Study Guide
Field 040: Business Education
Test Design and Framework
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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
*Does not include 15-minute C B T tutorial
Test Framework
| subareas | range of competencies | approximate percentage of test | |
|---|---|---|---|
| selected-response | |||
| roman numeral 1 | business management | 0001–0005 | 10 percent |
| roman numeral 2 | accounting | 0006–0009 | 17 percent |
| roman numeral 3 | marketing, customer service, and entrepreneurship | 0010–0013 | 17 percent |
| roman numeral 4 | business technology and information systems | 0014–0018 | 24 percent |
| roman numeral 5 | economics and finance | 0019–0022 | 17 percent |
| this cell intentionally left blank. | 85 percent | ||
| subareas | range of competencies | approximate percentage of test | |
|---|---|---|---|
| constructed-response | |||
| roman numeral 1 | business management | 0001–0005 | 15 percent |
Subarea roman numeral 1–Business Management
Competency 0001–Understand the functions of business management in contemporary and historical contexts.
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- Analyze the role of management in business.
- Recognize principles and procedures related to planning, controlling, organizing, staffing, and directing.
- Apply management principles and procedures to meet specified organizational goals and solve business problems related to innovation and change.
- Recognize major trends and developments in the history of business.
- Analyze factors related to conducting business in international markets (e.g., geography, time zones, language, culture).
Competency 0002–Understand organizational, group, and individual behaviors and their relationship to business management.
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- Demonstrate knowledge of social and behavioral theories and principles in relation to the functioning of organizations (e.g., corporate culture, change theory, quality-improvement initiatives, formal and informal organization, project-based management techniques).
- Apply knowledge of social and behavioral theories and principles to analyze group structures (e.g., team skills, group dynamics, work groups, motivation and leadership styles).
- Analyze issues related to organizational, group, and individual behavior in management situations (e.g., strategies for conflict resolution, factors contributing to worker morale and motivation).
Competency 0003–Understand human resource management and development.
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- Examine the role of human resource management within an organization.
- Recognize the methods and importance of training and staff development (e.g., continuing education, diversity training).
- Demonstrate a basic understanding of legal issues related to human resource management (e.g., Equal Employment Opportunity Commission regulations, Americans with Disabilities Act).
- Analyze the effects of business decisions related to personnel (e.g., restructuring).
Competency 0004–Understand issues related to ethical and social responsibility in business.
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- Analyze business situations that involve ethical considerations (e.g., conflict of interest, worker privacy, use of technology, environmental impact).
- Analyze factors affecting ethical decisions in given business situations, including international situations.
- Recognize the function of public relations and social responsibility in business and analyze factors affecting decisions in these areas in given business situations.
Competency 0005–Understand principles of business law and the legal environment of business.
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- Demonstrate knowledge of laws relating to the acquisition, ownership, and disposition of businesses.
- Apply knowledge of employment laws and regulations (e.g., working conditions, insurance requirements, wage regulations, employee contracts) in given business situations.
- Demonstrate knowledge of consumer and environmental laws and regulations.
- Analyze the roles of the U S and international legal systems in business regulation (e.g., regulatory agencies, Uniform Commercial Code, antitrust laws, tariffs).
Subarea roman numeral 2–Accounting
Competency 0006–Understand basic principles and applications of accounting.
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- Recognize the importance and the major purposes of accounting procedures in a business environment.
- Apply the accounting equation in given business situations.
- Demonstrate an understanding of the accounting cycle.
- Analyze the functions of accounting documents.
- Evaluate the use of accounting software.
Competency 0007–Apply procedures for processing accounting data.
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- Recognize the relationships among the components of the accounting cycle.
- Apply procedures for journalizing and posting transactions.
- Apply procedures for adjusting and closing entries.
- Apply automated methods for the preparation of reconciliations, financial statements, and trial balances.
- Recognize the importance of applying the accounting cycle in an automated system.
Competency 0008–Understand accounting concepts and procedures.
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- Recognize the importance of financial ratios (e.g., profit margin, return on assets, current ratio).
- Apply concepts related to partnership and corporation accounting.
- Apply procedures related to inventory, payroll, depreciation, disposal of assets, and intangible assets.
Competency 0009–Understand principles, processes, and procedures related to financial statements.
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- Demonstrate an understanding of the types and characteristics of financial statements.
- Analyze the use of financial statements in decision-making processes.
- Apply procedures for interpreting ratios.
- Analyze the use of financial statements in preparing and evaluating budgets.
Subarea roman numeral 3–Marketing, Customer Service, and Entrepreneurship
Competency 0010–Analyze factors affecting business marketing decisions.
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- Analyze social, cultural, and economic factors affecting marketing decisions (e.g., market demographics, local economic situation, interpreting graphs).
- Analyze procedures for collecting and interpreting marketing data.
- Use data to make marketing decisions in given situations (e.g., product pricing, promotion, distribution).
- Analyze factors likely to influence the success of a given marketing effort (e.g., market targets, market segmentation).
- Demonstrate knowledge of public relations as a promotional strategy.
Competency 0011–Understand principles and procedures related to customer service.
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- Demonstrate an understanding of the importance of customer satisfaction and factors that influence customer satisfaction.
- Analyze the effects of procedures and policies on customer relations.
- Apply procedures for dealing with the public, handling customer complaints, and assessing customer service.
Competency 0012–Understand principles and procedures related to entrepreneurship.
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- Recognize characteristics of entrepreneurs and examine the advantages and disadvantages of business ownership.
- Analyze the development and use of a business plan.
- Analyze factors, procedures, and issues in starting up a business (e.g., market analysis, risk taking, financing, insurance, cash flow, taxes).
- Demonstrate an understanding of issues and procedures in buying and operating a franchise.
Competency 0013–Understand principles and procedures related to career development.
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- Identify types of business careers, sources of career-related information, and procedures for career planning.
- Apply knowledge of procedures for constructing a résumé, writing a letter of application, preparing for an interview, and assembling employment credentials (e.g., portfolios).
- Demonstrate an understanding of employee rights and responsibilities in the workplace (e.g., punctuality, ethical conduct).
- Recognize the significance of state and federal agencies (e.g., E E O C ), laws (e.g., the Americans with Disabilities Act, the Civil Rights Act of 1964), regulations, and policies that affect employment.
Subarea roman numeral 4–Business Technology and Information Systems
Competency 0014–Understand business communications.
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- Understand elements of effective communication, including elements related to listening and nonverbal communication.
- Demonstrate knowledge of how to prepare various types of business communications, present different kinds of written and oral messages (e.g., good news, bad news, directive, persuasive), and prepare and deliver oral presentations and reports.
- Apply strategies for communicating in varied electronic media (e.g., telephone, voice mail, e-mail, faxes).
- Apply strategies for ensuring that communications are effective and free of bias.
Competency 0015–Understand basic principles and terminology related to computer technology.
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- Apply knowledge of terminology related to computer technology.
- Demonstrate a knowledge of characteristics, types, and features of computer hardware, software, and peripherals.
- Recognize features of and relationships among computer input devices, output devices, processing units, network systems, and storage units.
- Apply procedures for selecting, operating, and maintaining computer hardware, software, and peripherals.
Competency 0016–Understand principles and procedures related to information management and information systems.
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- Demonstrate knowledge of software applications (e.g., word processing, database management, simulations, spreadsheet, presentation software) and their uses in varied business contexts.
- Recognize characteristics and uses of multimedia systems and desktop publishing applications.
- Examine factors involved in linking software applications.
Competency 0017–Understand principles and procedures related to telecommunications and applications of telecommunications in business.
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- Demonstrate an understanding of types and functions of telecommunications systems.
- Apply knowledge of terms related to telecommunications (e.g., satellites, wide area network, ground stations, Internet, download, uplink, cell, relay, modem).
- Analyze business situations and problems to determine appropriate telecommunications solutions (e.g., teleconferencing, online services, electronic mail, telecommuting).
- Demonstrate an understanding of business operations using the World Wide Web (e.g., Web page design, HTML authoring, data integration).
Competency 0018–Understand principles and procedures related to ethics, security, and data integrity in technology systems.
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- Apply procedures related to information security (e.g., passwords, voice imprinting, virus checking, user rights).
- Recognize issues related to electronic privacy, the gathering and sharing of information, and generating, maintaining, and selling data files.
- Apply procedures for recovering data and ensuring the accuracy and integrity of electronic data.
- Recognize issues related to ownership of software and ideas (e.g., intellectual properties, copyrights, software piracy).
Subarea roman numeral 5–Economics and Finance
Competency 0019–Understand basic principles and applications of macroeconomics.
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- Analyze the role of government in the U S economy and factors that affect the economy and economic growth.
- Demonstrate knowledge of U S and international banking institutions and recognize basic principles of international trade and finance.
- Apply basic principles of monetary and fiscal policy.
- Demonstrate an understanding of the business cycle and methods of measuring domestic output, unemployment, and inflation.
Competency 0020–Understand basic principles and applications of microeconomics.
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- Identify and apply the principles of capitalism and analyze basic characteristics of economic systems.
- Analyze factors and processes related to the economics of the firm (e.g., law of diminishing returns, production costs, competition, efficiency, profit maximization).
- Apply knowledge of principles related to supply and demand, labor markets, and marginal revenue/cost analysis.
- Analyze factors that affect international trade and economics (e.g., trade barriers, trade agreements, monetary exchange rates).
Competency 0021–Apply basic principles of consumer economics and finance.
start italics The following topics are examples of content that may be covered under this competency. end italics
- Identify types and analyze characteristics of investment, savings, and retirement options.
- Demonstrate knowledge of personal financial management (e.g., loans, credit management, budgeting, installment plans).
- Demonstrate knowledge of risk management, including types of insurance policies.
- Analyze legal and practical issues related to consumerism (e.g., consumer rights, comparison shopping).
Competency 0022–Apply basic techniques of quantitative analysis in business situations.
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- Apply procedures for creating and interpreting charts and graphs.
- Apply procedures for estimating and forecasting.
- Apply procedures for using quantitative techniques (e.g., sampling) in business situations.
- Apply procedures for reporting and interpreting quantitative aspects of case studies.