Earning a busines degree is a great move for a secure future, because what you learn will carry over into a variety of professions and careers. If you are in business school and already know the basic principles of business, why not test out of the introductory course? The DSST Introduction to Business exam can help you earn college credit for the business know-how you already have.
Here ‘s how it works – if you feel confident in your business knowledge, check with your college or university to confirm that it accepts DSST exams for credit. Then register and pay for the DSST Introduction to Business exam with any college that delivers DSST exams. The DSST exam costs less than traditional classroom hours and you will have more time to take the classes you really need.
The DSST Introduction to Business exam covers these topics:
- Foundations of Business – 25%
- Functions of Business – 60%
- Contemporary Issues – 15%.
Because more than half the exam addresses Functions of Business, you should focus a large amount of your time on reviewing management, marketing, finance, accounting, production and operations, management information systems, and human resources.
Although DSST exams are designed to measure what you already know, studying for the exam can provide a helpful review and bring figures and other facts to the forefront. A review is especially important for the DSST Introduction to Business exam, as it covers a very broad spectrum of information.
You should definitely invest time in a DSST Introduction to Business exam study guide, which offers sample questions, general information about DSST testing, and a detailed test outline.
You may also want to check out some common introductory business textbooks. One of the most effective ways to study for the DSST Introduction to Business exam is to compare the outline from a study guide with business textbook tables of contents, and then study the material that appears on both.
DSST Introduction to Business Practice Questions
1. Joe was tired of working for other people. He had an idea to start his own ice cream business and wanted to set it up where he alone would be responsible for the decisions and the rewards. In this case, his organization would be listed as:
A. limited partnership
B. general partnership
C. sole proprietorship
D. master limited partnership
2. Tom and Bill were good at fiberglass, spray painting, and boat making, so they wanted to develop a business that customized bass boats. They each had another job that was full time and also lacked the resources to fund their project with boats. A group of dentists knew both men and saw potential in their plan, so they offered to fund the start-up if Tom and Bill would handle operations. It started on weekends for both men but quickly expanded. In this case, the type of business ownership would be known as:
A. general partnership
B. limited partnership
C. master limited partnership
D. sole proprietorship
3. Jake’s family made wonderful barbeque in their own backyard. They dug a pit, cut the white oak and hickory, and would even sit out all night on weekends while it cooked slowly over the smoke. Neighbors and family loved the products that came from Jake’s pit. They even talked the family into starting a business around the concept. But Jake’s family could not agree on any of the decisions, so they decided to appoint a board of directors who would operate as “officers” for the business, filed formal paperwork called “articles” and even held regular meetings with their board of directors. After the business started, Jake’s group sold stock in it and actually paid a dividend. In this case, the type of business would be known as:
A. general partnership
B. limited partnership
C. master limited partnership
D. corporation
4. When it comes to corporations, creditors can seek recovery from:
A. shareholders
B. directors and officers
C. board of directors
D. assets of the corporation
5. Joe is in a partnership with his friend and neighbor, Tom. Both own and run a metal siding business in the area, but a recent housing drop has hindered their profits to the point where they are considering bankruptcy. They want to continue in business but struggle to repay their suppliers. Which of the following below would be the best option for them if they just need some time in order to make some changes and refocus their efforts?
A. Chapter 7
B. Chapter 11
C. Chapter 12
D. Chapter 13
6. Lucy has dreamed all her life for the day when she could run her own business. Friends tell her to consider a franchise since that would eliminate many of the risks facing new businesses. That sounds good to Lucy, but she has some hesitations. Which of the below are NOT a disadvantage when it comes to franchises?
A. being subject to corporate rules
B. large start-up costs
C. being forced out of business if other franchises in the chain fail
D. operating essentially as a sole proprietor even though you get help in management and marketing
7. Bowers’ Plastics is a local firm that will be bought out by T-Rate Tennis Products, a multi-national corporation that is interested in the innovative approach that Bowers takes with their racquetball production. T-Rate specializes in a wide range of sports equipment; however, Bowers has only one specialization, and that’s the way they produce racquetballs that retain their inner pressure longer than others on the market. What type of merger would be best for this?
A. vertical
B. horizontal
C. conglomerate
D. either “a” or “b”
8. Sole proprietorships face “unlimited liability.” Which of the following is NOT true when it comes to that?
A. business losses become personal losses for the business owner
B. responsibility to liquidate assets to pay for business loss even if those assets include real estate, cars, or even funds from their own bank account
C. limits on personal losses if they exceed the owner’s income
D. Only “a” and “c”
9. Shelia and Marcie are good at hair styling and decide to open their own beauty shop. It succeeds far beyond their expectations, so they move into a plan with the hope of franchising. Both draft the legal agreement that will form the basis of their contract. But Shelia worked in the medical field before this attempt, so she understands the risk that they could face when it comes to legal liability. So she suggests they set up their business with a “limited liability” clause in the formal agreement that they write. What does that mean?
A. Any partners are responsible for all debts and losses even beyond the value of their investment
B. Any partners are not responsible for all debts and losses beyond the value of their investment
C. Personal assets cannot be taken to compensate any creditors
D. Both “b” and “c”
10. Foreign corporations are different from alien corporations in that…
A. both were incorporated in another country
B. both are authorized to do business in an area where they were not incorporated
C. both are within the U.S. only
D. only “a” and “b”
DSST Introduction to Business Practice Questions Answer Key