AEPA Business Exam

The Business test measures your knowledge according to the Arizona Academic Standards. Success on the test indicates that you are qualified to teach business in Arizona public schools. The test content is drawn from five subareas based on AEPA learning objectives: Business Management (30% of the test); Accounting (17%); Business Technology and Information Systems (22%); Economics and Consumer Finance (18%); and Entrepreneurship and Employment (13%). The test covers basic principles and applications of these five topics, in addition to narrower content within them. Within the Business Management subarea, for instance, test-takers should know how the behaviors of organizations, groups, and individuals relate to business management; they should be familiar with human resources, legal and ethical aspects of business, and the role of international business. Other content includes advanced accounting and the principles and procedures of financial statements. For the Business Technology and Information Systems section, test-takers should know, not only material aspects of business communications (e.g., office equipment and computer technology), but also about the ethics and security of communications systems. The test also covers macro- and microeconomics, personal finance (e.g., banking and investing), and techniques of quantitative analysis, in addition to entrepreneurship (business responsibilities, employment, laws and regulations related to the workplace, etc.)

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AEPA Business Practice Questions

1. What type of business features no ownership restriction, some liability for some owners, and single taxation of business income?

A: limited liability partnership
B: general partnership
C: limited liability company
D: corporation

2. The value of the output provided by a given resource is known as its _____.

A: variability
B: productivity
C: durability
D: marginal utility

3. Which of the following statements is true of corporations?

A: They are the most popular form of new business.
B: They are the easiest form of new business to start.
C: They have the easiest time generating investment.
D: They are barely regulated by the federal government.

4. What is another name for the interest rate given by banks to trustworthy businesses?

A: equilibrium interest rate
B: subprime rate
C: market rate
D: prime rate

5. What is the name for a union's efforts to force an employer to hire more employees than necessary?

A: featherbedding
B: collusion
C: strike busting
D: mollycoddling

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Answer key

1. C. A limited liability company has a very flexible management structure, with the limited liability of a corporation and the single-tax provision of a partnership.
2. B. Productivity measures are most commonly applied to employees, but they can also be applied to equipment and natural resources.
3. C. Corporations, in part because of their tax advantages and minimal liability, are able to generate large investments quickly.
4. D. The prime rate is the lowest interest rate offered by a bank.
5. A. Employers often appeal to the government when they feel they are victims of featherbedding.