• 60 questions

Intro to Business DSST Practice Test

Unofficial practice on the three areas of the DSST Introduction to Business outline, from ownership forms to global trade.

Economists name four types of competition. Which one means few sellers?

Pick an answer, then press Check answer. Then you see Correct or Not quite, with the reason. Keys: A to D pick, Enter checks.

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Exam mode: 50 questions, 60 minutes.

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Unofficial practice questions, not affiliated with Prometric, which owns the DSST program. Bank checked October 12, 2026.

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All 60 questions

Foundations of business 18

  • A bakery run as a sole proprietorship is sued for more than the business owns. What follows from this form of ownership? U.S. Small Business Administration, Choose a business structure. DSST outline area I, Foundations of Business (30%), a. Forms of Business Ownership
  • An engineer at a large manufacturer builds a new product line inside the company, using the company's money. What is this called? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 7, Entrepreneurship and Small Business Development. DSST outline area I, Foundations of Business (30%), d. Entrepreneurship
  • Economists name four types of competition. Which one means few sellers? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 3, Economics and Business. DSST outline area I, Foundations of Business (30%), c. Economics of Business
  • The Federal Reserve decides that inflation is the problem. What does a contractionary policy do? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 3, Economics and Business. DSST outline area I, Foundations of Business (30%), b. Government Intervention
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Foundations of business, continued

  • Gross domestic product, adjusted for inflation, goes up from one year to the next. What does that show? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 3, Economics and Business. DSST outline area I, Foundations of Business (30%), c. Economics of Business
  • In a franchise, what does the franchiser grant the franchisee? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 7, Entrepreneurship and Small Business Development. DSST outline area I, Foundations of Business (30%), d. Entrepreneurship
  • In a limited partnership, what is true of a limited partner? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 6, Forms of Business Ownership. DSST outline area I, Foundations of Business (30%), a. Forms of Business Ownership
  • In a year when the federal government spends more than it takes in, what is the gap called and how is it paid for? Exploring Business, version 2.0 (Saylor Academy open textbook), section 1.7, Government's Role in Managing the Economy. DSST outline area I, Foundations of Business (30%), b. Government Intervention
  • The Small Business Administration describes a small business as independently owned and operated, having small influence on its industry and, with few exceptions, fewer than how many employees? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 7, Entrepreneurship and Small Business Development. DSST outline area I, Foundations of Business (30%), d. Entrepreneurship
  • To please consumers, a government caps a product's price well below the level the market would set. What result would be expected? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 3, Economics and Business. DSST outline area I, Foundations of Business (30%), b. Government Intervention
  • Under the IRS requirements for S corporation status, which business could qualify? Internal Revenue Service, S corporations. DSST outline area I, Foundations of Business (30%), a. Forms of Business Ownership
  • What is a business plan? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 7, Entrepreneurship and Small Business Development. DSST outline area I, Foundations of Business (30%), d. Entrepreneurship
  • What is the equilibrium price of a product? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 3, Economics and Business. DSST outline area I, Foundations of Business (30%), c. Economics of Business
  • Which form of ownership has owners called members, protects them from the company's debts, and has its earnings taxed only once? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 6, Forms of Business Ownership. DSST outline area I, Foundations of Business (30%), a. Forms of Business Ownership
  • Which list gives the four general phases of the business cycle? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 3, Economics and Business. DSST outline area I, Foundations of Business (30%), c. Economics of Business
  • Which powers of government does fiscal policy rely on? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 3, Economics and Business. DSST outline area I, Foundations of Business (30%), b. Government Intervention
  • Who is counted in the unemployment rate? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 3, Economics and Business. DSST outline area I, Foundations of Business (30%), c. Economics of Business
  • Why are a regular corporation's earnings said to be taxed twice? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 6, Forms of Business Ownership. DSST outline area I, Foundations of Business (30%), a. Forms of Business Ownership

Functions of business 30

  • A company divides its market by age, income, occupation and education. Which kind of segmentation is this? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 14, Marketing: Providing Value to Customers. DSST outline area II, Functions of Business (50%), b. Marketing
  • A company goes bankrupt and its assets are liquidated. As between its stockholders, who has priority? Investor.gov (U.S. Securities and Exchange Commission), Stocks. DSST outline area II, Functions of Business (50%), c. Finance
  • A company sells newly issued shares to investors in its initial public offering. In which market does that sale take place? Exploring Business, version 2.0 (Saylor Academy open textbook), section 13.5, Understanding Securities Markets. DSST outline area II, Functions of Business (50%), c. Finance
  • A firm launches a new product at a low opening price, hoping to keep rivals out and win a large share of the market quickly. Which pricing strategy is this? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 15, Pricing Strategy. DSST outline area II, Functions of Business (50%), b. Marketing
  • A growing company raises funds by selling shares of ownership instead of borrowing. What is this called? Exploring Business, version 2.0 (Saylor Academy open textbook), section 13.6, Financing the Going Concern. DSST outline area II, Functions of Business (50%), c. Finance
  • A manager compares monthly results with the plan and takes corrective action when they fall short. Which function of management is this? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 8, Management and Leadership. DSST outline area II, Functions of Business (50%), a. Management
  • A manufacturer arranges for materials to reach the plant at the moment they enter production, so little stock is held. What is this method called? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 10, Operations Management. DSST outline area II, Functions of Business (50%), e. Production and Operations
  • A new shop has assets of $600 and liabilities of $400. By the fundamental accounting equation, what is the owner's equity? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 17, Accounting and Financial Information. DSST outline area II, Functions of Business (50%), d. Accounting
  • A store's cash registers record every sale. Managers then receive a summary of sales by department. How do data and information differ here? Exploring Business, version 2.0 (Saylor Academy open textbook), section 15.1, Data versus Information. DSST outline area II, Functions of Business (50%), f. Management Information Systems
  • After a reorganization, twelve supervisors report to one plant manager instead of five. What has changed? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 9, Structuring Organizations. DSST outline area II, Functions of Business (50%), a. Management
  • Financial accountants follow GAAP when they prepare statements. Which body issues these principles? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 17, Accounting and Financial Information. DSST outline area II, Functions of Business (50%), d. Accounting
  • In 360-degree feedback, who rates an employee's performance? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 12, Managing Human Resources. DSST outline area II, Functions of Business (50%), g. Human Resources
  • Managers deciding whether to open in a new state use an interactive system that pulls data from several sources to help with this nonroutine decision. Which kind of system is it? Exploring Business, version 2.0 (Saylor Academy open textbook), section 15.3, Types of Information Systems. DSST outline area II, Functions of Business (50%), f. Management Information Systems
  • On a PERT chart, what is the critical path? Exploring Business, version 2.0 (Saylor Academy open textbook), section 11.4, Graphical Tools: PERT and Gantt Charts. DSST outline area II, Functions of Business (50%), e. Production and Operations
  • On an income statement, what is sales revenue minus cost of goods sold called? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 17, Accounting and Financial Information. DSST outline area II, Functions of Business (50%), d. Accounting
  • Personal selling, advertising, publicity and sales promotion together form what? Exploring Business, version 2.0 (Saylor Academy open textbook), section 9.5, Promoting a Product. DSST outline area II, Functions of Business (50%), b. Marketing
  • What do liquidity ratios such as the current ratio tell a reader of financial statements? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 17, Accounting and Financial Information. DSST outline area II, Functions of Business (50%), d. Accounting
  • What does a company's mission statement describe? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 8, Management and Leadership. DSST outline area II, Functions of Business (50%), a. Management
  • What does a job analysis produce? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 12, Managing Human Resources. DSST outline area II, Functions of Business (50%), g. Human Resources
  • What does a SWOT analysis examine? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 8, Management and Leadership. DSST outline area II, Functions of Business (50%), a. Management
  • What does the practice of job rotation allow? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 12, Managing Human Resources. DSST outline area II, Functions of Business (50%), g. Human Resources
  • What does total quality management cover? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 10, Operations Management. DSST outline area II, Functions of Business (50%), e. Production and Operations
  • What has an investor done by buying a company's bond? Investor.gov (U.S. Securities and Exchange Commission), Bonds. DSST outline area II, Functions of Business (50%), c. Finance
  • What is data mining? Exploring Business, version 2.0 (Saylor Academy open textbook), section 15.2, Managing Data. DSST outline area II, Functions of Business (50%), f. Management Information Systems
  • Which agency enforces Title VII of the Civil Rights Act of 1964, the law that bars job discrimination over race, color, religion, sex or national origin? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 12, Managing Human Resources. DSST outline area II, Functions of Business (50%), g. Human Resources
  • Which four tools make up the marketing mix? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 14, Marketing: Providing Value to Customers. DSST outline area II, Functions of Business (50%), b. Marketing
  • Which leadership style is also known as participative? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 8, Management and Leadership. DSST outline area II, Functions of Business (50%), a. Management
  • Which list gives the four stages of the product life cycle in order? Exploring Business, version 2.0 (Saylor Academy open textbook), section 9.7, The Product Life Cycle. DSST outline area II, Functions of Business (50%), b. Marketing
  • Which network links computers that are close together, such as those in one office building? Exploring Business, version 2.0 (Saylor Academy open textbook), section 15.4, Computer Networks and Cloud Computing. DSST outline area II, Functions of Business (50%), f. Management Information Systems
  • Which software tool uses sales forecasts and ordering lead times to work out how many of each component part are needed and when to order them? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 10, Operations Management. DSST outline area II, Functions of Business (50%), e. Production and Operations

Business and social responsibility 12

  • A bank's loan officer approves a loan to a company in which he secretly holds shares. Which ethical problem is this? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 4, Ethics and Social Responsibility. DSST outline area III, Business and Social Responsibility (20%), a. Business Ethics and Social Responsibility
  • A company balances its responsibilities toward different stakeholders when it makes legal, economic, ethical and social decisions. What is this approach called? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 4, Ethics and Social Responsibility. DSST outline area III, Business and Social Responsibility (20%), a. Business Ethics and Social Responsibility
  • A company sells its product abroad at a price below what it charges at home, to win the foreign market. What is this practice called? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 5, Business in a Global Environment. DSST outline area III, Business and Social Responsibility (20%), b. Global Business Environment
  • A country can make a product using fewer resources than any other country. What does it have in that product? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 5, Business in a Global Environment. DSST outline area III, Business and Social Responsibility (20%), b. Global Business Environment
  • A country imports more than it exports in a year. What does it have? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 5, Business in a Global Environment. DSST outline area III, Business and Social Responsibility (20%), b. Global Business Environment
  • An internal auditor exposes fraudulent bookkeeping at her own company. What is she called? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 4, Ethics and Social Responsibility. DSST outline area III, Business and Social Responsibility (20%), a. Business Ethics and Social Responsibility
  • Two companies fund a separate entity to manage an operation they run together in a foreign market. What is this alliance called? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 5, Business in a Global Environment. DSST outline area III, Business and Social Responsibility (20%), b. Global Business Environment
  • What is a company's code of conduct? Exploring Business, version 2.0 (Saylor Academy open textbook), section 2.4, The Organizational Approach to Ethics. DSST outline area III, Business and Social Responsibility (20%), a. Business Ethics and Social Responsibility
  • What is a tariff? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 5, Business in a Global Environment. DSST outline area III, Business and Social Responsibility (20%), b. Global Business Environment
  • Which federal law was passed in 2002 to bring more audit controls and transparency to business operations? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 4, Ethics and Social Responsibility. DSST outline area III, Business and Social Responsibility (20%), a. Business Ethics and Social Responsibility
  • Which organization promotes world trade and lower trade barriers, enforces trade rules and gives members a forum for settling disputes? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 5, Business in a Global Environment. DSST outline area III, Business and Social Responsibility (20%), b. Global Business Environment
  • Who are a business's stakeholders? Fundamentals of Business, 4th edition (Virginia Tech, 2023), chapter 2, The Foundations of Business. DSST outline area III, Business and Social Responsibility (20%), a. Business Ethics and Social Responsibility

How this list was compiled: Our own questions, written to the exam content outline in the DSST fact sheet for Introduction to Business (Prometric, Rev 6/2024, https://getcollegecredit.com/wp-content/uploads/2024/07/Introduction-To-Business-Fact-Sheet-1.pdf, read 2026-10-12): Foundations of Business 30%, Functions of Business 50%, Business and Social Responsibility 20%. This bank holds 60: 18, 30 and 12. Every fact was read on 2026-10-12 on the public page named under its question: the open textbook Fundamentals of Business, 4th edition (Virginia Tech, 2023), the Saylor Academy open textbook Exploring Business, the U.S. Small Business Administration, the Internal Revenue Service and Investor.gov of the U.S. Securities and Exchange Commission. Licence: Questions, choices and explanations are original work of this site.

How it works

This Intro to Business DSST practice test has 60 questions of our own in the three areas of the exam's fact sheet. Unofficial practice: it is not affiliated with, endorsed by or sponsored by Prometric, which owns the DSST program.

Read the full guide

What the exam covers

Prometric's fact sheet (Rev 6/2024, read October 12, 2026) gives three areas. Functions of business is half the exam: management, marketing, finance, accounting, production and operations, management information systems and human resources. Foundations of business is 30%: ownership forms, government intervention, economics and entrepreneurship. Business and social responsibility is 20%: ethics and the global business environment. The bank holds 30, 18 and 12.

Where the answers were checked

Most answers were read in two open textbooks, Fundamentals of Business from Virginia Tech and Exploring Business from Saylor Academy. Ownership and securities questions were read at the Small Business Administration, the IRS and Investor.gov.

  • Half the exam is the functions of business, so learn those seven first; the bank gives each four or five questions.
  • Keep the ownership forms apart by two things: who answers for the debts, and how many times the earnings are taxed.
  • Fiscal policy is government spending and taxation. Monetary policy is the Federal Reserve's work on the money supply and interest rates.

Questions and answers

How many questions are on the DSST Introduction to Business exam?

The fact sheet says the exam has 100 questions and allows 2 hours. Exam mode here keeps that pace at half the length: 50 questions in 60 minutes.

Is this DSST Intro to Business practice test like the real exam?

It follows the same outline in the same shares, but every question was written for this page. Nothing is taken or reworded from the exam or from the fact sheet's sample questions, so a score here is practice only.

What score do you need to pass the DSST Introduction to Business exam?

The fact sheet prints no percent to pass. It gives the American Council on Education's recommendation of 3 semester hours of lower-level baccalaureate credit for a minimum score of 400. Each college decides what it accepts.

Is there a free DSST practice test for Intro to Business?

This one is free and asks for no sign-up. Prometric's fact sheet is free too: it holds the outline with its percentages, eight sample questions and a list of three reference textbooks.

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