Praxis Business-Education-Content-Knowledge-5101 - Praxis Business Education: Content Knowledge (5101) Exam

A legally enforceable contract requires an agreement (offer and acceptance), consideration (something of value exchanged), contractual capacity (parties must be competent), and a lawful object (purpose must be legal). Option A is incorrect, as both parties must have capacity. Option B is incorrect, as gift promises and moral obligations are not enforceable. Option C lacks mutual assent, a key element. This question aligns with the Business Law category, focusing on contract law.

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.

A local area network (LAN) connects devices within a limited area, such as an office, to enable high-speed communication and resource sharing among computers, printers, and other equipment. Option B (distributors’ assistance) is unrelated to LAN functionality. Option C (modem communication) pertains to wide area networks or Internet access, not LANs. Option D (monitor display) is a hardware function, not a network purpose. This question falls under the Information Technology category, focusing on networking.

Keeping abreast of changes in computer software ensures students learn current, relevant technology skills, enhancing their employability in modern workplaces. Option B (high enrollments) focuses on quantity, not skill quality. Option C (student list) is administrative, not skill-focused. Option D (equipment checklist) supports infrastructure, not direct skill development. This question aligns with the Professional Business Education category, emphasizing curriculum relevance.

Business Professionals of America (BPA) focuses on business-related fields, including accounting, offering competitions and activities tailored to finance and accounting careers. Option A (Technology Student Association) emphasizes STEM. Option B (SkillsUSA) focuses on trade and technical skills. Option D (FCCLA) targets family and consumer sciences. This question aligns with the Professional Business Education category, emphasizing student organizations.

Diversification, spreading investments across different assets or sectors, is the standard guideline for managing financial risk, as it reduces exposure to any single asset’s volatility. Option B (liquidization) is not a standard term; liquidation refers to selling assets, not risk management. Option C (securitization) involves pooling assets into securities, not directly managing risk. Option D (capitalization) refers to funding structure, not risk reduction. This question aligns with the Accounting and Finance category, focusing on risk management.