Study Guide
Business
Test Design and Framework
The test design below describes general assessment information. The framework that follows is a detailed outline that explains the knowledge and skills that this test measures.
Test Design
| Format | Computer-based test (CBT) and online-proctored test |
|---|---|
| Number of Questions | 100 multiple-choice questions |
| Time* | 2 hours |
| Passing Score | 220 |
*Does not include 15-minute tutorial
Test Framework
| Content Domain | Range of Competencies | Approximate Percentage of Test Score | |
|---|---|---|---|
| I. | Business Management, Law, and Ethics | 0001–0003 | 20% |
| II. | Accounting, Personal Finance, and Quantitative Analysis | 0004–0006 | 20% |
| III. | Economics and International Business | 0007–0009 | 20% |
| IV. | Marketing, E-Commerce, and Entrepreneurship | 0010–0012 | 20% |
| V. | Business Communications, Technology, and Career Development | 0013–0015 | 20% |
Domain I–Business Management, Law, and Ethics
Competency 0001–Understand functions and methods of organizational management.
For example:
- Analyze theories of organizational management, management functions, and the roles of management in business organizations.
- Apply principles of financial management and financial decision making.
- Apply principles for managing change, making decisions, solving problems, and achieving innovations within business organizations.
- Apply strategies for managing business operations to enhance productivity, add value, and increase profitability.
- Compare types of organizational structures, including the advantages and disadvantages of each type.
Competency 0002–Understand principles of human resources management.
For example:
- Apply knowledge of procedures for staffing a business, including employee recruitment, selection, training, evaluation, and termination.
- Analyze individual behavior and group dynamics, factors that influence employee motivation, and strategies for conflict resolution.
- Apply strategies for managing employee compensation and benefits, retirement plans, and unemployment insurance.
- Analyze laws and policies related to human resources management, including those related to collective bargaining, family medical leave, and workplace safety.
Competency 0003–Understand business law and issues related to ethics and social responsibility.
For example:
- Apply knowledge of the structure and operation of the U.S. legal system, legal terminology, and principles of law relevant to the organization and operation of a business.
- Apply knowledge of laws and regulations, including the Uniform Commercial Code and other contract, property, tax, family, and estate planning laws.
- Apply knowledge of laws and regulations related to intellectual property and antitrust laws, and government agencies related to business operations and the regulation of competition.
- Apply knowledge of laws, regulations, and government agencies related to consumer protection, product testing and safety, and environmental protection.
- Examine issues related to ethics and social responsibility in business.
Domain II–Accounting, Personal Finance, and Quantitative Analysis
Competency 0004–Understand business accounting.
For example:
- Apply knowledge of basic terminology, principles, and methods of business accounting.
- Apply knowledge of the steps of the accounting cycle and the use of computerized software in accounting.
- Apply procedures for generating and interpreting financial statements, calculating and interpreting financial ratios, and managing cash flow.
- Apply methods and procedures used in payroll and inventory accounting.
- Apply Generally Accepted Accounting Principles (GAAP) methods and procedures used in management accounting and evaluation of the financial performance of organizations.
Competency 0005–Understand personal finance and principles of consumer economics.
For example:
- Apply principles of personal financial management and financial planning, including various investment and saving options.
- Analyze factors that affect the use of credit and strategies for personal credit management.
- Apply knowledge of strategies for personal risk management and the types of insurance products.
- Apply knowledge of consumer economics and factors that affect employment opportunities, cost of living, budgeting, and personal income.
Competency 0006–Understand techniques of computation and quantitative analysis in business.
For example:
- Apply computational skills involving integers, fractions, and percents to solve problems in business contexts.
- Interpret charts, tables, and graphs in various business contexts.
- Apply principles of measurement, expressions, and equations to model and solve business problems.
- Apply statistical principles and techniques in various business contexts.
Domain III–Economics and International Business
Competency 0007–Understand fundamental principles of microeconomics.
For example:
- Demonstrate knowledge of basic terminology, concepts, and theories of microeconomics.
- Apply concepts related to business economics, including opportunity costs, supply and demand, and the law of diminishing returns.
- Analyze principles and theories of competition and characteristics of different types of competitive systems.
- Analyze concepts related to the factors of production.
Competency 0008–Understand fundamental principles of macroeconomics.
For example:
- Demonstrate knowledge of basic terminology, concepts, and theories of macroeconomics.
- Analyze and compare different economic and political systems.
- Analyze macroeconomic factors that influence economic growth and the business cycle.
- Apply economic indicators to assess the state of an economy.
- Analyze government, monetary, and fiscal policy and how these policies affect the U.S. economy.
Competency 0009–Understand international business, marketing, and trade.
For example:
- Analyze major concepts, historical patterns, and current trends in international trade and business.
- Analyze factors that affect international trade, domestic production, and the economies of the United States and other nations.
- Examine the roles of trade agreements, international agencies, and international financial institutions in global commerce.
- Analyze organizational structures and forms of international businesses and how cultural, sociopolitical, and other factors affect business and marketing in other countries.
Domain IV–Marketing, E-Commerce, and Entrepreneurship
Competency 0010–Understand basic principles of marketing, marketing research, and product/service planning and placement.
For example:
- Apply marketing principles, including the four Ps of product, placement, price, and promotion.
- Apply strategies for conducting marketing research, collecting and interpreting marketing data, and developing a marketing plan.
- Analyze marketing strategies, factors affecting marketing decisions, and methods of evaluating markets and forecasting sales.
- Analyze the role of marketing in product/service design and development, the product life cycle, and strategies for determining the product mix.
- Apply principles and procedures related to product/service placement and distribution.
- Apply knowledge of consumer behavior and consumer decision making, the selling process, and strategies for increasing customer satisfaction.
Competency 0011–Understand principles and procedures related to e-commerce and Internet marketing.
For example:
- Demonstrate knowledge of types of e-commerce business models.
- Apply principles of marketing research, product/service planning and placement, and product distribution for Internet businesses.
- Apply knowledge of e-commerce marketing strategies, including the use of search engines, mobile technologies, and social media.
- Demonstrate knowledge of technical issues related to e-commerce, including Internet infrastructure, maintaining security, and payment systems.
- Analyze strategies and issues related to starting an Internet business and factors that influence the success or failure of Internet start-ups.
Competency 0012–Understand principles of entrepreneurship.
For example:
- Analyze the role of entrepreneurs in business, the characteristics of successful entrepreneurs, and the advantages and disadvantages of business ownership.
- Identify types of business ownership and the characteristics, advantages, and disadvantages of each type.
- Analyze factors, procedures, and issues related to starting a new business and developing a business plan for a new business.
Domain V–Business Communications, Technology, and Career Development
Competency 0013–Understand principles of business communication.
For example:
- Demonstrate knowledge of business terminology and effective communication skills in personal and professional situations.
- Demonstrate knowledge of techniques for producing clear, coherent writing in which the development, organization, and style are appropriate to business contexts.
- Examine strategies and technologies used for preparing and delivering presentations to diverse audiences.
- Demonstrate knowledge of using technology, including the Internet, to produce, publish, and update individual or shared business communications.
Competency 0014–Understand computer information systems in business.
For example:
- Demonstrate knowledge of the effect of information technology on business and society, including laws, ethics, and security.
- Demonstrate knowledge of characteristics of computers, mobile devices, computer networks, and business information systems.
- Apply knowledge of characteristics of productivity software, including word-processing, presentation, spreadsheet, desktop publishing, and database software.
- Apply knowledge of characteristics of interactive media and principles and tools for computer programming and Web design.
- Demonstrate knowledge of principles related to laws, ethics, and security in technology systems.
Competency 0015–Understand career development and professionalism.
For example:
- Identify career opportunities in business; sources of information about business careers; and personal interests, education, and experience needed for business careers.
- Apply knowledge of career-planning strategies and skills related to job search and job acquisition.
- Demonstrate knowledge of career, technical, student, and professional organizations related to business education (e.g., advisory committees, work-based learning programs).