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 80 selected-response questions. The content areas covered by the first test are business law, communication, economics and finance, management, and financial analysis. Some of the topics covered by the business law subarea are: ethical character traits and values, the relationship between the law and ethics, the most common sources of the law, how offer and acceptance can create contractual rights and duties, and laws that regulate union activities. Some of the topics covered by the communication subarea are: information reading, social and business listening, spoken communication, written communication, and workplace communication. Some of the topics covered by the economics and finance subarea are: the government’s effect on business activities and economic decisions, the impact that global trade has on business decision making, the use of financial service providers to assist in achieving financial goals, investment strategies to ensure financial well-being, the essential elements of negotiable instruments, and the fundamentals of bankruptcy. Some of the topics covered by the management subarea are: how to apply organizational goals and to solve business related problems in the Unites States and abroad, how to compare leadership styles and determine their effectiveness in addressing various business needs and goals, the role of organized labor and its impact on government and business, and methods of conducting a needs analysis to determine human resources requirements. Some of the topics covered by the financial analysis subarea are: how to apply basic mathematical skills to solve problems, how to apply problem-solving and logic-development skills, how to explain different types of business operations and how they are reflected in financial statements, and how to describe and explain the conceptual framework of accounting and generally accepted accounting principles and assumptions.
The second test consists of 80 selected-response questions. The content areas covered by the second test are customer relations, entrepreneurship and business organizations, information technology, and programs and professional development. Some of the topics covered by customer relations subarea are: how to explain the nature of positive customer relations, how to explain a customer service mindset, how to adapt communications according to clients’ cultural and social backgrounds, and effective methods to address difficult customers. Some of the topics covered by the entrepreneurship and business organizations subarea are: how to describe the unique characteristics of entrepreneurs and analyze the advantages and risks of owning a business, the advantages and disadvantages of buying an existing business or purchasing a franchise, how to differentiate between types of business organizations, and the effect of the tax code on limited liability companies. Some of the topics covered by the information technology subarea are: tools, strategies, and systems needed to process and distribute information to aid decision making; and laws related to technology and the impact of advances in computer technology. Some of the topics covered by the programs and professional development subarea are: how to obtain work experience, career strategies and job-seeking documents, the skills needed to enhance career progression, the purpose of college and career portfolios, how school-based enterprises and student organizations have an impact on business education programs, and how to assist students in the transition from program completion to employment.
The examination must be completed within four hours. Test-takers will 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
2. According to Maslow, which of the following is an intrinsic motivation?
A: recognition from the boss
B: professional awards
C: personal satisfaction
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
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.