Study Guide
Field 140: 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
Pie chart of approximate test weighting outlined in the table below.
| subareas | range of competencies |
approximate percentage of test |
|
|---|---|---|---|
| Selected-Response | |||
| roman numeral 1 | business foundations | 0001to0003 | 26 percent |
| roman numeral 2 | business management | 0004to0006 | 21 percent |
| roman numeral 3 | technology systems | 0007to0008 | 19 percent |
| roman numeral 4 | finance and economics | 0009to0010 | 19 percent |
| this cell intentionally left blank. | 85 percent | ||
| subareas | range of competencies | approximate percentage of test | |
|---|---|---|---|
| constructed-response | |||
| roman numeral 5 | pedagogical content knowledge | 0011 | 15 percent |
subarea roman numeral 1–Business Foundations
Competency 0001–Understand and analyze principles of business law.
start italics The following topics are examples of content that may be covered under this competency. end italics
- Analyze important events, developments, and trends in the history of business.
- Analyze basic features of the legal system (e.g., the relationship between ethics and the law, the sources of law, the structure of the court system, concepts and processes of criminal and civil law, constitutional law and rights).
- Apply concepts of contract law, law of sales, and consumer law.
- Analyze the role and importance of agency law and employment law (e.g., Title 7 of the Civil Rights Act of 19 64; Equal Employment Opportunity Commission [E E O C]; laws that regulate employees' rights, employment conditions, and labor union activities).
- Examine legal issues surrounding the major forms of business organizations (i.e., sole proprietorship, partnership, and corporation) and variations of the basic forms (e.g., franchise, limited partnership, limited liability company, S corporation) and the laws and agencies that regulate corporations (e.g., Delaware General Corporation Law, Securities and Exchange Commission [S E C], Sarbanes-Oxley Act, Dodd-Frank Act, antitrust laws).
- Examine the effects of legal rules that apply to personal property, real property, and intellectual property.
- Demonstrate knowledge of negotiable instruments (e.g., bill of exchange, promissory note), insurance, credit, and bankruptcy.
- Examine the effects of federal statutes that apply to environmental law and energy regulation (e.g., National Environmental Policy Act; Clean Water Act; Toxic Substance Control Act; Oil Pollution Act; Solid Waste Act; Comprehensive Environmental Response, Compensation, and Liability Act).
- Demonstrate knowledge of legal rules that apply to marriage, divorce, and child custody.
Competency 0002–Apply principles of business communication.
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- Apply basic elements of the communication process (e.g., tone and style of a message matched to its purpose and audience, communication inside and outside of an organization).
- Recognize elements of effective oral communication in the workplace (e.g., preparing and delivering oral presentations and reports, active listening, identifying barriers to listening, sending and receiving nonverbal cues, interpreting the meaning of silence in communication).
- Apply methods of ensuring effective transfer of meaning (e.g., distinguishing between fact and opinion, distinguishing between literal and inferential statements, evaluating ambiguity and differences of perspectives between the sender and the receiver).
- Apply standard practices for effective written communication (e.g., using business writing format and terminology; using plain and concise language for clarity; using appropriate spelling, grammar, and punctuation).
- Apply techniques for effective reading (e.g., restating or summarizing, using contextual clues to recognize word meaning, selecting appropriate reading methods for particular situations, evaluating the usefulness of sources of information).
- Demonstrate knowledge of methods of choosing and using appropriate technology to enhance the effectiveness of communications.
- Interpret quantitative information in charts, graphs, and tables.
- Apply knowledge of human relations, interpersonal skills, cultural diversity, and cross-cultural communication (e.g., tact, courtesy, sincerity, honesty, manners, etiquette, sensitivity).
Competency 0003–Apply principles of career development.
start italics The following topics are examples of content that may be covered under this competency. end italics
- Apply knowledge gained through self-assessment to develop a set of short- and long-term career goals and an individual career plan.
- Apply knowledge of resources to explore and research career options.
- Apply knowledge of the relationships between career development and career readiness skills (e.g., work ethic and personal management, interpersonal relationships, respect for diversity, creativity, innovation, problem solving, remote or virtual work).
- Apply knowledge of strategies for effectively transitioning from school to career.
- Examine the roles of education, training, and lifelong learning in career planning.
- Examine education, experience, skills, and personal requirements for career opportunities in business-related fields, such as information technology, accounting, and entrepreneurship.
subarea roman numeral 2–Business Management
Competency 0004–Analyze principles and practices of management.
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- Analyze management functions (i.e., planning, organizing, leading, and controlling) and their implementation.
- Examine theories of management and leadership and their application in the business environment.
- Examine issues related to managing businesses of various organizational structures (e.g., functional, divisional, matrix, team).
- Apply management principles to employee relations and human resource issues (e.g., recruitment and selection, cultural diversity, training and development, performance appraisal and review, compensation and promotion, termination, labor relations).
- Apply management principles to issues surrounding a firm's competitive position within an industry, short- and long-term financing, and minimizing risk.
- Apply operations management principles to issues surrounding product design, scheduling, materials procurement, inventory management, and quality standards.
Competency 0005–Analyze principles of marketing.
start italics The following topics are examples of content that may be covered under this competency. end italics
- Analyze the nature of marketing and the effects of marketing on the individual, business, and society.
- Analyze the characteristics, motivations, and behaviors of consumers.
- Examine how marketing is influenced by external factors (e.g., government and legal regulations, ethical issues, economic issues, competitive environment, stakeholders, sociocultural issues, technology).
- Analyze the elements of product and service development within the marketing mix.
- Demonstrate knowledge of pricing strategies and the roles of product placement and marketing (distribution) channels.
- Analyze the elements of promotion (e.g., advertising, sales promotion, public relations, personal selling) within the marketing mix.
- Demonstrate knowledge of the elements, design, and purposes of a marketing plan.
- Analyze the role of market research in decision making.
Competency 0006–Analyze principles of international business.
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- Analyze factors (e.g., social and cultural, political, legal, economic) that affect the global business environment.
- Examine a company's options for doing business in international markets (e.g., turnkey project, licensing, franchising, joint venture, strategic alliance, wholly owned subsidiary) and other factors that can affect market entry decisions (e.g., market selection, timing, order of entry, scale of entry).
- Examine concepts, organizations, and agreements that influence international trade, the international monetary system, and current patterns of trading partners.
- Analyze the effects of different types of trade barriers and trade incentives on companies, product categories, and the balance of trade and the general economy of countries.
- Analyze special challenges for international business in operations, production, and strategic management.
- Analyze special challenges for international business in human resources, workforce diversity, and cross-cultural communication (e.g., tact, courtesy, sincerity, honesty, manners, etiquette, sensitivity).
- Apply marketing concepts (e.g., consumer behavior, marketing research, product development, pricing strategies, distribution channels, transportation, promotional activities) to international business situations.
- Analyze the effects of economic conditions, central banks, balance of payment situations, and political issues on currency values and the effects of currency fluctuations on international trade.
subarea roman numeral 3–Technology Systems
Competency 0007–Analyze basic principles of technology and skills associated with the use of technology.
start italics The following topics are examples of content that may be covered under this competency. end italics
- Assess the effects of information technology in a global society (e.g., effects on social mores and on approaches toward government, work, family, school, and culture; risks to personal health, safety, and privacy) and the legal and ethical issues associated with its use.
- Demonstrate knowledge of methods of gathering, evaluating, synthesizing, using, citing, and disseminating information from technology sources.
- Explain the purpose, operation, and care of computer hardware devices, components, and input technologies (e.g., mouse, stylus, multitouch screen, keyboard).
- Demonstrate knowledge of processes for identifying, evaluating, selecting, installing, using, upgrading, troubleshooting, and customizing operating systems and utilities (e.g., antivirus and malware software, disk management tool, file management tool, disk cleanup and defragmentation tool, file compression tool, backup utility).
- Demonstrate knowledge of processes for identifying, evaluating, selecting, installing, using, upgrading, troubleshooting, and customizing applications (e.g., word processing, database management, simulations, spreadsheets, desktop publishing, presentation software).
Competency 0008–Apply principles of using technology to create business solutions.
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- Demonstrate knowledge of processes for designing, developing, testing, implementing, updating, and evaluating Web solutions.
- Apply principles of technology to solve problems involving database management systems and the gathering, storage, retrieval, and transmission of information.
- Apply principles of technology to solve problems related to project and business management.
- Demonstrate knowledge of processes for analyzing and creating digital media and using digital media in e-commerce.
- Demonstrate knowledge of methods for designing, deploying, and administering networks (e.g., network infrastructure, distributed cloud infrastructure, connectivity hardware and related software, network protocols).
- Examine the use of information technology in major business functions (e.g., marketing and sales, accounting and finance, manufacturing and logistics, research and development, human resource management).
- Demonstrate knowledge of policies and procedures to implement security and risk management for information technology.
subarea roman numeral 4–Finance and Economics
Competency 0009–Apply principles of accounting.
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- Apply basic terms and principles used in accounting (e.g., assets and liabilities, debt and equity financing, revenue and expenses, gains and losses, working capital, accrual basis and cash basis, capital expenditures and revenue expenditures, depreciation, amortization).
- Apply generally accepted accounting principles (G A A P) and the accounting cycle.
- Demonstrate knowledge of the sections, formats, and purposes of various financial reports and statements and of how the reports and statements relate to each other.
- Apply knowledge of compliance with tax laws and of appropriate accounting practices for payroll reports.
- Use accounting principles and financial ratios and other information from financial statements to make informed business decisions.
Competency 0010–Analyze basic principles of consumer economics and finance.
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- Apply computational skills (e.g., percents, decimals, fractions, ratios), statistics, and concepts of probability.
- Demonstrate knowledge of the related concepts of compound interest, present discounted value, future value, and the time value of money; and use computational skills to solve problems involving these concepts.
- Use computational skills to solve problems involving the tax system.
- Demonstrate knowledge of economic concepts (e.g., opportunity costs, trade-offs, marginal costs, marginal benefits) involved in making choices about how to use scarce economic resources.
- Analyze the features and institutions that characterize the U.S. economy (e.g., profit, competition, individual choice, entrepreneurship, incentive systems).
- Analyze factors that affect the supply and demand of goods and services in a market economy, and explain how changes in supply and demand affect economic activity (e.g., equilibrium prices, costs of productive resources and technologies, profit opportunities, incomes, consumers' buying and selling decisions, the allocation of resources and goods and services).
- Analyze how the macroeconomy is measured, how it functions, the causes of different types of unemployment and inflation, and the ways in which public policy can affect the macroeconomy.
- Analyze the major functions of the public sector in a mixed economy (e.g., regulating competition and monopolies, correcting market failures, setting price ceilings and floors, using public policy and taxation to affect the allocation of resources).
- Analyze factors (e.g., supply and demand, geographic location, level of education and human capital, productivity, skill level, type of industry, union membership, technology, work ethic) that affect people's incomes.
- Analyze the effects of various types of taxation on personal finances and financial planning, and demonstrate knowledge of information and forms involved in the completion of income tax returns.
- Demonstrate knowledge of concepts involved in planning for short- and long-term personal spending goals (e.g., fixed and variable expenses, discretionary income, income and spending patterns through the life cycle) and analyze methods of maximizing consumer satisfaction when buying goods and services (e.g., the concepts of opportunity cost and marginal utility; alternative sources for purchases; costs and benefits of purchasing, leasing, and renting).
- Evaluate savings and investment options and financial services to meet short- and long-term goals.
- Analyze factors that affect the choice of credit, the cost of credit, and the legal aspects of using credit, including methods of financing postsecondary education.
- Examine choices available to consumers for wealth management, estate planning, and risk protection (e.g., various types of insurance, secure storage of documents, cash reserve, household inventory, medical records retention, wills and trusts).
subarea roman numeral 5–Pedagogical Content Knowledge
Competency 0011–Analyze a lesson plan and student work sample for a learning standard in the state standards for business education and describe differentiated instructional strategies that address the student's needs.
start italics The following topics are examples of content that may be covered under this competency. end italics
- Apply knowledge of standards-based learning goals for business education content.
- Analyze a student's work samples from a business education lesson, citing specific evidence to identify their strengths and needs.
- Describe differentiated instructional strategies based on the student's identified strengths and needs.
- Describe the potential effects of this analysis on future instruction for specific students, for specific units of study, and for a teacher's general instructional practice.