- 31-page printable PDF
- 185 terms with examples
- 40 practice questions, answers explained
- 2-page cram sheet and study plans
DSST Introduction to Business Study Guide
Everything the DSST Introduction to Business exam tests, in one PDF you can print. Built from Prometric's official outline, heaviest topics first.
- 185 key terms, each with an example
- 40 practice questions with every answer explained
- A 2-page cram sheet for the night before
- 2-, 4- and 8-week study plans built from the exam weights
Last updated 2026 · exam details checked against Prometric's published exam information in 2026
What you get for $5
One chapter for each official content area, in the order the exam weighs them.
- 📘31pages, printable
- 🧭3chapters, heaviest first
- 🔑185terms with examples
- ✍️40practice questions, answers explained
- ⚠️9exam traps to avoid
- 📄2page cram sheet
Try 10 free Introduction to Business questions
In the style of the real exam, from all 3 areas. About 10 minutes, with every answer explained and a score by area.
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Question 1 · Functions of Business
A bank manager sets next year's goal of opening three new branches, then decides which regions to enter and how to fund them. Which management function is she performing?
Show the answer
Answer: B. Planning. Setting goals and deciding how to reach them is planning, the first management function.
The trap: Organizing is tempting because branches will need staff and structure, but that comes after the goals and the approach are set.
Setting goals and deciding how to reach them is planning, the first management function.
The trap: Organizing is tempting because branches will need staff and structure, but that comes after the goals and the approach are set.
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Question 2 · Foundations of Business
Nina and Raj run a bakery as partners with no formal agreement. The bakery cannot repay a $60,000 supplier debt, and its assets are worth far less. Which statement is true?
Show the answer
Answer: C. Either partner's personal assets can be used to pay the debt.. A general partnership has unlimited liability. Creditors can collect the full debt from any partner's personal assets, including the home.
The trap: Limiting losses to the amount invested is tempting, but that protection comes with a corporation or an LLC, not a general partnership.
A general partnership has unlimited liability. Creditors can collect the full debt from any partner's personal assets, including the home.
The trap: Limiting losses to the amount invested is tempting, but that protection comes with a corporation or an LLC, not a general partnership.
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Question 3 · Business and Social Responsibility
An accountant discovers that her employer is hiding losses from investors. When her manager ignores her concerns, she reports the matter to federal regulators. In doing so she is acting as a
Show the answer
Answer: D. whistleblower.. A whistleblower is an employee who reports illegal or unethical conduct by the employer to outside authorities.
The trap: Stakeholder is true of her in a loose sense, but the term describes anyone affected by the firm and does not name the act of reporting wrongdoing.
A whistleblower is an employee who reports illegal or unethical conduct by the employer to outside authorities.
The trap: Stakeholder is true of her in a loose sense, but the term describes anyone affected by the firm and does not name the act of reporting wrongdoing.
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Question 4 · Functions of Business
A company president has 14 vice presidents and managers reporting directly to him, while a plant supervisor has only 5 reporting to her. These numbers describe which concept?
Show the answer
Answer: A. Span of control. Span of control is the number of employees who report directly to one manager.
The trap: Chain of command is about the line of authority, who reports to whom, rather than how many people report to a manager.
Span of control is the number of employees who report directly to one manager.
The trap: Chain of command is about the line of authority, who reports to whom, rather than how many people report to a manager.
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Question 5 · Foundations of Business
A regular corporation earns a profit and pays corporate income tax. It then pays a dividend, and the shareholder reports it as taxable income. What is this tax disadvantage called?
Show the answer
Answer: A. Double taxation. The same profit is taxed once at the corporate level and again when paid out to the shareholder. That is double taxation.
The trap: Pass-through taxation is the opposite: S corporations and partnerships avoid the corporate layer, so profit is taxed only once.
The same profit is taxed once at the corporate level and again when paid out to the shareholder. That is double taxation.
The trap: Pass-through taxation is the opposite: S corporations and partnerships avoid the corporate layer, so profit is taxed only once.
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Question 6 · Business and Social Responsibility
A vice president learns that another firm will soon offer to buy her company at a high price. Before the news is public, she buys a large block of her company's stock. Her action is
Show the answer
Answer: C. illegal insider trading.. Trading on important information that is not yet public breaks securities laws, whatever the person's job.
The trap: Calling it a permitted use of her pay is tempting because executives can own stock, but ownership is legal only when the trade does not use secret information.
Trading on important information that is not yet public breaks securities laws, whatever the person's job.
The trap: Calling it a permitted use of her pay is tempting because executives can own stock, but ownership is legal only when the trade does not use secret information.
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Question 7 · Functions of Business
A regional manager at a restaurant chain turns the corporate five-year growth goals into a plan for this year's openings in her territory. She is making a
Show the answer
Answer: D. tactical plan. A tactical plan is a shorter-term plan, made by middle managers, that carries out part of the strategic plan.
The trap: Strategic plan is wrong because strategic plans are long-range and made by top managers for the whole firm.
A tactical plan is a shorter-term plan, made by middle managers, that carries out part of the strategic plan.
The trap: Strategic plan is wrong because strategic plans are long-range and made by top managers for the whole firm.
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Question 8 · Foundations of Business
Four accountants want to run one firm together, with every partner taking part in management. They also want protection from personal liability if another partner makes a professional error. Which form fits best?
Show the answer
Answer: B. Limited liability partnership. An LLP lets all partners manage while shielding each from liability for the others' wrongdoing or negligence.
The trap: A limited partnership offers protection only to partners who do not manage. Here all four manage, so they would be general partners with unlimited liability.
An LLP lets all partners manage while shielding each from liability for the others' wrongdoing or negligence.
The trap: A limited partnership offers protection only to partners who do not manage. Here all four manage, so they would be general partners with unlimited liability.
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Question 9 · Business and Social Responsibility
A company recruits qualified candidates at colleges with high minority enrollment and sets a goal of correcting a long-standing imbalance in its workforce. This policy is best called
Show the answer
Answer: B. affirmative action.. Actively recruiting and promoting qualified members of underrepresented groups to correct past imbalance is affirmative action.
The trap: A glass ceiling is the invisible barrier that blocks advancement. It is the problem such policies try to fix, not the policy itself.
Actively recruiting and promoting qualified members of underrepresented groups to correct past imbalance is affirmative action.
The trap: A glass ceiling is the invisible barrier that blocks advancement. It is the problem such policies try to fix, not the policy itself.
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Question 10 · Functions of Business
A snack company pays for a survey and tastings to learn what flavors teenagers want before it develops a new chip. This approach reflects the
Show the answer
Answer: D. marketing concept. The marketing concept starts with finding out what customers want and then delivering it.
The trap: Selling orientation is tempting, but it pushes products the firm already makes rather than starting with customer needs.
The marketing concept starts with finding out what customers want and then delivering it.
The trap: Selling orientation is tempting, but it pushes products the firm already makes rather than starting with customer needs.
The DSST Introduction to Business exam at a glance
The DSST Introduction to Business exam is a 120-minute, computer-based test from Prometric with about 100 multiple-choice questions. A score of 400 on the 200–500 scale earns an ACE credit recommendation of 3 semester hours, though each college sets its own policy. The exam covers 3 content areas; the heaviest is Functions of Business at 50%.
- Questions
- About 100multiple choice
- Time
- 120 minabout 72 seconds a question
- Passing score
- 400on a 200–500 scale
- ACE credit
- 3semester hours
- Exam fee
- $100paid to Prometric
- Calculator
- Nonot allowed
What the exam covers
3 areas, heaviest first. The guide's chapters follow this order.
- Functions of Business50%
- Foundations of Business30%
- Business and Social Responsibility20%
How it works
- 1Buy once, $5Secure checkout. No subscription needed.
- 2Download the PDFFrom your TransferCredit.org account, right away and any time later.
- 3Study the heaviest areas firstFollow the 2-, 4- or 8-week plan, then read the cram sheet the night before.
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