PRAXIS II BUSINESS
EDUCATION 2026 STUDY GUIDE |
PRACTICE QUESTIONS, ANSWERS &
RATIONALES
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales Included
,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.
Finance ..., the management of money and credit and banking and investments
Advertising ..., the business of drawing public attention to goods and services
Information Technology ..., the use of technology to move and process information
Target Marketing ..., focusing all marketing decisions on a very specific group of people who you
want to reach.
Administration ..., the management of any office, business, or organization; direction.
Parent Company A company that controls or owns another company or companies.
Brand name, symbol, or design used to identify a product.
Brand Loyalty a favorable attitude toward and consistent purchase of a single brand over time
Logo An emblematic design adopted by an organization to identify its products.
Market share A company's product sales as a percentage of total sales for that industry
Jingle a short piece with a catchy repetition, used in commercials
Slogan Catchy phrase or words that identify a product or company
Divergent Thinking a type of thinking that is associated with creativity - seeing lots of solutions to a
problem
Design Brief A written plan that identifies a problem to be solved, its criteria, and its
constraints.
EDUCATION 2026 STUDY GUIDE |
PRACTICE QUESTIONS, ANSWERS &
RATIONALES
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales Included
,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.
Finance ..., the management of money and credit and banking and investments
Advertising ..., the business of drawing public attention to goods and services
Information Technology ..., the use of technology to move and process information
Target Marketing ..., focusing all marketing decisions on a very specific group of people who you
want to reach.
Administration ..., the management of any office, business, or organization; direction.
Parent Company A company that controls or owns another company or companies.
Brand name, symbol, or design used to identify a product.
Brand Loyalty a favorable attitude toward and consistent purchase of a single brand over time
Logo An emblematic design adopted by an organization to identify its products.
Market share A company's product sales as a percentage of total sales for that industry
Jingle a short piece with a catchy repetition, used in commercials
Slogan Catchy phrase or words that identify a product or company
Divergent Thinking a type of thinking that is associated with creativity - seeing lots of solutions to a
problem
Design Brief A written plan that identifies a problem to be solved, its criteria, and its
constraints.
