GACE Business Education Exam
Questions and Verified Answers
2025/2026
Federal Insurance Contributions Act (FICA) and Medicare Taxes - CORRECT
ANSWER Fund the general programs of social security and Medicare, which
provide money and health benefits to senior citizens, people with
disabilities, and other eligible individuals
Property taxes - CORRECT ANSWER Levied on properties and are generally
based on the amount the property is worth
Gains taxes - CORRECT ANSWER Paid on the profit made from selling an
asset
Automated Teller Machine (ATM) - CORRECT ANSWER technology that
allows a bank customer to make deposits and withdrawals electronically 24
hours a day from his or her bank account
Sales taxes - CORRECT ANSWER Paid on items people buy
Law of diminishing returns - CORRECT ANSWER as there is an increase in
factor of production, eventually the per unit output of that factor will go
down
Civil case - CORRECT ANSWER dispute between two parties
Equal Credit Opportunity Act (ECOA) - CORRECT ANSWER removed
creditors' ability to consider marital status or child-bearing plans, and
mandated lenders must consider a women's income on the same basis as
the man's
,Electronic check - CORRECT ANSWER is not considered money, it merely
instructs the bank to move currency to another account in order to
complete a transaction
Case law - CORRECT ANSWER the verdicts of courts that can now be used
in new court cases to help plead cases and define the law
Bankruptcy Reform Act of 2005 - CORRECT ANSWER created to lower
bankruptcy code filings
Better business bureau (BBB) - CORRECT ANSWER keeps records on
companies and lists complaints
Environmental protection agency (EPA) - CORRECT ANSWER reducing the
environmental impact of business practice
Memorandum - CORRECT ANSWER informal form of communication used
in businesses
Checking account - CORRECT ANSWER Pays little to no interest but allows
people to easily withdraw by writing checks
Savings account - CORRECT ANSWER Doesn't allow for checks but offers
interest
Statutory law - CORRECT ANSWER codes and statutes the legislative bodies
have inacted
Administrative law - CORRECT ANSWER procedures that administrative
agencies create
Constitutional law - CORRECT ANSWER how the united states constitution
is interpreted and implemented
, tort law - CORRECT ANSWER civil claims that one party brings against
another
lawsuit - CORRECT ANSWER when one party brings a case against another
party in a court of law aka civil action
class action law suit - CORRECT ANSWER parties come together to make a
lawsuit as a group, which can appear much stronger because of the amount
of people
due process - CORRECT ANSWER a person's right to have the state respect
his legal rights
liability - CORRECT ANSWER a party's legal responsibility for behaviors,
actions, or inactions
negligence - CORRECT ANSWER a party does not show a reasonable
amount of care
corporate law - CORRECT ANSWER laws surrounding how corporations are
formed, dissolved, and run
labor laws - CORRECT ANSWER working conditions, discrimination, wages
tax law - CORRECT ANSWER taxes that business owe
contract law - CORRECT ANSWER govern contracts that business's enter
into on a regular basis
property law - CORRECT ANSWER how property is owned commonly seen
as business
antitrust law - CORRECT ANSWER does not allow mergers that would form
monopolies and other antitrust activities
Questions and Verified Answers
2025/2026
Federal Insurance Contributions Act (FICA) and Medicare Taxes - CORRECT
ANSWER Fund the general programs of social security and Medicare, which
provide money and health benefits to senior citizens, people with
disabilities, and other eligible individuals
Property taxes - CORRECT ANSWER Levied on properties and are generally
based on the amount the property is worth
Gains taxes - CORRECT ANSWER Paid on the profit made from selling an
asset
Automated Teller Machine (ATM) - CORRECT ANSWER technology that
allows a bank customer to make deposits and withdrawals electronically 24
hours a day from his or her bank account
Sales taxes - CORRECT ANSWER Paid on items people buy
Law of diminishing returns - CORRECT ANSWER as there is an increase in
factor of production, eventually the per unit output of that factor will go
down
Civil case - CORRECT ANSWER dispute between two parties
Equal Credit Opportunity Act (ECOA) - CORRECT ANSWER removed
creditors' ability to consider marital status or child-bearing plans, and
mandated lenders must consider a women's income on the same basis as
the man's
,Electronic check - CORRECT ANSWER is not considered money, it merely
instructs the bank to move currency to another account in order to
complete a transaction
Case law - CORRECT ANSWER the verdicts of courts that can now be used
in new court cases to help plead cases and define the law
Bankruptcy Reform Act of 2005 - CORRECT ANSWER created to lower
bankruptcy code filings
Better business bureau (BBB) - CORRECT ANSWER keeps records on
companies and lists complaints
Environmental protection agency (EPA) - CORRECT ANSWER reducing the
environmental impact of business practice
Memorandum - CORRECT ANSWER informal form of communication used
in businesses
Checking account - CORRECT ANSWER Pays little to no interest but allows
people to easily withdraw by writing checks
Savings account - CORRECT ANSWER Doesn't allow for checks but offers
interest
Statutory law - CORRECT ANSWER codes and statutes the legislative bodies
have inacted
Administrative law - CORRECT ANSWER procedures that administrative
agencies create
Constitutional law - CORRECT ANSWER how the united states constitution
is interpreted and implemented
, tort law - CORRECT ANSWER civil claims that one party brings against
another
lawsuit - CORRECT ANSWER when one party brings a case against another
party in a court of law aka civil action
class action law suit - CORRECT ANSWER parties come together to make a
lawsuit as a group, which can appear much stronger because of the amount
of people
due process - CORRECT ANSWER a person's right to have the state respect
his legal rights
liability - CORRECT ANSWER a party's legal responsibility for behaviors,
actions, or inactions
negligence - CORRECT ANSWER a party does not show a reasonable
amount of care
corporate law - CORRECT ANSWER laws surrounding how corporations are
formed, dissolved, and run
labor laws - CORRECT ANSWER working conditions, discrimination, wages
tax law - CORRECT ANSWER taxes that business owe
contract law - CORRECT ANSWER govern contracts that business's enter
into on a regular basis
property law - CORRECT ANSWER how property is owned commonly seen
as business
antitrust law - CORRECT ANSWER does not allow mergers that would form
monopolies and other antitrust activities
