION # 54
If $500 were placed in a savings account that pays 2.5% simple interest each year, how much interest would be earned in five years?

A. $12.50
B. $6,250
C. $625
D. $62.50

Answer: D

Explanation:
Simple interest is calculated as I = P × R × T, where P = principal ($500), R = annual interest rate (2.5% =
0.025), and T = time (5 years). I = $500 × 0.025 × 5 = $62.50. Option A ($12.50) is the interest for one year.
Option C ($625) and Option D ($6,250) are incorrect, likely from misapplying the rate or time. This question tests interest 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 # 55
Processing and organizing data to create, store, and retrieve documents is best known as

A. database management
B. formatting
C. file management
D. outsourcing

Answer: C

Explanation:
File management involves processing and organizing data to create, store, and retrieve documents within a computer system, such as managing folders and files. Option A (database management) focuses on structured data in databases, not general documents. Option C (formatting) refers to document appearance. Option D (outsourcing) involves delegating tasks externally. This question falls under the Information Technology category, emphasizing data organization.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Information Technology; Operating Systems Concepts, Chapter 11.

NEW QUESTION # 56
Which of the following is most likely to teach skills that will help students make a smooth transition from school to work?

A. Joining a student organization
B. Developing an electronic portfolio
C. Searching for a part-time job
D. Making an educational plan

Answer: B

Explanation:
Developing an electronic portfolio showcases students' skills, projects, and achievements, directly demonstrating competencies to employers, aiding the school-to-work transition. Option A (educational plan) guides academic paths, not workplace skills. Option B (student organization) builds leadership but is less direct. Option C (part-time job) provides experience but is not curriculum-based. This question falls under the Professional Business Education category, emphasizing career preparation.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Professional Business Education; Career and Technical Education, Chapter 6.

NEW QUESTION # 57
The primary goal of just-in-time inventory planning is to

A. reduce the amount of inventory kept on hand
B. increase the space allocated for storing inventory
C. reduce ordering costs
D. reduce the likelihood of running out of inventory

Answer: A

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 # 58
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