2025 Trustable PRAXIS Exam Business-Education-Content-Knowledge-5101 Online
2025 Trustable PRAXIS Exam Business-Education-Content-Knowledge-5101 Online
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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions (Q88-Q93):
NEW QUESTION # 88
The current ratio of a business is computed by
- A. dividing net worth by net income
- B. dividing the current assets by the net income
- C. subtracting total liabilities from total assets
- 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 # 89
Which of the following procedures is most likely to improve the efficiency of a company's information- processing system?
- A. Standardizing formats
- B. Establishing priorities
- C. Setting standards
- D. Coding documents
Answer: A
Explanation:
Standardizing formats for data entry, storage, and retrieval streamlines a company's information-processing system, reducing errors and improving efficiency. Option B (coding documents) may help organization but is less impactful than standardization. Option C (setting standards) is vague and overlaps with A but is less specific. Option D (establishing priorities) affects task management, not system efficiency. This question aligns with the Information Technology category, emphasizing system optimization.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Information Technology; Management Information Systems, Chapter 5.
NEW QUESTION # 90
A warehouse manager wants to clarify the date and time of an employee meeting and sends an instant message (IM) to another manager in the warehouse. The use of IM is considered acceptable because the sender is most likely to be
- A. multitasking during a meeting
- B. avoiding a permanent record
- C. finishing a sensitive discussion
- D. needing an immediate response
Answer: D
Explanation:
Instant messaging (IM) is used for quick, real-time communication, making it suitable when the sender needs an immediate response, such as clarifying a meeting's date and time. Option A (avoiding a permanent record) is not the primary reason, as IMs can be logged. Option B (multitasking) is possible but not the best justification. Option C (sensitive discussion) would likely require a more secure or formal channel. This question falls under the Communication and Career Development category, focusing on communication tools.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Communication and Career Development; Business Communication, Chapter 6.
NEW QUESTION # 91
Which of the following actions provides the best advantage for an international high-tech business over its global competitors?
- A. Paying ad valorem tariffs
- B. Using developments created from research
- C. Enacting currency controls
- D. Applying concepts of planned economies
Answer: B
Explanation:
An international high-tech business gains a competitive advantage by leveraging research and development (R&D) to create innovative products or processes, differentiating itself in the market. Option A (paying tariffs) increases costs, not advantages. Option B (currency controls) is a government policy, not a business action. Option C (planned economies) restricts market-driven innovation. This question aligns with the Economics category, emphasizing competitive strategies.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Economics; Strategic Management, Chapter 8.
NEW QUESTION # 92
Company A is the category leader in the orange juice industry and produces Product A at $3.00 per unit.
Company B is the second category leader in the industry and produces Product B at $2.70 per unit. Because an early frost affected the orange crop, Company A raised the price of Product A to $4.00 per unit. Company B subsequently raised the price of Product B to $3.60 per unit. Which of the following pricing strategies is Company B using for Product B?
- A. Pure parity
- B. Dynamic parity
- C. Premium pricing
- D. Discount pricing
Answer: B
Explanation:
Dynamic parity pricing involves setting prices in response to a competitor's price changes while maintaining a relative price position. Company B raises Product B's price to $3.60 after Company A increases Product A's price to $4.00, keeping Product B's price lower but aligned with the market leader's adjustment. Option A (pure parity) implies matching the competitor's price exactly, which is not the case. Option C(premium pricing) involves setting a higher price for perceived superior value, not applicable here. Option D (discount pricing) involves consistently lower prices, not a reactive adjustment. This question aligns with the Management and Marketing category, focusing on pricing strategies.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Management and Marketing; Principles of Marketing, Chapter 10.
NEW QUESTION # 93
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