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Quiz 2025 PRAXIS Efficient Business-Education-Content-Knowledge-5101 Exam Brain Dumps

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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions (Q109-Q114):

NEW QUESTION # 109
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 # 110
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. passive income
B. disposable income
C. discretionary income
D. supplementary income

Answer: C

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 # 111
Which of the following sentences is free of any gender, nationality, age, or race bias?

A. Firemen are the bravest and most courageous people in the world.
B. We need someone young and energetic to man the stockroom.
C. His conservative views will benefit the company's bottom line.
D. Cho Yung is a hardworking exchange student who excels in science.

Answer: D

Explanation:
Option D is free of bias, as it describes an individual's attributes (hardworking, excels in science) without stereotyping based on gender, nationality, age, or race. Option A uses "firemen," a gender-specific term, implying exclusion of women. Option B uses "his," assuming a male subject, introducing gender bias. Option C specifies "young," indicating age bias, and "man," suggesting gender bias. This question tests workplace communication ethics under the Communication and Career Development category.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Communication and Career Development; Business Communication, Chapter 3.

NEW QUESTION # 112
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. $25
C. $20
D. $45

Answer: C

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 # 113
At the close of a fiscal period, the Prepaid Insurance Account shows a debit balance of $600, and an examination of entries in the Insurance Register shows $500 as expired insurance. Which of the following is the appropriate adjusting entry to be made as a part of the adjusting process?

A. Debit Prepaid Insurance $100, credit Insurance Expense $100
B. Debit Insurance Expense $100, credit Prepaid Insurance $100
C. Debit Insurance Expense $500, credit Income and Expense Summary $500
D. Debit Insurance Expense $500, credit Prepaid Insurance $500

Answer: D

Explanation:
Prepaid insurance represents insurance paid in advance, recorded as an asset. At the end of the fiscal period, the portion that has expired ($500) must be recognized as an expense. The adjusting entry reduces the Prepaid Insurance account (asset) by crediting it and increases the Insurance Expense account by debiting it for the expired amount. Thus, the correct entry is: Debit Insurance Expense $500, Credit Prepaid Insurance $500.
Option A incorrectly adjusts for $100, which is the remaining prepaid amount. Option B reverses the accounts and amounts incorrectly. Option C involves the Income and Expense Summary, which is not relevant for this adjustment. This question tests adjusting entries, a key concept in the Accounting and Finance category.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Accounting and Finance; Accounting Principles, Chapter 3.

NEW QUESTION # 114
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