The DSST Introduction to Business exam measures knowledge typically taught in an introductory college business course. The exam covers business ownership and economics, major business functions, ethics, social responsibility, and the global business environment.
QUESTIONS
100
TIME LIMIT
2 Hours
MINIMUM SCORE
400
ACE CREDIT
3 Hours
What Is the DSST Introduction to Business Exam?
The DSST Introduction to Business exam is designed for students who already have knowledge equivalent to an introductory college business course and want an opportunity to earn college credit by examination.
The American Council on Education (ACE) recommends the exam for 3 semester hours of lower-level baccalaureate credit. However, individual colleges decide whether they accept DSST scores and how those credits apply toward a degree.
Before registering, confirm that your college accepts the DSST Introduction to Business exam and that the credit will satisfy the requirement you intend to replace.
What’s on the Introduction to Business Exam?
The current DSST blueprint divides the exam into three major content areas.
1. Foundations of Business — 30%
- Forms of business ownership
- Government intervention
- Economics of business
- Entrepreneurship
2. Functions of Business — 50%
- Management
- Marketing
- Finance
- Accounting
- Production and operations
- Management information systems
- Human resources
3. Business and Social Responsibility — 20%
- Business ethics and social responsibility
- Global business environment
Half of the exam comes from the Functions of Business domain, so management, marketing, finance, accounting, operations, information systems, and human resources deserve substantial attention in your study plan.
Question Format and Passing Score
The exam contains 100 multiple-choice questions that must be completed within 2 hours. Each question presents one correct answer and three incorrect options.
The current ACE credit recommendation lists a minimum score of 400 for the Introduction to Business exam.
Remember that earning a qualifying DSST score does not automatically guarantee college credit. Your institution determines whether it accepts the exam and where the credit applies.
Where Can You Take the Exam?
Prometric currently offers DSST testing through more than one delivery option. Depending on your circumstances, you may be able to test:
- Remotely using Prometric’s ProProctor system
- At a Prometric test center
- At an eligible National Test Center
Remote testing requires a compatible computer, camera, microphone, reliable internet connection, and an approved testing environment.
Military Funding
Eligible active-duty service members and certain other eligible examinees may receive DANTES funding for their first attempt at a DSST exam.
DANTES currently funds one attempt per exam title for eligible examinees. Retests are not funded.
Retest rules differ for DANTES-funded military testing. Prometric lists a 30-day general DSST retest period, while DANTES currently requires a three-month wait after a previously funded military attempt. Follow the policy that applies to your testing status.
How to Study for the Introduction to Business Exam
Start with the current DSST content outline rather than studying an introductory business textbook from beginning to end. Use the percentages to decide where to spend the most time.
Study Checklist
- Learn the advantages and disadvantages of major forms of business ownership.
- Review basic microeconomic and macroeconomic ideas that affect businesses.
- Know the major functions of management.
- Review marketing concepts such as segmentation, targeting, pricing, promotion, and distribution.
- Know fundamental accounting and finance terminology.
- Review production, operations, and information systems.
- Study recruiting, selection, training, compensation, and other human-resource functions.
- Understand business ethics, social responsibility, and stakeholder interests.
- Review tariffs, trade, exchange, and other concepts affecting global business.
DSST Introduction to Business Practice Questions
Use these questions to check your understanding of topics represented in the current exam outline.
1. Which form of business ownership is owned by one person and generally does not provide the owner with limited liability?
A. Corporation
B. Sole proprietorship
C. Limited liability company
D. Limited partnership
Show Answer
Answer: B. A sole proprietorship has one owner and does not create the same liability protection normally associated with corporations or LLCs.
2. The value of the next-best alternative that is given up when a decision is made is called:
A. opportunity cost
B. marginal revenue
C. economies of scale
D. market share
Show Answer
Answer: A. Opportunity cost is the value of the best alternative sacrificed when one option is chosen over another.
3. A manager establishes objectives and determines the actions needed to achieve them. Which management function is being performed?
A. Controlling
B. Staffing
C. Planning
D. Directing
Show Answer
Answer: C. Planning involves setting goals and determining how the organization will achieve them.
4. Dividing a broad consumer market into groups with similar characteristics or needs is called:
A. market segmentation
B. vertical integration
C. product diversification
D. financial leveraging
Show Answer
Answer: A. Market segmentation divides a larger market into groups whose members share characteristics or purchasing needs.
5. Which accounting equation must remain in balance?
A. Assets = Revenue + Expenses
B. Assets = Liabilities + Owners’ Equity
C. Revenue = Assets + Liabilities
D. Expenses = Revenue + Equity
Show Answer
Answer: B. The fundamental accounting equation states that assets equal liabilities plus owners’ equity.
6. A manufacturer attempts to receive materials shortly before they are needed in production in order to reduce inventory costs. This approach is most closely associated with:
A. market penetration
B. just-in-time inventory
C. job rotation
D. price skimming
Show Answer
Answer: B. Just-in-time systems attempt to minimize inventory by receiving materials close to the time they are actually needed.
7. A management information system is primarily designed to:
A. eliminate the need for managers
B. provide information that supports organizational decisions
C. replace all accounting records
D. prevent competitors from entering a market
Show Answer
Answer: B. Management information systems collect and organize information that can support planning, control, and decision-making.
8. Which human-resource activity involves choosing the most appropriate applicant from a pool of job candidates?
A. Selection
B. Orientation
C. Compensation
D. Performance appraisal
Show Answer
Answer: A. Selection is the process of evaluating applicants and choosing the candidate most appropriate for a position.
9. Which group would generally be considered a stakeholder of a corporation?
A. Only shareholders
B. Only senior managers
C. Employees, customers, owners, and communities affected by the business
D. Only government regulators
Show Answer
Answer: C. Stakeholders are individuals or groups that can affect or be affected by an organization’s actions.
10. A tax imposed by a government on goods imported from another country is called a:
A. tariff
B. subsidy
C. quota
D. dividend
Show Answer
Answer: A. A tariff is a tax placed on imported goods.
DSST Introduction to Business Resources
Official DSST Introduction to Business Page — Review the exam information and current credit recommendation.
Official Introduction to Business Fact Sheet — Review the current blueprint, references, and official sample questions.
Prometric DSST Testing Information — Find current registration, remote testing, test-center, transcript, and testing-policy information.
DANTES DSST Information — Review military eligibility, funding, remote testing, and retest policies.
Mometrix DSST Study Guide — Find additional DSST review and practice resources.