Free Praxis Business Education (5101) Step-by-Step Study Program practice test: are you ready?

5 sample Praxis Business Education (5101) Step-by-Step Study Program questions, explained

From the practice tests in our guide. Try them before you open the answer.

1. 1. A sharp increase in the price of cocoa beans will most likely cause the supply curve for chocolate to:

   • A. become perfectly elastic.
   • B. shift to the left.
   • C. remain unchanged.
   • D. shift to the right.
   Show the answer

   Correct: B (shift to the left.).

   Cocoa beans are an input in chocolate production. Higher input costs reduce the quantity sellers offer at every price, shifting the supply curve to the left.

   Topic: Economics, Microeconomics, Macroeconomics, and the Global Economy

2. 2. An increase to which account is properly recorded as a credit?

   • A. Wages Expense
   • B. Prepaid Rent
   • C. Accounts Payable
   • D. Supplies
   Show the answer

   Correct: C (Accounts Payable).

   Accounts Payable is a liability account, and liabilities increase on the credit side. Supplies and Prepaid Rent are assets, and Wages Expense is an expense, all of which increase with debits.

   Topic: Accounting, Recording Transactions and Preparing Financial Statements

3. 3. Given the present value of an ordinary annuity, how should the present value of an otherwise identical annuity due be calculated?

   • A. Divide by (1 + r)
   • B. Multiply by r
   • C. Add one additional payment to the total
   • D. Multiply by (1 + r)
   Show the answer

   Correct: D (Multiply by (1 + r)).

   Each annuity due payment arrives one period earlier, so it is discounted one fewer period. Multiplying the ordinary annuity present value by (1 + r) makes that adjustment.

   Topic: Finance, Capital Budgeting, Securities, and Risk Management

4. 4. In the organizing function of management, 'division of labor' refers to which of the following?

   • A. Assigning each employee a single manager
   • B. Combining unrelated tasks into one broad role
   • C. Breaking a large job into smaller, specialized tasks performed by different people
   • D. Giving every employee the same number of tasks
   Show the answer

   Correct: C (Breaking a large job into smaller, specialized tasks performed by different people).

   Division of labor is the assignment of different tasks to different people based on specialization. Distributing equal workloads or assigning a single manager is a different organizing concept.

   Topic: Management, Leading People and Organizational Systems

5. 5. A craft beekeeping company is evaluating the office snack buying segment. The firm can measure the segment's size using published industry data and can reach the buyers through trade magazines. However, the segment would generate only about 3,000 jars of honey per year, while the company needs to sell 12,000 jars to make a dedicated product line profitable. Which criterion for segment attractiveness is NOT satisfied?

   • A. Measurable
   • B. Responsive
   • C. Accessible
   • D. Substantial
   Show the answer

   Correct: D (Substantial).

   The segment is measurable and accessible, but at roughly 3,000 jars a year it falls far short of the 12,000-jar minimum needed for the line to be profitable, so it fails the substantial criterion.

   Topic: Marketing, Strategy, Research, and the Marketing Mix

Frequently asked questions

Is this Praxis Business Education (5101) Step-by-Step Study Program practice test free?

Yes. It is free, it needs no account, and you see your result immediately.

How is the readiness verdict calculated?

80% or more correct = ready, 65-79% = almost, below 65% = not yet. It is a conservative bar for practice, not the official passing score of the exam.

Where do the questions come from?

From the practice tests in our Praxis Business Education (5101) Step-by-Step Study Program study guide, mixed across every topic of the exam: 25 questions per attempt. The sample questions on this page are not repeated in the test.