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Full-Length Practice Exam · Section I

AP Business with Personal Finance Practice Exam

🎯 AP Exam LevelBuilt to match the real exam's format, timing, and difficulty.

A complete Section I: 60 multiple-choice questions in 17 business and personal finance case sets, timed at 70 minutes like the real exam. When you finish, you get a score, an estimated AP score, a breakdown by unit, and an explanation for every answer choice.

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Before you start

60multiple-choice questions
70 minabout 70 seconds per question
17 cases3 or 4 questions each
Units 1–4Unit 5 isn't on the AP Exam
~20%personal finance questions
60%of your AP score comes from Section I

⏱ Timed exam

A 70-minute timer and no feedback until you submit, just like exam day. You can mark questions for review and jump between them.

📚 Study mode

No timer. As soon as you pick an answer, you see whether it's right and why each choice is right or wrong.

Your answers save on this device, so you can stop and finish later. In timed mode, the clock only runs while this page is open.

What's on this practice exam

Questions per unit follow the weightings in College Board's course framework.

UnitQuestionsTopics in this exam
Unit 1
Businesses, Competition, and New Ideas		14Business organization, SWOT analysis, PESTEL, Competitive advantage, Hypothesis testing, Target customers, Risk of bringing products to market
Unit 2
Marketing		14Pricing strategies, Per-unit profit, Pricing evidence, Price and competition, Product life cycle, Consumer trends, Product life cycle strategy
Unit 3A
Personal Saving and Borrowing		10Budgeting, Needs and wants, Saving strategies, Financial goals, Credit scores, Credit and borrowing costs, Cost of borrowing
Unit 3B
Business Finance and Accounting		11Fixed and variable costs, Break-even analysis, Profit, Financial ratios, Profit margin, Evaluating financial health, Profit versus cash flow
Unit 4
Management and Strategy		11Motivating employees, Management and leadership, Retirement savings, Income and pay, Key performance indicators, Interpreting KPIs, Data visualization
Timed 70:00

Answered 0 of 60

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Ready? Choose a mode to start. You can read the cases below either way.

Questions 1–4 refer to the following information.

Case 1: Volt Sisters Electric

Volt Sisters Electric is a partnership owned by sisters Rosa and Lena Ortiz. Rosa is a master electrician with 12 years of experience rewiring older homes, and the business has built a reputation for same-day repairs in the city's historic neighborhoods. Lena schedules jobs, handles billing, and runs the company's social media accounts. Last year, the partnership took out a $40,000 bank loan to buy two service vans.

A regional homebuilder has invited several electricians, including Volt Sisters, to bid on wiring 30 new homes, each with rooftop solar panels. The contract would nearly double Volt Sisters' annual revenue but would require hiring four electricians. Rosa has never installed solar systems, and Lena worries that the business could not repay the van loan if the project ran over budget.

Volt Sisters Electric Revenue Last Year
ServiceRevenue
Repairs in historic homes$310,000
Electrical panel upgrades$90,000
New-home construction$0

1. Which of the following best describes a risk Rosa and Lena face because Volt Sisters is organized as a partnership?

2. A SWOT analysis of Volt Sisters' decision to bid on the homebuilder contract would most likely identify which of the following?

3. Which of the following PESTEL changes would most likely increase the viability of the homebuilder contract for Volt Sisters?

4. Which of the following pieces of evidence would best support the conclusion that Volt Sisters has a competitive advantage in its current market?

Questions 5–8 refer to the following information.

Case 2: Nova Audio AirShield

Nova Audio is launching AirShield, wireless earbuds with a feature no competitor offers: noise canceling that adjusts automatically to the user's surroundings. Producing and shipping each pair costs Nova $40.

Nova plans to price AirShield at $189 for the first six months, when it expects technology enthusiasts to buy, and then lower the price to $129 when competitors are expected to release earbuds with similar features. Prices of competing earbuds are shown in the table.

Prices of Leading Competitor Earbuds
BrandPriceAutomatic noise canceling?
SoundBud$99No
Pulse Pro$149No
EchoLite$59No

5. Nova's plan to start at $189 and lower the price later is an example of which pricing strategy?

6. What will Nova's per-unit profit on AirShield be after it lowers the price to $129?

7. Which of the following pieces of evidence would best support Nova's decision to launch AirShield at $189?

8. Which of the following best explains why Nova plans to lower AirShield's price after six months?

Questions 9–12 refer to the following information.

Case 3: The Okafor Family Budget

The Okafor family brings home $6,000 per month after taxes. The figure shows how they currently use that money. The family wants to build savings faster to help pay for their children's college costs.

Okafor Family Monthly Spending (Take-Home Pay: $6,000)
32%15%14%12%10%8%Housing: 32%Transportation: 15%Food: 14%Entertainment and dining out: 12%Debt payments: 10%Utilities and phone: 8%Other: 5%Savings: 4%
Okafor Family Monthly Spending (Take-Home Pay: $6,000)
32%15%14%12%10%8%Housing: 32%Transportation: 15%Food: 14%Entertainment and dining out: 12%Debt payments: 10%Utilities and phone: 8%Other: 5%Savings: 4%

9. How much does the Okafor family spend on entertainment and dining out each month?

10. Which of the following spending categories in the figure is most likely a want rather than a need?

11. The family wants to raise savings from 4% to 10% of take-home pay. Which change would accomplish this by itself?

12. Which of the following is the best example of a SMART savings goal for the Okafor family?

Questions 13–15 refer to the following information.

Case 4: PitStop Pet Wash

Owen Brooks noticed that dog owners at his local park often complained that bathing a large dog at home made a mess and clogged their drains. He built a coin-operated, self-service dog-wash station as a minimum viable product (MVP) and placed one at each of three locations for eight weeks.

His hypothesis was: “Dog owners will use a self-service dog wash at least 50 times per week at a location near a dog park.” The figure shows the average number of washes per week at each location.

Average Dog Washes per Week (8-week test)
02040608010062Gas station nextto a dog park41Car wash18Grocery storeparking lotWashes per week
Average Dog Washes per Week (8-week test)
02040608010062Gas stationnext to adog park41Car wash18Grocerystoreparking lotWashes per week

13. Which of the following conclusions about Owen's hypothesis is supported by the data in the figure?

14. Based on the results, which of the following target customer profiles should Owen focus on?

15. Owen plans to borrow money to open stations at 20 new locations. Which of the following is a financial risk of this decision?

Questions 16–19 refer to the following information.

Case 5: Taco Trek Food Truck

Taco Trek is a food truck that sells meals for $10 each. Its monthly costs are shown in the table.

Taco Trek Monthly Costs
CostAmount
Truck loan payment$1,800 per month
Insurance$600 per month
Permits and kitchen rental$600 per month
Ingredients$3.20 per meal
Packaging$0.40 per meal
Card processing fees$0.40 per meal

16. Which of the following correctly classifies two of Taco Trek's costs?

17. How many meals must Taco Trek sell each month to break even?

18. If ingredient costs increase by $1.00 per meal and Taco Trek keeps its price at $10, what happens to its break-even point?

19. If Taco Trek sells 800 meals in a month, what is its profit?

Questions 20–23 refer to the following information.

Case 6: Northline Logistics Job Posting

Northline Logistics, a regional shipping company, posted the job description shown in the figure.

Job Posting: Warehouse Team Lead (Night Shift)

About us: Northline Logistics delivers packages for online retailers across the Midwest. Our mission is to deliver every package accurately and on time.

Responsibilities:

  • Lead a team of 12 warehouse associates
  • Set daily packing targets and track each team member's accuracy
  • Train new hires on safety procedures
  • Report equipment and safety issues to the operations manager

Qualifications: At least one year of experience leading a team; forklift certification preferred

Pay and benefits:

  • $24.00 per hour, plus a $1.50 per hour premium for night shifts
  • Quarterly bonus when the team's packing accuracy is above 99%
  • 401(k) retirement plan with a 4% employer match
  • Health insurance
  • Tuition reimbursement of up to $3,000 per year

20. Which of the following incentives in the job posting is most directly tied to team performance?

21. Based on the job description, which leadership skill is Northline most seeking in a team lead?

22. Which of the following benefits would most help an employee save for retirement?

23. A team lead works 40 night-shift hours in a week. What is the team lead's gross pay for the week, before any bonus?

Questions 24–27 refer to the following information.

Case 7: SnapPro Compact Cameras

SnapPro has made compact digital cameras for 15 years. In recent years, smartphone cameras have improved so much that most people now take photos with their phones. The figure shows SnapPro's unit sales over the past five years.

SnapPro Compact Camera Unit Sales (in thousands)
04080120160200120Year 1135Year 2110Year 380Year 452Year 5Thousands of units
SnapPro Compact Camera Unit Sales (in thousands)
04080120160200120Year 1135Year 2110Year 380Year 452Year 5Thousands of units

24. Which stage of the product life cycle best describes SnapPro's cameras in Years 3 through 5?

25. Which of the following most likely caused the trend shown in the figure?

26. Which of the following strategies best fits a product in the stage identified for SnapPro's cameras?

27. By approximately what percentage did SnapPro's unit sales fall from Year 4 to Year 5?

Questions 28–30 refer to the following information.

Case 8: Jordan and Priya's Credit

Jordan and Priya are both applying for a $20,000 car loan. A summary of their credit reports is shown in the table.

Credit Report Summary
Credit factorJordanPriya
Late payments in the past year20
Credit used (percentage of available credit)85%15%
Length of credit history6 years2 years
Applications for new credit in the past 6 months14

28. Which of the following actions would most likely raise Jordan's credit score the fastest?

29. Which of the following outcomes is most likely when Jordan and Priya apply for the car loan?

30. Suppose one of them is offered a five-year loan at 9% interest and the other is offered a five-year loan at 5% interest. Which of the following statements is true?

Questions 31–34 refer to the following information.

Case 9: Trail Flask Water Bottles

Trail Flask designs insulated water bottles in Denver and sells them online and through outdoor retailers. Its supply chain is summarized in the table. This spring, a backlog at the port of Los Angeles delayed shipments by six weeks, and Trail Flask ran out of its best-selling color for a month.

Trail Flask's Supply Chain
StageWhat happensLocationTypical time
1Steel is producedSouth Korea2 weeks
2Bottles are manufacturedVietnam3 weeks
3Bottles are shipped by ocean freightVietnam to Los Angeles4 weeks
4Bottles are trucked to Trail Flask's warehouse and then to retailersLos Angeles to Denver, then to stores1 week

31. Which stage in the table is part of the distribution step of Trail Flask's supply chain?

32. Which of the following strategies would most reduce the risk of another stockout caused by shipping delays?

33. Trail Flask is considering a U.S. manufacturer that would cost $3 more per bottle but could deliver bottles in one week. Which of the following best describes the main trade-off?

34. If Trail Flask's competitive advantage is its reputation as an environmentally responsible brand, which supply chain choice best supports that strategy?

Questions 35–38 refer to the following information.

Case 10: Riverbend Fitness

Riverbend Fitness tracks membership each month to monitor the health of its business. The table shows data for the first three months of the year. The gym calculates its monthly cancellation rate by dividing the number of members who canceled by the number of members at the start of the month.

Riverbend Fitness Membership Data
MonthMembers at start of monthNew membersMembers who canceledMembers at end of month
January1,00080501,030
February1,03060521,038
March1,038901041,024

35. What was Riverbend's approximate cancellation rate in March?

36. Which of the following conclusions is supported by the data?

37. Which data visualization would best help managers see how the monthly cancellation rate changes over time?

38. Which of the following is the best example of a SMART goal for Riverbend's managers?

Questions 39–41 refer to the following information.

Case 11: Moss & Mortar Plant Shop

Moss & Mortar, an online plant shop, ran three advertising campaigns last month to attract new customers. Each campaign sent shoppers to the shop's website, where some of them made a purchase. The results are shown in the table.

Moss & Mortar Campaign Results (Last Month)
CampaignAd spendingClicks to websitePurchases
Social media video ads$1,2004,00080
Search engine ads$9001,50090
Influencer post$1,5006,00060

39. Which campaign had the lowest advertising cost per purchase?

40. Which of the following conclusions is supported by the data in the table?

41. Which of the following measures would best help Moss & Mortar determine which campaign attracted the customers who will bring in the most revenue over time?

Questions 42–45 refer to the following information.

Case 12: Comparing Two Hardware Stores

A lender is comparing two hardware store chains that have each applied for a loan. Selected data from their most recent financial statements are shown in the table.

Selected Financial Data (in thousands of dollars)
Company ACompany B
Current assets$120$90
Current liabilities$60$90
Total debt$200$450
Owner's equity$400$300
Revenue$900$1,200
Net income$72$60

42. What is Company A's current ratio?

43. Which of the following conclusions is supported by the data?

44. Which statement about profitability is supported by the data?

45. Which company would a lender most likely view as the lower-risk borrower, and why?

Questions 46–48 refer to the following information.

Case 13: Brightway Toys

Brightway Toys' quality inspector, Ana, discovered that the wheels on 20,000 of its new toy trucks can snap off, creating a choking hazard for toddlers. The trucks are labeled “Ages 2+,” and 12,000 have already been sold.

A voluntary recall would cost about $300,000. The vice president of sales suggested changing future packaging to “Ages 4+” and quietly selling the remaining 8,000 trucks. Brightway's code of conduct states that “child safety comes before profit” and protects employees who report safety concerns from punishment.

46. Which of the following responses best reflects Brightway's code of conduct?

47. If the vice president's plan were followed, which stakeholder group would face the most serious harm?

48. Which of the following best explains how a recall could benefit Brightway in the long run despite its $300,000 cost?

Questions 49–51 refer to the following information.

Case 14: Ava and Ben Start Saving

Ava and Ben each invest in an account that earns an average return of 7% per year. Ava invests $2,000 at the start of each year from age 25 through age 34 and then stops adding money. Ben waits and invests $2,000 at the start of each year from age 35 through age 64. Neither withdraws any money before age 65. The results are shown in the table.

Ava and Ben's Retirement Savings at Age 65 (7% average annual return)
AvaBen
Years of contributions10 (ages 25–34)30 (ages 35–64)
Total amount contributed$20,000$60,000
Account value at age 65$225,073$202,146

49. Which of the following conclusions is supported by the data in the table?

50. Which of the following best explains the outcome shown in the table?

51. A 25-year-old says, “I'll start saving for retirement once I earn more money.” Based on the table, which is the strongest response?

Questions 52–54 refer to the following information.

Case 15: Glow Grove Protein Bars

Glow Grove makes plant-based protein bars sweetened with dates and sells them for $3.00 each. To decide which customers to target first, the marketing team surveyed 600 shoppers at grocery stores and gyms. The results by customer group are shown in the table.

Glow Grove Survey Results by Customer Group
Customer groupBought a protein bar last monthSay natural ingredients are very importantAverage price willing to pay
Gym members, ages 18–3472%48%$2.75
Parents buying school snacks41%77%$2.10
Office workers, ages 35–5438%52%$2.40
Endurance athletes85%69%$3.25

52. Based on the data, which customer group is the strongest fit for Glow Grove's first target market?

53. Glow Grove wants to segment its market using a psychographic characteristic. Which of the following segments would that approach produce?

54. Which of the following conclusions is supported by the data in the table?

Questions 55–57 refer to the following information.

Case 16: Frosty Bites Ice Cream

Frosty Bites is an ice cream shop in a northern city. Its sales are low in winter and high in summer. The owner prepared the cash flow forecast in the table, starting the year with $8,000 in cash.

Frosty Bites Cash Flow Forecast
MonthCash coming inCash going outEnding cash balance
January$6,000$9,000$5,000
February$5,000$9,000$1,000
March$7,000$10,000($2,000)
April$15,000$11,000$2,000
May$24,000$13,000$13,000
June$30,000$15,000$28,000

55. Which of the following best explains how Frosty Bites could earn a profit for the year but still run short of cash?

56. Which financing option best fits the problem shown in the forecast?

57. What is Frosty Bites' total net cash flow from January through June?

Questions 58–60 refer to the following information.

Case 17: Maple Street Diner

Maple Street Diner, whose owners describe it as “the neighborhood's gathering place,” is considering two options for growth. The owners work at the diner every day. Their projections are shown in the table.

Maple Street Diner Growth Options
Option A: Open a second locationOption B: Add online ordering and a delivery van
One-time investment$250,000$40,000
Projected additional profit per year$50,000$12,000
Staffing needsHire a full-time manager and 12 staffHire 2 delivery drivers

58. Using annual ROI as the criterion, which statement is accurate?

59. Which risk is greater for Option A than for Option B?

60. Which of the following pieces of evidence would best support choosing Option B?

That's the end of Section I. Check any questions you marked for review, then submit.

How this practice exam matches the real AP exam

On the AP Business with Personal Finance Exam, Section I is 60 multiple-choice questions in 70 minutes and counts for 60% of your score. Every question is part of a set: you read a short case about a business or a person's finances, often with a table, chart, financial statement, or job posting, and then answer three or four questions about it. The questions ask you to apply concepts, interpret data, calculate, and evaluate choices, not just recall definitions.

This practice exam follows that design. It has 17 case sets covering Units 1 through 4, with each unit's share of questions inside the ranges in College Board's course framework, and about a fifth of the questions on personal finance. You'll see income statements, break-even calculations, credit reports, budgets, marketing data, and key performance indicators, the same kinds of material the real exam uses. Read more about the format in our AP Business exam guide.

How to use your results

Frequently asked questions

Is this practice exam like the real AP Business with Personal Finance exam?

Yes. Section I of the real exam has 60 multiple-choice questions in 70 minutes, and every question belongs to a set of three or four questions about a shared business or personal finance case with tables, charts, or documents. This practice exam uses the same format, covers Units 1 through 4 with similar weighting, and includes about 20% personal finance questions.

How is the practice exam scored?

You earn one point for each correct answer and lose nothing for a wrong answer, so answer every question. Your percentage is converted to an estimated AP score from 1 to 5. Because the real exam also has four free-response questions worth 40% of your score, use the score calculator to combine this result with an FRQ estimate.

How long does the practice exam take?

The timed mode gives you 70 minutes, the same as Section I of the real exam. That is about 70 seconds per question, including reading time for each case. Study mode has no timer.

Can I stop and finish later?

Yes. Your answers, flags, and remaining time are saved on this device, so you can close the page and pick up where you left off. The timer only runs while the exam is open, which makes it easy to split across two class periods.

Is Unit 5 on the exam?

No. College Board does not assess Unit 5 (Personal Goals, Budgeting, and Investing) on the AP Exam, so this practice exam covers Units 1 through 4 only.

What should I study after taking this practice exam?

Start with the unit where you scored lowest in your results. Each unit in the score breakdown links to its review page. Then practice the free-response section, which is 40% of your score.

Keep studying

FRQ PracticeSection II: all four free-response types Score CalculatorCombine multiple choice and FRQ Practice Question Bank300+ questions, new sets every time Unit ReviewsStudy guides for Units 1–5 FRQ Model AnswersWorked, annotated examples Exam GuideFormat, timing, and scoring

These are original practice questions written to match the published course framework. They are not actual AP Exam questions, and estimated scores are approximate because College Board hasn't released a score conversion for this new exam.