Entrepreneurship ConceptsCategory: Objective Test
60-minute test administered during the NLC.
Objective Test Competencies: Business Plan; Community/Business Relations; Legal Issues; Initial Capital and Credit; Personnel Management; Financial Management; Marketing Management; Taxes; Government Regulations
Skills: Owning and managing a business is the goal of many Americans. This event recognizes PBL members who demonstrate the knowledge and skills needed to establish and manage a business.
Objective Test Guidelines
- No materials may be brought to the testing site.
- Electronic devices must be turned off and out of sight.
- Financial calculators may be used for accounting, finance, and analysis & decision making events; calculators will be provided for all other events.
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.
- Dues: Competitors must have paid PBL national and state dues by 11:59 p.m. Eastern Time on April 15 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 three (3) individuals in all events requiring only objective tests and two (2) individuals or teams for all events that require a pre-judged or performance component.
- Each competitor can compete in two (2) events.
- 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.
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 (Community Service 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.
- 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.
- 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.
- Desktop Publishing—the finished product must be uploaded in PDF format by 11:59 p.m. Eastern Time on the third Friday in May. Label all documents with the event title, competitor’s name, state, and school.
- 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.
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 (Community Service Project and Local Chapter Annual Business Report).
- Financial calculators may be brought to objective testing and used for any accounting, finance, or analysis & decision making events.
- 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.
Graduate students may compete in all PBL events.
- All objective tests are done online and consist of 100 multiple choice questions.
- Ask your professors to share with you the different textbooks they use as resources. Look over the end-of-chapter summary and the glossary words.
- Avoid talking to others as you enter the room.
- Instructions for online testing will be given to you once seated at a computer.
- The calculator function on the computer will be available for use. Financial calculators can be used for all accounting, finance, and “Analysis & Decision Making” events.
- If the equipment doesn’t work, raise your hand until help comes.
- Top Business & Economics Databases from University of Chicago
- Monetary and Fiscal Policy
- Economics Resources from tutor2u
2. Evaluate the types of business ownership/organization structure and understand the advantages and disadvantages of each.
3. Conduct initial feasibility study by identifying industry trends, competition, and market segment using various research techniques.
4. Select a business opportunity based on research.
5. Create a company vision, mission, and short- and long-term strategic goals and plans.
6. Develop and implement financial/budgeting plans including start-up costs and funding needed to begin the business.
7. Prepare a management plan that incorporates legal requirements, business protection, quality control, operations, milestone strategy, and harvesting the business
8. Develop an organizational chart with staffing/human resource plans including job descriptions and recruitment techniques.
9. Prepare an in-depth presentation for potential investors including banks and venture capitalists.
10. Develop accounting reports for a two year period.
2. Develop and implement a public relations program for the company.
3. Develop an ethical code of conduct and implementation process to include business relationships and community activities.
4. Explain the role of business in the community.
5. Develop appropriate methods to communicate business activities with the community and clients/customers.
2. Develop procedures to retain accurate records
3. Demonstrate knowledge of social, ethical, and legal issues for small business.
4. Demonstrate knowledge of and implementation of consumer protection laws.
5. Apply legal interpretations to employee situations, retention of records, safety and security issues, and financial data
6. Develop an expressed and implies warranty for sale and return of goods.
2. Compare costs qualifications, and procedures for various forms of credit.
3. Describe concepts of risk management including factor that affect business risk and rate of return.
4. Complete credit forms and applications.
5. Describe methods of solving credit problems.
6. Identify and maintain records of the initial capital assets (current assets; investments; property, plant, and equipment, and intangible assets).
2. Develop, explain, and maintain written personnel policies, rules and procedures including a grievance system, to ensure consistency and to help employees perform their jobs.
3. Evaluate the effects of employee absenteeism, errors, or other negative employee relations on business productivity.
4. Plan, develop, and implement employee orientation and ongoing training programs.
5. Develop employee recruitment plan to obtain qualified employees.
6. Develop and manage an organization’s salary administration and benefits program to service employees with options and benefits.
7. Develop and implement a plan for evaluation of employee performance and productivity.
8. Develop separation, termination, and transition procedure for processing employee personnel actions.
9. Plan and manage work schedules and personnel to maximize operations.
10. Maintain safe and healthy working conditions in compliance with OSHA standards.
11. Identify and develop a professional growth plan for employees.
2. Plan and maintain a budget.
3. Record business transactions to track business activities and manage cash and banking procedures.
4. Interpret financial data and statements to develop short- and long-term budgetary plans, to determine point of profitability and viability, and to analyze cash flow forecast.
5. Apply computational skills to computerized financial documents.
2. Determine, maintain, and improve the marketing mix
3. Apply strategies for determining and adjusting prices to maximize return and meet customer perception of value.
4. Develop a process for delivering effective customer relation skills.
5. Establish selling philosophies to develop customer loyalty and profitability.
6. Disseminate information about products, services, and the firm to achieve a desired outcome for a product or service.
7. Gather, access, synthesize, evaluate, and disseminate marketing information to make business decision.
8. Identify current business trends to recognize changes needed in business operations
9. Develop and implement a strategic plan for supply chain management.
2. Use tax preparation procedures to determine tax liability for the organization.
3. Analyze ta structures and consequences to assist in business decision making.
4. Apply regulations regarding employee/employer taxes.
2. Exhibit ethical conduct in business negotiations and decisions.
3. Understand the role of government in business.
4. Identify and keep current with laws and regulations that affect business practices.