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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions (Q20-Q25):
NEW QUESTION # 20
Which of the following is the best example of engaging with an external business communication?
- A. Reading a Material Safety Data Sheet for a recently purchased chemical product
- B. Studying recruits' personality test scores prepared by human resources
- C. Considering an invitation from quality control to attend a Six Sigma meeting
- D. Analyzing an annual draft stock report from the chief financial officer
Answer: A
Explanation:
External business communication involves interactions or information exchange with entities outside the organization. Reading a Material Safety Data Sheet (MSDS) for a purchased chemical product involves engaging with information provided by an external supplier or regulatory body, making it the best example.
Option A (Six Sigma meeting) is internal, as quality control is within the organization. Option B (stock report) and Option C (personality test scores) are also internal, generated by the CFO and HR, respectively.
This question aligns with the Communication and Career Development category, emphasizing external communication.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Communication and Career Development; Business Communication, Chapter 2.
NEW QUESTION # 21
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. $62.50
- B. $12.50
- C. $625
- D. $6,250
Answer: A
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 # 22
Which of the following is the most effective way for a company to address a service recovery problem?
- A. Involving the customer, managers, and frontline employees to address and fix the problem
- B. Providing the customer with compensation for the problem, no matter the cost
- C. Offering the customer an apology for the problem, and then assuming the issue has been resolved
- D. Having only customer service employees deal directly with the customer to solve the problem
Answer: A
Explanation:
Effective service recovery involves collaboration among the customer, managers, and frontline employees to understand and resolve the issue, ensuring satisfaction and learning. Option A limits involvement to customer service, potentially missing broader insights. Option C (apology only) may not resolve the issue. Option D (unlimited compensation) is unsustainable. This question aligns with the Management and Marketing category, focusing on customer service.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Management and Marketing; Services Marketing, Chapter 7.
NEW QUESTION # 23
Which of the following types of reports presents facts, draws conclusions, and makes recommendations?
- A. Informational
- B. Periodic
- C. Progress
- D. Analytical
Answer: D
Explanation:
Analytical reports present data, analyze it to draw conclusions, and provide recommendations based on the findings. Option B (informational) reports only present facts without analysis or recommendations. Option C (periodic) reports provide regular updates, often without deep analysis. Option D (progress) reports track project advancements, not necessarily with conclusions or recommendations. This questionfalls under the Communication and Career Development category, focusing on business reporting.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Communication and Career Development; Business Communication, Chapter 10.
NEW QUESTION # 24
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. Enacting currency controls
- C. Applying concepts of planned economies
- D. Using developments created from research
Answer: D
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 # 25
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