GACE Business Education

The Business Education assessment, offered as part of the Georgia Assessments for the Certification of Educators, is divided into two tests.

The first test consists of 60 selected-response questions (20% of the test score) and 2 constructed-response assignments (20% of the test score). The content areas covered by the first test are business management; law, ethics, and career development; and accounting. The topics covered by the business management subarea are: the functions of business management; organizational structures and their relation to business management; human resource management; financial management in business; and the principles and procedures of entrepreneurship. The topics covered by the law, ethics, and career development subarea are: the relationships among educational achievement, leadership, employment, and career development; the principles of business law; and ethics and social responsibility issues in business. The topics covered by the accounting subarea are: the principles of accounting and the accounting cycle; the methods for preparing, interpreting, and analyzing financial statements using appropriate accounting principles; and the accounting procedures related to the forms of business ownership, payroll, banking, and income taxes.

The second test consists of 60 selected-response questions (80% of the test score) and 2 constructed-response questions (20% of the test score). The content areas covered by the second test are economics, international business, and personal finance; marketing; and business communication and information technology. The topics covered by the economics, international business, and personal finance subarea are: basic economic concepts and the operation of the US and international economies; international business and the global economy; and the principles of consumer economics and personal finance. The topics covered by the marketing subarea are: the basic principles of marketing, product and service planning, pricing, distribution, product promotion, and the selling process. The topics covered by the business communication and information technology subarea are: the principles of effective business communication, computer concepts, technology, office equipment, information processing, information systems, technology applications, computer networking, computer programming, confidentiality, security, and data integrity.

The examination must be completed within four hours. The total test score is placed on a scale of 100 to 300, with 220 as the lowest passing score. Scores are based on the number of selected-response questions answered correctly and the scores assigned by judges to the constructed responses. Test-takers will also receive performance indices indicating their success in each subarea of the examination. Scores will be available approximately a month after the date of the examination; unofficial results are posted on the internet, and an official score report is mailed to the test-taker, the Professional Standards Commission, and the institution specified by the test-taker during registration.

GACE Business Education Practice Questions

1. What measure is derived by subtracting sales returns and discounts from gross sales?

A: gross revenue
B: net sales
C: net operating expenses
D: revenue

2. According to Maslow, which of the following is an intrinsic motivation?

A: recognition from the boss
B: professional awards
C: personal satisfaction
D: money

3. Which of the following is the measure of a company's ability to pay what it owes as these obligations arise?

A: liquidity ratio
B: effectiveness ratio
C: real ratio
D: profitability ratio

4. What kind of manager is responsible for all of the activities in an organization that produce profit?

A: functional manager
B: line manager
C: staff manager
D: general manager

5. What is the name for the date by which a stock recipient must own the stock in order to receive an upcoming dividend?

A: payment date
B: date of receipt
C: declaration date
D: record date

Answer Key

1. B. Net sales are the same thing as net revenue.
2. C. Intrinsic motivations are those positive thoughts and emotions that stimulate effort.
3. A. Liquidity is the degree to which assets can be applied to current needs.
4. D. A general manager has a large sphere of influence.
5. D. Stocks are often bought and sold with the record date in mind.