Interactive FRQ Practice
Generate a random AP-style FRQ, type your response, then use the rubric and sample answer to self-score.
FRQ Menu
How to Earn Points on AP Business FRQs
The official sample questions reward specific, evidence-based answers. Short answers can earn full credit if they directly answer the prompt, use data from the scenario, and explain why the evidence matters.
Describe
State what is happening and include scenario evidence.
Explain
Connect the evidence to the goal, problem, opportunity, or decision.
Recommend
Choose a course of action and support it with specific criteria.
Use Data
Refer to numbers, percentages, costs, market share, assets, liabilities, or other details from the prompt.
FRQ 1 — Personal Finance
Modeled after the official personal finance FRQ structure: identify data, describe a challenge/opportunity, and explain an action.
Question 1: Personal Finance
Jordan is 24 years old and recently started a full-time job as an operations coordinator earning an annual salary of $62,000. Jordan has moved into an apartment, purchased furniture, and bought a used car. After paying planned monthly expenses, including rent, car payments, student loan payments, and utilities, Jordan has $640 left over each month.
Jordan wants to pay down debt, build emergency savings, and begin saving for retirement. Jordan’s employer offers a retirement plan. For every 1% of salary Jordan contributes, monthly net pay decreases by about $45, but retirement savings increase by about $95 because of tax benefits and the employer match.
| Assets | Value | Liabilities | Balance |
|---|---|---|---|
| Used Car | $19,000 | Car Loan | $16,500 |
| Savings Account | $1,800 | Student Loan | $29,000 |
| Furniture | $2,500 | Credit Card Debt | $4,700 |
| Total Assets | $23,300 | Total Liabilities | $50,200 |
Prompt
- Using data from the scenario, identify the difference between Jordan’s total assets and total liabilities.
- Describe one financial challenge or opportunity currently affecting Jordan’s ability to achieve financial goals.
- Explain how one specific action Jordan could take would help achieve one financial goal.
Show Sample High-Scoring Answer
A. Jordan’s total liabilities are $50,200 and total assets are $23,300, so liabilities are greater than assets by $26,900.
B. A financial challenge is that Jordan has a negative net worth and only $1,800 in savings. This makes it harder to handle an emergency while also paying off debt and saving for retirement.
C. Jordan could contribute 5% of salary to the employer retirement plan. This would reduce monthly net pay by about $225, but retirement savings would increase by about $475 per month because of the employer match and tax benefits. Jordan would still have about $415 left each month to build emergency savings or pay down credit card debt.
Uses correct data: $50,200 - $23,300 = $26,900.
Describes a real challenge using scenario evidence.
Explains a specific action and connects it to a goal.
FRQ 2 — Business Concept Application
Modeled after the official business concept application FRQ: identify research method, describe a finding, and explain how to use it.
Question 2: Business Concept Application
FreshFork is a regional grocery company that wants to launch a meal-kit delivery service. The market already includes several major competitors. FreshFork executives reviewed industry reports, competitor websites, customer review sites, and publicly available company data to compare pricing, features, and market share.
| Company | Market Share | Basic Plan Price | Main Differentiator |
|---|---|---|---|
| MealBox | 42% | $9.99/serving | Largest recipe library |
| QuickPlate | 26% | $8.99/serving | Fast 20-minute meals |
| GreenTable | 18% | $11.99/serving | Organic ingredients |
| FamilyPantry | 9% | $7.99/serving | Lowest price |
| ChefCrate | 5% | $13.99/serving | Premium chef-designed meals |
Prompt
- Describe one market research method FreshFork used to gather information.
- Describe one finding revealed by the research.
- Explain how FreshFork could use one finding from the research to achieve a business goal.
Show Sample High-Scoring Answer
A. FreshFork used secondary-source market research because executives gathered information from existing sources such as industry reports, competitor websites, customer review sites, and public company data.
B. One finding is that MealBox controls the largest market share at 42%, while FamilyPantry has the lowest price at $7.99 per serving.
C. FreshFork could use the pricing data to position its meal-kit service between FamilyPantry and MealBox, such as offering meals at $8.49 or $8.99 per serving. This could help FreshFork attract price-conscious customers while still competing with larger companies and gaining market share.
Identifies secondary research and names sources.
Describes a specific data-based finding.
Explains how a finding supports a business goal.
FRQ 3 — Business Decision
Modeled after the official 8-point business decision FRQ: analyze factors, compare alternatives, and recommend a course of action.
Question 3: Business Decision
Riverbend Bikes is a small bicycle manufacturer located in Benton, Colorado. The company makes premium mountain bikes and has built a loyal customer base. Sales have increased 18% this year, but Riverbend’s current facility is at capacity and cannot support expected future demand.
Riverbend is deciding between two expansion options. The Benton option would build a new facility 6 miles from the current location. The Summit City option would renovate a larger existing facility 50 miles away, closer to aluminum suppliers and shipping partners. A recent employee survey showed that 75% of employees would prefer to remain near Benton, while 25% would commute or relocate to Summit City.
| Criterion | Benton Option | Summit City Option |
|---|---|---|
| Facility Size | 22,000 sq. ft. | 30,000 sq. ft. |
| One-Time Cost | $1.8 million | $2.4 million |
| External Funding Needed | $1.1 million | $1.7 million |
| Projected Annual ROI | 18% | 24% |
| Projected Net Profit Increase | $620,000 | $870,000 |
| Transportation Cost Savings | $40,000/year | $210,000/year |
| Estimated Employees Retained | 90% | 25% |
Prompt
-
Factor Analysis
- Describe one internal, market, or external factor affecting Riverbend Bikes.
- Explain how that factor creates an opportunity or problem for Riverbend Bikes.
-
Compare Courses of Action
- Using projected annual ROI, describe a difference between the two options with evidence.
- Using one additional financial criterion, describe a difference between the two options with evidence.
- Using one nonfinancial criterion, describe a difference between the two options with evidence.
-
Recommendation
Recommend one option and support your recommendation using three specific criteria with evidence.
Show Sample High-Scoring Answer
A(i). One market factor affecting Riverbend Bikes is increasing demand, shown by the company’s 18% sales increase this year.
A(ii). This creates an opportunity because Riverbend can sell more bikes and increase revenue, but only if it expands production capacity beyond its current facility.
B(i). The Summit City option has a higher projected annual ROI of 24%, compared with 18% for the Benton option.
B(ii). Using projected net profit increase as a financial criterion, Summit City is stronger because it is expected to increase net profit by $870,000, compared with $620,000 for Benton.
B(iii). Using employee retention as a nonfinancial criterion, Benton is stronger because Riverbend expects to retain 90% of employees there, compared with only 25% in Summit City.
C. Riverbend Bikes should choose the Summit City option because it better supports long-term growth. First, Summit City has the higher projected annual ROI at 24% compared with 18% for Benton. Second, it has a larger projected net profit increase of $870,000 compared with $620,000 for Benton. Third, Summit City would save $210,000 per year in transportation costs because it is closer to suppliers and shipping partners, while Benton would save only $40,000 per year. Although employee retention is a concern, the financial and supply chain advantages make Summit City the stronger long-term option.
Identifies a factor and explains the opportunity/problem.
Compares ROI, another financial criterion, and a nonfinancial criterion using evidence.
Recommends one option and supports it with three criteria and scenario evidence.
Extra Practice FRQs
Use these shorter prompts for additional review or classroom practice.
Question 4: Personal Finance Mini-FRQ
Maya earns $54,000 per year and has $4,000 in savings, $3,200 in credit card debt, and $18,000 in student loans. Her employer offers a retirement match, but Maya is not contributing yet. She has $500 left over each month after planned expenses.
- Identify one financial challenge Maya faces.
- Describe one financial opportunity Maya has.
- Explain one specific action Maya should take and how it helps her achieve a goal.
Show Sample Answer
Maya’s challenge is that she has credit card debt and student loan debt while only having $4,000 in savings. An opportunity is that she has $500 left over each month and access to an employer retirement match. Maya should use part of the $500 to pay down the credit card debt first because it is likely high-interest debt, while also contributing enough to her retirement plan to receive the employer match.
Question 5: Marketing Research Mini-FRQ
EcoSip wants to sell reusable water bottles to high school and college students. The company surveys 300 students, reviews competitor prices online, and studies customer reviews for similar products.
- Identify one primary research method used by EcoSip.
- Identify one secondary research method used by EcoSip.
- Explain how EcoSip could use the research to improve its product or marketing strategy.
Show Sample Answer
EcoSip used primary research by surveying 300 students. It used secondary research by reviewing competitor prices and customer reviews online. EcoSip could use the survey results and reviews to identify features students care about, such as durability or color options, and then market the bottle around those features to better attract its target market.
Question 6: Business Decision Mini-FRQ
Peak Snacks is deciding between opening a second store downtown or expanding online delivery. The downtown store has higher startup costs but stronger walk-in traffic. Online delivery costs less to launch but faces more competition from national brands.
- Describe one market factor affecting Peak Snacks and explain how it creates an opportunity or problem.
- Compare the two options using one financial criterion and one nonfinancial criterion.
- Recommend one option and support the recommendation with three pieces of evidence or criteria.
Show Sample Answer
One market factor is competition from national online snack brands, which creates a problem for the delivery option because Peak Snacks may struggle to stand out. A financial criterion is startup cost: online delivery is cheaper to launch than a downtown store. A nonfinancial criterion is customer visibility: the downtown store has stronger walk-in traffic. I recommend opening the downtown store because it offers more visibility, allows customers to experience the brand in person, and avoids some of the intense online competition from national brands.
Teacher Tip
Have students answer each FRQ first without opening the sample answer. Then have them use the scoring notes to highlight the exact evidence that would earn points.