The AEPA Business Exam tests your qualifications as a business teacher in accordance with the Arizona Academic Standards. Successful completion qualifies you to teach Business in Arizona public schools. Test questions come from five areas based on AEPA learning objectives. The five areas and their weight are as follows: 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 taker is required to have knowledge of the role of management in business, procedures for planning, organizing, staffing businesses, the behavior of groups, individuals and corporations, business law, international business, and marketing. The AEPA Business Exam will also cover basic and advanced accounting, business communications, information technology, macro- and microeconomics, banking and personal finance, and entrepreneurship. Other areas of required knowledge include ethics and security in business, how law and regulations impact business, and procedures for finding and starting business careers.
AEPA Business Exam Study Questions
1. A homeowner is attempting to choose between several mortgage loans for a $200,000 home. Which of the following would have the lowest monthly payment?
a. A 30-year fixed rate mortgage at 6%
b. A 15-year fixed rate mortgage at 7%
c. A 30-year fixed rate mortgage at 12%
d. A 15-year fixed rate mortgage at 12%
2. The biggest factor that leads American companies to manufacture their products overseas in developing countries like China and India is:
a. Higher quality of craftmanship
b. Lower labor costs
c. Decreased transportation costs
d. Effective legal systems
3. Which of the following correctly summarizes the accounting equation for a sole proprietorship?
a. Assets = Liabilities + Owners’ equity
b. Liabilities = Assets + Owners’ equity
c. Owner’s equity = Assets + Liabilities
d. Revenue = Assets – Liabilities
4. In order to present a business plan to a group of potential investors, a businessperson would most likely use which software?
5. In order to start an online business, and individual would need all but which of the following:
a. A business model
b. A website
c. An email address
d. A fax machine
6. Which of the following types of assets would not be subject to depreciation?
a. Heavy equipment
c. Real estate
d. Company vehicles
7. When itemizing deductions on a federal tax return, an individual taxpayer may be able to deduct all but which of the following?
a. Interest paid on a mortgage
b. Charitable donations
c. Losses from theft
8. Which of the following terms best describes a situation where an individual enters into an agreement with a company to use the company’s business model within a given territory, usually in exchange for a fee?
a. Sole proprietorship
b. Limited liability corporation
9. The par value of a bond is the:
a. Average interest rate paid by a given type of bond over subsequent issues
b. Amount of time until the bond matures
c. Amount paid when the bond matures
d. Amount of interest that the bond pays
10. Which of the following best describes Congress’ purpose in setting up Freddie Mac in 1970?
a. Expanding opportunities for home ownership
b. Deregulating the credit market
c. Improving regulation of the Internet
d. Creating a place for small business to get loans