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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions (Q111-Q116):

NEW QUESTION # 111
Which of the following management styles supports the idea that employees are just a replaceable resource and not the core of the organization?

A. Paternalistic
B. Democratic
C. Laissez-faire
D. Autocratic

Answer: D

Explanation:
Autocratic management views employees as replaceable resources, with managers making decisions unilaterally, prioritizing control over employee input. Option B (paternalistic) treats employees like family, with guidance. Option C (democratic) values employee participation. Option D (laissez-faire) allows employee autonomy. This question falls under the Management and Marketing category, emphasizing management styles.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Management and Marketing; Management: Leading & Collaborating, Chapter 12.

NEW QUESTION # 112
A college graduate wants to start a business and looks into franchise opportunities. The graduate has $30,000 and has narrowed the selection to three different franchise choices. Which of the following franchise credentials is the most important to review?

A. Fee schedule agreement
B. Owner's handbook
C. Franchise disclosure document
D. Broker policy agreement

Answer: C

Explanation:
The Franchise Disclosure Document (FDD) is a legal document required by the Federal Trade Commission, providing detailed information about the franchisor, including fees, obligations, financial performance, and risks. It is critical for evaluating franchise opportunities. Option A (owner's handbook) is operational, not a credential. Option B (fee schedule agreement) is part of the FDD but not comprehensive. Option C (broker policy agreement) is not a standard franchise document. This question falls under the Entrepreneurship category, focusing on franchise evaluation.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Entrepreneurship; Entrepreneurship: Starting and Operating a Small Business, Chapter 5.

NEW QUESTION # 113
A human resources director at a food distribution company is responsible for making sure that employees are paid according to a weekly time schedule. While the employees have chosen to be paid by direct deposit to their accounts, the company must still inform employees that the transaction has occurred. Which of the following is the most effective communication mode for providing the pertinent information?

A. Conducting a video conference for each department
B. Informing the workforce in a timely email notification
C. Sending each employee a confidential paper record
D. Posting a generic statement in the company's newsletter

Answer: B

Explanation:
A timely email notification is the most effective and efficient way to inform employees of direct deposit transactions, as it is quick, scalable, and can be personalized while maintaining confidentiality. Option A (video conference) is time-consuming and impractical for routine notifications. Option B (paper record) is inefficient and less secure. Option D (newsletter statement) lacks specificity and confidentiality. This question aligns with the Communication and Career Development category, emphasizing workplace communication methods.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Communication and Career Development; Business Communication, Chapter 6.

NEW QUESTION # 114
A company's financial statements show the following for the fiscal year: total assets of $1,200,000, total liabilities of $750,000, net income of $150,000, and dividends paid of $50,000. The company has no preferred stock, and the beginning retained earnings were $200,000. What is the company's ending retained earnings?

A. $350,000
B. $250,000
C. $300,000
D. $400,000

Answer: C

Explanation:
Retained earnings represent the cumulative net income retained by a company after dividends. The formula for ending retained earnings is: Ending Retained Earnings = Beginning Retained Earnings + Net Income # Dividends. Given the beginning retainedearnings of $200,000, net income of $150,000, and dividends of
$50,000, the calculation is: $200,000 + $150,000 # $50,000 = $300,000. Option A ($250,000) incorrectly omits net income or miscalculates dividends. Option C ($350,000) ignores dividends. Option D ($400,000) adds dividends instead of subtracting. This question tests advanced financial statement analysis, a critical component of the Accounting and Finance category, requiring precise application of the retained earnings formula under time pressure, typical of the Praxis 5101 exam's complexity.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Accounting and Finance; Financial Accounting, Chapter 11.

NEW QUESTION # 115
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. needing an immediate response
B. avoiding a permanent record
C. finishing a sensitive discussion
D. multitasking during a meeting

Answer: A

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 # 116
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