Introduction to Business

Category: Objective Test
Type: Individual

Overview

60-minute test administered during the NLC.

Objective Test Competencies: Consumerism; Characteristics and Organization of Business; Money Management, Banking, and Investments; Rights and Responsibilities of Employees, Managers, Owners, and Government; Career Awareness; Insurance; Economic Systems; Ethics; Global (International) Business


Guidelines

Objective Test Guidelines
Objective Test Guidelines
  • No materials may be brought to the testing site.
  • Electronic devices must be turned off and out of sight.
  • No calculators may be brought into the testing site; calculators will be provided.
  • Bring a writing instrument.
General Guidelines

The general event guidelines below are applicable to all national competitive events. Please review and follow these guidelines when competing at the national level. When competing at the state level, check the state guidelines since they may differ.

Eligibility

  • Dues: Competitors must have paid FBLA national and state dues by 11:59 p.m. Eastern Time on March 1 of the current school year.
  • NLC Registration: Participants must be registered for the NLC and pay the national conference registration fee in order to participate in competitive events.
  • Deadlines: The state chair, or designee, must register each state competitor on the official online entry forms by 11:59 p.m. Eastern Time on the second Friday in May.
  • Each state may submit four (4) entries in all events except LifeSmarts, Virtual Business Finance Challenge, and Virtual Business Management Challenge.
  • Each competitor can only compete in one (1) individual/ team event and one (1) chapter event.
  • Each competitor must compete in all parts of an event for award eligibility.
  • A team shall consist of two or three members. Exceptions are Parliamentary Procedure which must be a team of four or five members, and LifeSmarts which must be a team of two members.

Repeat Competitors

Competitors are not permitted to compete in an event more than once at the NLC unless one of the following circumstances applies:

  • Modified Events: A competitor may compete in the same event when the event is modified. Note, if the only modification is a name change, competitors may not compete in the renamed event.
  • Team Events: One (1) competitor of the team may have competed in the same event at one (1) previous NLC; however, they may not compete more than twice in the event at the national level.
  • Chapter Events: Competitors may compete in a chapter event more than once (American Enterprise Project, Community Service Project, and Partnership with Business Project).
  • Individual Entry: A competitor who competed as an individual entry in a team event at the national level may compete in the same event a second time as part of a team, but not a second time as an individual.
  • Parliamentary Procedure: Two (2) competitors of the team may have competed in this event at a previous NLC; however, they may not compete more than twice at the national level.
  • Pilot Event: Competition in a pilot event does not disqualify a competitor from competing in the same event if it becomes an official competitive event. The participant may compete in another event as well as a pilot event.

Breaking Ties

  • Objective Tests: Ties are broken by comparing the correct number of answers to the last 10 questions on the exam. If a tie remains, the competitor who completed the test in a shorter amount of time will place higher. If this does not break the tie, answers to the last 20 questions will be reviewed and determine the winner.
  • Objective and Production Tests: The production test scores will be used to break a tie.
  • Objective Tests and Performances: The objective test score will be used to break a tie based on the tie-breaking criteria of objective tests.
  • Reports/Projects and Performances: The report/project scores will be used to break a tie.
  • Performances: Judges must break ties and all judges’ decisions are final.

National Deadlines

  • State chair/adviser must register all competitors for NLC competitive events online by 11:59 p.m. Eastern Time on the second Friday in May.
  • All prejudged components (reports, websites, projects, statement of assurance) must be received by 11:59 p.m. Eastern Time on the second Friday in May.
  • All prejudged projects and reports must be submitted electronically.
  • All Statements of Assurance must be submitted online.
  • All production tests must be received at FBLA-PBL by 11:59 p.m. Eastern Time on the third Friday in May.
  • All production tests must be uploaded online.
  • State chair/adviser may make name changes only (no additional entries) by 11:59 p.m. Eastern Time on the first Friday in June. Competitor drops are the only changes allowed after this date and onsite.

National Awards

The number of competitors will determine the number of winners. The maximum number of winners for each competitive event is 10. Only one (1) award is given to the schools competing in chapter events (American Enterprise Project, Community Service Project, Local Chapter Annual Business Report, and Partnership with Business Project).

Additional Materials

Certain events may allow the use of additional materials. Please refer to event guidelines.

Americans with Disabilities Act (ADA)

FBLA‑PBL meets the criteria specified in the Americans with Disabilities Act for all participants who submit a special needs form.

Recording of Presentations

No unauthorized audio or video recording devices will be allowed in any competitive event. Participants in the performance events should be aware the national association reserves the right to record any performance for use in study or training materials.


Preparation

Sample Practice Materials

Format Guide

Competencies
Competency
Tasks
Consumerism
1. List sources of consumer information
2. Identify rights and responsibilities of consumers and list ways to protect consumer rights
3. Explain the function of organizations such as the Better Business Bureau and the Federal Trade Commission.
4. Analyze the characteristics, motivations, and behaviors of consumers
5. Interpret financial elements to determine impact on consumer behavior.
6. Describe the use of advertisements and other marketing strategies.
7. Explain the importance of comparative shopping.
8. Describe the difference between a promotional and a clearance sale.
Characteristics and Organization of Business
1. Define the main goals and functions of a business
2. Explain the difference between gross profit and net profit.
3. List and describe the steps in organizing a business.
4. Define the main features, advantages, and disadvantages of various types of business ownership
5. Describe the major functions of business and their relationship to one another.
6. Identify current business trends to recognize changes needed in business operations
7. Develop a business plan that facilitates growth and business success.
Money Management, Banking, and Investments
1. Discuss the nature of monetary policy and the role of the Federal Reserve System.
2. Discuss the general methods of financing business ventures and various sources of financing
3. Develop, evaluate, and modify a spending/savings plan.
4. Describe the purpose of budgets and identify the steps in preparing a good budget
5. Demonstrate proper procedures for managing a checking account (e.g., writing checks, balancing check register, making deposits, electronic funds transfers, and debit cards).
6. Compare services provided by banks, credit unions, and other financial institutions
7. Define the difference between fixed expenses and variable expenses
8. Prepare and interpret financial statements such as a balance sheet and an income and expenditure record.
9. Evaluate savings and investment options (e.g., stocks, bonds, mutual funds, real estate, etc.) to meet short- and long-term goals.
10. Describe source of securities information.
11. Compare and contrast various sources of credit
12. Explain the advantages and disadvantages of using credit.
13. Compute simple interest loans
14. Explain how a good credit record can be established and maintained
Rights and Responsibilities of Employees, Managers, Owners, and Government
1. Identify ways for businesses to demonstrate their social responsibility
2. Identify ways to improve employee morale and customer satisfaction
3. Discuss procedures and consequences when on-the-job rules and laws are not followed.
4. Identify basic principles of organized labor and describe its influence on government and business.
5. Explain the impact of equal employment opportunity and affirmative action on business
6. Recognize bias, vested interest, stereotyping, and the manipulation and misuse of information
7. Determine the relationship between government and business to ascertain government’s role in a market economy
8. Analyze impact of government regulation and rights on business.
Career Awareness
1. Identify personal qualities and characters and match to business careers.
2. Identify factors affecting the future of the workforce.
3. Identify sources of information about careers and job leads
4. Write a letter of application.
5. Prepare a resume or personal data sheet
6. Demonstrate how to properly fill out a job application form.
7. Implement job-interview strategies
Insurance
1. Identify reasons for buying personal and business insurance.
2. Distinguish among the various types of insurance (e.g., home, life, medical automobile, liability, disability, etc.).
3. Compare basic types of insurance policies to determine appropriate use.
4. Implement safety, health, and environmental controls to minimize loss and risk
Economic Systems
1. Define key economic terms
2. Analyze the role of supply and demand in the economy.
3. Identify major components of the free enterprise system.
4. Explain the economic role played by business in satisfying customer needs and wants in a free enterprise system
5. Recognize effects of competition on businesses, consumers, and society
6. Explain characteristics, including strengths and weaknesses of various types of economic systems (e.g., traditional, communist, socialist, etc.).
7. Identify factors affecting business profit.
8. Explain the importance of productivity and how finances, labor, and technology affect productivity
9. Identify economic trends/indicators to measure economic conditions.
10. Examine current events (regional, national, and international) to determine their impact on business.
11. Analyze the economic impact of e-commerce.
Ethics
1. Identify current and emerging ethical issues in the global business environment and the consequences of unethical business dealings.
2. Exhibit legal and ethical behaviors when using information and technology and discuss consequences of misuse
3. Apply a professional code of ethics to a workplace problem or issue.
4. Apply ethics and government regulations to protect the business.
5. Explain the relationship of business ethics to product/service management.
6. Examine the role of ethics and social responsibility on decision making
Global (International) Business
1. Explain the difference between foreign trade and domestic trade
2. Describe some of the ways in which social, cultural, economic, legal, and political differences among nations affect international business
3. Discuss how current world events impact international business.
4. Recognize the impact of international trade on business.
5. Demonstrate an understanding of global competition
6. Describe how tariffs, quotas, and embargoes affect world trade.

Alignment

NBEA Standards
  • Career Development
  • Communication
  • Economics & Personal Finance
  • Entrepreneurship
  • Management
  • Marketing
Career Clusters
  • Business Management & Administration
  • Finance
  • Marketing, Sales, & Service

Eligibility

States may submit up to 4 entries.
Competitors must be registered for NLC and pay registration fee.
Competitors must pay dues by 11:59 p.m. Eastern on March 1.

Timeline

Test: 1 hour