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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions (Q69-Q74):

NEW QUESTION # 69
Which of the following statements most accurately describes the partnership form of a business organization?

A. Each partner is fully liable for all debts incurred by the partnership.
B. A partnership is more difficult and expensive to start up than a corporation.
C. Owners do not have control of daily decisions unless they are officers of the partnership.
D. Owners' liability is limited to the amount of their investment in the partnership.

Answer: A

Explanation:
In a general partnership, each partner has unlimited liability, meaning they are fully responsible for all partnership debts, regardless of their investment. Option A describes limited liability, applicable to corporations or limited partnerships. Option C is incorrect, as partnerships are simpler and less costly to start than corporations. Option D is incorrect, as partners typically have control over daily decisions. This question falls under the Entrepreneurship category, focusing on business structures.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Entrepreneurship; Business Law, Chapter 14.

NEW QUESTION # 70
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. $250,000
B. $300,000
C. $350,000
D. $400,000

Answer: B

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 # 71
A manager meets with a shift supervisor to discuss the actions of a subordinate. After verifying the supervisor' s statements, the manager asks a few questions to clarify and confirm understanding of the issue. Which of the following types of listening is the manager using?

A. Empathetic
B. Casual
C. Reflective
D. Selective

Answer: C

Explanation:
Reflective listening involves actively verifying and clarifying information to ensure understanding, as the manager does by asking questions to confirm the supervisor's statements. Option A (empathetic) focuses on understanding emotions, not necessarily clarifying facts. Option B (casual) is informal and lacks focus.
Option C (selective) involves hearing only parts of the message, which is not the case here. This question aligns with the Communication and Career Development category, emphasizing effective listening skills.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Communication and Career Development; Business Communication, Chapter 4.

NEW QUESTION # 72
In Jennifer's workplace, employees are encouraged to participate in problem-solving and quality improvement. Which of the following is true about Jennifer's employer?

A. Her employer takes a hands-off approach.
B. Her employer practices employee empowerment.
C. Her employer needs to be more proactive.
D. Her employer risks encouraging power struggles.

Answer: B

Explanation:
Encouraging employee participation in problem-solving and quality improvement reflectsemployee empowerment, where workers are given authority and responsibility to contribute to organizational goals.
Option A (power struggles) is a potential risk but not the primary outcome. Option C (more proactive) is incorrect, as the employer is already proactive. Option D (hands-off) contradicts active encouragement. This question aligns with the Management and Marketing category, emphasizing management practices.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Management and Marketing; Management: Leading & Collaborating, Chapter 14.

NEW QUESTION # 73
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. Informing the workforce in a timely email notification
B. Sending each employee a confidential paper record
C. Conducting a video conference for each department
D. Posting a generic statement in the company's newsletter

Answer: A

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 # 74
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Business-Education-Content-Knowledge-5101 Exam Bootcamp - Quiz PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Realistic Exam Bible

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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions (Q69-Q74):

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