PRAXIS II 0101 5101 BUSINESS
EDUCATION EXAM | PRACTICE
QUESTIONS AND DETAILED ANSWERS |
GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers | 100% Verified
Exam Prep
,Robinson Patman Act Passed in 1936, it aims to prevent businesses from selling the same product to different
people at different prices (price discrimination); this act strengthened the Clayton Act
Food and Drug Administration (FDA) Federal agency formed in 1913 that approves all food, drugs, and cosmetics for sale in the
US.
Consumer Product Safety Commission (CPSC) 1972, oversees the safety of products such as toys, electronics, and household furniture
Equal Employment Opportunity Commission (EEOC) 1964, ensures that employers do not discriminate against employees because of age,
race, color or national origin, religion, gender, or physical challenge.
Occupational Safety and Health Administration (OSHA) 1970, regulates the workplace environment; ensures that workplaces are safe and
healthful for employees
Securities and Exchange Commission (SEC) 1934 - regulates the stock markets
Environmental Protection Agency (EPA) a federal agency established in 1970 for the regulation of water and air pollution, toxic
waste, pesticides, and radiation
Better Business Bureau (BBB) One of the oldest nonprofit organizations that establishes self-regulation among
businesses.
Americans with Disabilities Act (ADA) 1992, Protects rights of disabled individuals in employment and public accommodation;
requires reasonable accommodation that enable disabled persons to work with dignity
Federal Communications Commission (FCC) a government agency created in 1934 to regulate American radio stations, and later
expanded to regulate television, wireless communications technologies, and other
broadcast media.
Unfair Trade Practices Law prevents large companies with market power from selling products at very low prices to
drive out their competition.
Family Medical Leave Act 1993; Requires employers with 50 or more workers to grant up to 12 weeks of unpaid
leave a year to allow workers to take time off to help care for a new baby or an ill family
member without fear of losing their jobs.
,Fair Labor Standards Act 1938 act which provided for a minimum wage and restricted shipments of goods
produced with child labor
Fair Credit Reporting Act 1970, A federal law that established procedures that consumer-reporting agencies must
follow in order to ensure that records are confidential, accurate, relevant and properly
used.
Fair Credit Billing Act 1975, protect consumers from unfair billing practices and to provide a mechanism for
addressing billing errors
Truth in Lending Act/ Consumer Credit Protection Act requires sellers and lenders to disclose credit terms or loan terms so that individuals can
shop around for the best financing arrangements
Equal Credit Opportunity Act prohibits creditors from denying credit based on gender, age, race, national origin,
religion, or marital status; the credit application can be judged only on the basis of
financial responsibility
Credit Repair Organizations Act makes it illegal for groups to make false promises or claims about improving your credit
history.
Fair Debt Collection Practices Added to Consumer Credit Protection Act, makes abusive and deceptive collection
practices by lenders illegal
Tort a wrongful act, other than breach of contract, for which an injured party has the right to
sue
Lein a claim on the property of another as security for a debt
contract a binding agreement between two or more persons that is enforceable by law
implied contract a contract that comes about from the actions of the parties
expressed contract A written or oral agreement in which all terms are explicitly stated.
unilateral contract one party makes a promise that the other party can accept only by doing something
bilateral contract a type of contract that arises when a promise is given in exchange for a return promise
, Financial opportunity An opportunity to make money
Capital The assets available for use in an investment
Income Statement a financial document that shows how much money; revenues; came in and how much
money; expenses; was paid out
Revenue The total amount of money made in a business over one year.
Gross Revenue the net sales minus the cost of goods and services sold
Operating Expenses Expenses incurred in paying for the day-to-day activities of the business
Net Income Also called profit. Calculated as the Revenue less Expenses
Profit The amount of money you gain in an investment
Entrepreneur someone who is willing to assume the responsibility, risk and rewards of starting and
operating a business
Personal Strength Some thing that you can do well
Personal Trait a quality or characteristic that you have
Credit rating an estimate, based on previous dealings, of a person's or an organization's ability to fulfill
their financial commitments
Interest a fixed charge for borrowing money; usually a percentage of the amount borrowed;
"how much interest do you pay on your mortgage?"
Interest rate Cost of borrowing money, expressed as a percentage of the amount borrowed per year.
Creditor The party or organization lending the money.
Debtor The party or organization that borrows the money.
EDUCATION EXAM | PRACTICE
QUESTIONS AND DETAILED ANSWERS |
GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers | 100% Verified
Exam Prep
,Robinson Patman Act Passed in 1936, it aims to prevent businesses from selling the same product to different
people at different prices (price discrimination); this act strengthened the Clayton Act
Food and Drug Administration (FDA) Federal agency formed in 1913 that approves all food, drugs, and cosmetics for sale in the
US.
Consumer Product Safety Commission (CPSC) 1972, oversees the safety of products such as toys, electronics, and household furniture
Equal Employment Opportunity Commission (EEOC) 1964, ensures that employers do not discriminate against employees because of age,
race, color or national origin, religion, gender, or physical challenge.
Occupational Safety and Health Administration (OSHA) 1970, regulates the workplace environment; ensures that workplaces are safe and
healthful for employees
Securities and Exchange Commission (SEC) 1934 - regulates the stock markets
Environmental Protection Agency (EPA) a federal agency established in 1970 for the regulation of water and air pollution, toxic
waste, pesticides, and radiation
Better Business Bureau (BBB) One of the oldest nonprofit organizations that establishes self-regulation among
businesses.
Americans with Disabilities Act (ADA) 1992, Protects rights of disabled individuals in employment and public accommodation;
requires reasonable accommodation that enable disabled persons to work with dignity
Federal Communications Commission (FCC) a government agency created in 1934 to regulate American radio stations, and later
expanded to regulate television, wireless communications technologies, and other
broadcast media.
Unfair Trade Practices Law prevents large companies with market power from selling products at very low prices to
drive out their competition.
Family Medical Leave Act 1993; Requires employers with 50 or more workers to grant up to 12 weeks of unpaid
leave a year to allow workers to take time off to help care for a new baby or an ill family
member without fear of losing their jobs.
,Fair Labor Standards Act 1938 act which provided for a minimum wage and restricted shipments of goods
produced with child labor
Fair Credit Reporting Act 1970, A federal law that established procedures that consumer-reporting agencies must
follow in order to ensure that records are confidential, accurate, relevant and properly
used.
Fair Credit Billing Act 1975, protect consumers from unfair billing practices and to provide a mechanism for
addressing billing errors
Truth in Lending Act/ Consumer Credit Protection Act requires sellers and lenders to disclose credit terms or loan terms so that individuals can
shop around for the best financing arrangements
Equal Credit Opportunity Act prohibits creditors from denying credit based on gender, age, race, national origin,
religion, or marital status; the credit application can be judged only on the basis of
financial responsibility
Credit Repair Organizations Act makes it illegal for groups to make false promises or claims about improving your credit
history.
Fair Debt Collection Practices Added to Consumer Credit Protection Act, makes abusive and deceptive collection
practices by lenders illegal
Tort a wrongful act, other than breach of contract, for which an injured party has the right to
sue
Lein a claim on the property of another as security for a debt
contract a binding agreement between two or more persons that is enforceable by law
implied contract a contract that comes about from the actions of the parties
expressed contract A written or oral agreement in which all terms are explicitly stated.
unilateral contract one party makes a promise that the other party can accept only by doing something
bilateral contract a type of contract that arises when a promise is given in exchange for a return promise
, Financial opportunity An opportunity to make money
Capital The assets available for use in an investment
Income Statement a financial document that shows how much money; revenues; came in and how much
money; expenses; was paid out
Revenue The total amount of money made in a business over one year.
Gross Revenue the net sales minus the cost of goods and services sold
Operating Expenses Expenses incurred in paying for the day-to-day activities of the business
Net Income Also called profit. Calculated as the Revenue less Expenses
Profit The amount of money you gain in an investment
Entrepreneur someone who is willing to assume the responsibility, risk and rewards of starting and
operating a business
Personal Strength Some thing that you can do well
Personal Trait a quality or characteristic that you have
Credit rating an estimate, based on previous dealings, of a person's or an organization's ability to fulfill
their financial commitments
Interest a fixed charge for borrowing money; usually a percentage of the amount borrowed;
"how much interest do you pay on your mortgage?"
Interest rate Cost of borrowing money, expressed as a percentage of the amount borrowed per year.
Creditor The party or organization lending the money.
Debtor The party or organization that borrows the money.
