DSST® practice test

Free DSST Introduction to Business Practice Test (2026)

This is a set of 25 original practice questions that follow the official DSST Introduction to Business content outline and its topic weights, each with a short explanation. Answer all 25, then read the explanations to see which topics need more study.

  • 25 questions
  • 3 topics from the official outline
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The practice test

25 questions

Question 1 of 25To cool high inflation, Congress raises income taxes and cuts government spending. Which policy is this?
Question 2 of 25According to Herzberg's two-factor theory, what is the effect of improving pay and working conditions?
Question 3 of 25A job analysis produces a written list of a position's tasks, duties and responsibilities. What is this document called?
Question 4 of 25A government allows no more than 100,000 imported cars into the country each year. Which trade barrier is this?
Question 5 of 25A store manager sets next week's staff schedule and the daily sales targets for each department. Which type of planning is this?
Question 6 of 25Which quality management approach uses statistical methods to cut defects to no more than 3.4 per million opportunities?
Question 7 of 25Federal antitrust laws such as the Sherman Act are designed mainly to:
Question 8 of 25A product category's sales have leveled off, most buyers already own the product, and rival brands compete mainly through price cuts and small feature changes. Which stage of the product life cycle is this?
Question 9 of 25A firm has current assets of $90,000 and current liabilities of $60,000. What is its current ratio?
Question 10 of 25A frost destroys much of the year's orange crop, while consumers' desire for oranges stays the same. What happens in the orange market?
Question 11 of 25A company buys a $20,000 machine and pays for it in cash. How does this affect the accounting equation (assets = liabilities + owners' equity)?
Question 12 of 25A small firm pays a monthly fee to use accounting software that runs in the provider's data center and is reached through a web browser. Which model is this?
Question 13 of 25In a general partnership, one partner signs a $90,000 supply contract that the business cannot pay. Who can creditors hold responsible for the debt?
Question 14 of 25A car maker arranges for parts to arrive at the assembly line only as they are needed, so that it holds very little inventory. Which approach is this?
Question 15 of 25A business invests $1,000 at 5% interest compounded once a year. How much will it have after 2 years?
Question 16 of 25In Carroll's pyramid of corporate social responsibility, which responsibility forms the base on which the others rest?
Question 17 of 25Which of the following is a form of indirect compensation?
Question 18 of 25An industry is dominated by a few large firms, and each firm must watch and react to the others' pricing decisions. Which market structure is this?
Question 19 of 25In return for an upfront fee and ongoing royalties, what does a franchisee mainly receive?
Question 20 of 25Which view holds that a company's only social responsibility is to maximize profits for its shareholders while obeying the law?
Question 21 of 25If the US dollar becomes stronger against the euro, what tends to happen to trade between the United States and Europe?
Question 22 of 25A travel company divides its market into groups such as adventure seekers and comfort-focused travelers, based on lifestyle, values and personality. Which type of segmentation is this?
Question 23 of 25Which way of raising money gives investors part ownership of the company but carries no promise that the money will be repaid?
Question 24 of 25Which way of entering a foreign market gives a company the most control over its operations there, but also the largest investment and risk?
Question 25 of 25Two friends are starting a business. They want their personal savings protected from the business's debts, and they want profits taxed only once, on their personal returns. Which form of ownership fits best?

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