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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions (Q116-Q121):

NEW QUESTION # 116
Which of the following best describes the relationship between a firm's assets, liabilities, and owners' equity?

A. The statement of cash flows
B. An annual report
C. The accounting equation
D. Net worth

Answer: C

Explanation:
The accounting equation, Assets = Liabilities + Owners' Equity, defines the relationship between a firm's resources (assets), obligations (liabilities), and owners' residual claims (equity). Option A (net worth) is a derived value, not the equation itself. Option B (statement of cash flows) tracks cash movements, not this relationship. Option C (annual report) is a comprehensive document, not a specific equation. This is a core 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 1.

NEW QUESTION # 117
Which of the following is characteristic of a laissez-faire management style?

A. Asking for employee input but failing to follow up on suggestions
B. Taking charge and solely developing policies and procedures
C. Permitting employees to make independent decisions and providing only general guidance
D. Seeking input of all workers yet exercising total control

Answer: C

Explanation:
Laissez-faire management involves minimal direct supervision, allowing employees to make independent decisions with general guidance. Option B describes a pseudo-democratic style. Option C is autocratic management. Option D indicates poor follow-through, not laissez-faire. 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 # 118
Which of the following is the primary purpose of job performance standards?

A. To clarify the structure of an organization
B. To identify the qualifications needed to hold a position
C. To identify work expectations for the employee
D. To define the goals to be accomplished by the employer

Answer: C

Explanation:
Job performance standards outline the expectations for an employee's work, specifying the quality, quantity, and timeliness of tasks. They guide employees in meeting job requirements and are used for performance evaluations. Option A (organizational structure) relates to organizational charts, not performance standards.
Option C (qualifications) pertains to job descriptions or hiring criteria. Option D (employer goals) is broader and not specific to individual employee performance. This question falls under the Communication and Career Development category, as it involves workplace expectations.
Reference:ETS Praxis Business Education: Content Knowledge (5101) StudyCompanion, Section on Communication and Career Development; Human Resource Management, Chapter 6.

NEW QUESTION # 119
Which of the following is the best example of engaging with an external business communication?

A. Analyzing an annual draft stock report from the chief financial officer
B. Considering an invitation from quality control to attend a Six Sigma meeting
C. Reading a Material Safety Data Sheet for a recently purchased chemical product
D. Studying recruits' personality test scores prepared by human resources

Answer: C

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 # 120
Which of the following steps in new product development should occur first?

A. Business analysis
B. Idea generation
C. Idea evaluation
D. Commercialization

Answer: B

Explanation:
Idea generation is the first step in new product development, involving brainstorming and identifying potential product concepts. Option B (idea evaluation) follows to screen ideas. Option C (business analysis) assesses feasibility after screening. Option D (commercialization) is the final launch step. This question aligns with the Management and Marketing category, focusing on product development processes.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Management and Marketing; Principles of Marketing, Chapter 8.

NEW QUESTION # 121
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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions (Q116-Q121):

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