CSET Business Test

The CSET Business test has three subtests. The first subtest has 20 multiple-choice questions on business management and 20 multiple-choice questions dealing with marketing. This section has 2 constructed-response questions. The second subtest has 25 multiple-choice questions on accounting and finance, and 15 multiple-choice questions on economics. This section has 2 constructed-response questions. The final subtest has 25 multiple-choice questions on information technology; it has 15 multiple-choice questions about the business environment and communication. This section also has 2 short- answer constructed-response questions.

The first CSET Business exam subtest covers five management functions, planning and problem solving within a business environment, and the functions of business. The candidate must understand leadership theories and styles, and how to use creative management to solve disputes among employees in a business context. The candidate must apply a business code of ethics and discuss the relationship between business law and ethical guidelines. This section also covers marketing techniques, sales, and advertising.

The second CSET Business exam subtest covers accounting, principles of finance, and personal finance. It also has sections on economic concepts, microeconomics, macroeconomics, and international economics. The candidate must demonstrate knowledge of accounting theory, and how to use accounting principles to keep track of accounts, financial performance, and tax liabilities. In the finance section, the candidate must understand financial analysis and the terms of art associated with finance. The candidate must be prepared to interpret the financial status of a business given raw accounting data, and must be able to explain the concepts of personal finance issues such as budgeting, investing, and retirement planning. The economics portion also tests terminology and the ability to interpret raw data.

The third CSET Business test subtest covers computer technology, information and media systems, ethics, security, data integrity, network communications, and programming. There is also a section covering entrepreneurship, business communications, career development, and international business. Candidates should be aware of the latest technology for maintaining privacy and security of business secrets and finances as well as protecting the financial information of the business’ clients. The candidate should be able to demonstrate a knowledge of the steps to setting up a successful business, including designing a business plan, marketing plan, and budget. Finally, the test covers the candidate’s understanding of the opportunities of international business as well as ethical, social, and political implications of engaging in business in countries with potentially conflicting laws.

CSET Business Test Practice Question

1. According to which personal finance concept does the value of money change over time?
A) Time value of money
B) Investing
C) Risk
D) Interest rate

2. What are the five Ps of marketing?
A) Problem, profile, progression, preparation, positioning
B) Pressure, power, proficiency, perseverance, profit
C) Props, parade, plateau, procedure, population
D) Product, price, promotion, place, people

3. Which of the following statements about scarcity is true?
A) Scarcity is mostly for poor people.
B) Scarcity means you must make a permanent choice.
C) Scarcity happens because resources have more than one use.
D) Scarcity has to be dealt with by individuals, not governments.

4. Which of the following market structures describes an industry in which there are only a few big firms that sell the same products, and it is very hard and costly to open a new firm?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly

5. The Robinson-Patman Act applies to:
A) insurance
B) commodities
C) photo processing
D) electricity

CSET Business Test Answers

1. Answer: A
Time value of money is the concept that the value of money changes over time because it has the potential to grow through investment. Answer choice B, investing, is related, but it is not the concept described in the question.

2. Answer: D
The five Ps of marketing are product, price, promotion, place (or distribution), and people.

3. Answer: C
Scarcity occurs when all of the goods and services that are desired are not obtainable. When a limited resource has more than one use, a choice has to be made regarding what it will be used for and what will be left out. Answers A and D are incorrect because everyone experiences scarcity, including governments. Answer B is incorrect because the choice is not permanent.

4. Answer: C
The industry described is an oligopoly. An example is major movie studios. Generally in oligopolies, the firms are interdependent and have rigid prices without much price competition. Other behaviors common to oligopolies are mergers and collusion. Answer choices A, B, and D are other types of market structures.

5. Answer: B
The Robinson-Patman Act only applies to the sales of commodities or tangible goods. Answer choices A and D may have varied pricing, and they can be bought and sold, but they are services. Answer choice C, photo processing, includes both a service and tangible goods, but because service has been determined as the main feature the Robinson-Patman Act does not apply. The main feature of the product has to be a commodity.