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

1. The primary goal of just-in-time inventory planning is to

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

2. To exchange one currency for another in international transactions, companies rely on a mechanism called the

A) Eurocurrency market
B) foreign exchange market
C) international bond market
D) international equity market

3. 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) $45,178.75
B) $44,725.00
C) $45,172.25
D) $44,731.50

4. Which of the following is a market in which a group of companies buys and resells goods to companies that use these goods to create other products?

A) Consumer market
B) Demographic market
C) Organizational market
D) Governmental market

5. 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

Solutions: