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

1. Which of the following best defines a legally enforceable contract?

A) Agreement, consideration, and the mandatory requirement that only one of the parties is required to be rational and sane
B) Agreement, consideration, contractual capacity, and the mandatory requirement that the object of the contract is lawful
C) Agreement, consideration, and the mandatory inclusion of gift promises and moral obligations
D) Consideration without the mandatory requirement of mutual assent by the parties of the offer and acceptance

2. Of the following, the factor generally considered to be the most important in determining the success of a typical convenience store is

A) promotional programs
B) pricing analysis
C) store site
D) analysis of distribution

3. The interest rate on short-term loans that large banks charge their commercial borrowers who have excellent credit ratings is called the

A) funds rate
B) market rate
C) prime rate
D) discount rate

4. Which of the following describes how a company is most likely to benefit from expanding a product line?

A) Expanding a product line lets the company expand a generic product line.
B) Expanding a product line limits the company's allocation of preferred shelf space in the marketplace.
C) Customers who are loyal to the company's brands will be likely to try its new products.
D) Consumers are assured that they can rely on consistency across all the company's brands.

5. Which of the following best describes the market structure of the soft drink industry?

A) A monopoly that suffers from excessive competition
B) A monopoly that restricts further competition
C) An oligopoly that requires a huge upfront investment
D) An oligopoly that carries tight government restrictions

Solutions: