College-Level Examination Program (CLEP) Business Syllabus

Business syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Business in College-Level Examination Program (CLEP), not a summary of it.

1. 1

   Principles of Management

   4 topics

   • Foundations of Management
     • Management theories and history
     • Functions and roles of managers
   • Planning and Decision Making
     • Goal setting and strategy
     • Decision-making processes
   • Organizing and Staffing
     • Organizational structure and design
     • Human resource management
   • Leading and Controlling
     • Motivation and leadership
     • Communication and teams
     • Control systems
2. 2

   Principles of Marketing

   4 topics

   • Marketing Foundations
     • Marketing concept and environment
     • Consumer and business buyer behavior
   • Market Research and Segmentation
     • Marketing research process
     • Segmentation, targeting, positioning
   • The Marketing Mix
     • Product and branding
     • Pricing strategies
     • Promotion and advertising
     • Distribution channels
   • Global and Digital Marketing
     • International marketing
     • Digital and social media marketing
3. 3

   Financial Accounting

   4 topics

   • Accounting Concepts and the Cycle
     • Accounting principles and assumptions
     • The accounting equation
     • Journalizing and posting
   • Financial Statements
     • Income statement and balance sheet
     • Statement of cash flows
   • Assets, Liabilities, and Equity
     • Receivables and inventory
     • Plant assets and depreciation
     • Liabilities and stockholders' equity
   • Analysis and Interpretation
     • Financial ratio analysis
     • Adjusting and closing entries
4. 4

   Introductory Business Law

   4 topics

   • Legal Foundations
     • Sources of law and the court system
     • Constitutional and administrative law
   • Contracts
     • Formation and elements
     • Performance and breach
     • Sales and the UCC
   • Torts and Crimes in Business
     • Negligence and product liability
     • Business-related crimes
   • Business Relationships and Entities
     • Agency relationships
     • Business organizations
5. 5

   Information Systems

   4 topics

   • Foundations of Information Systems
     • Hardware and software
     • Data, information, and knowledge
   • Systems Development and Databases
     • Systems development life cycle
     • Database concepts
   • Networks and the Internet
     • Networking and telecommunications
     • E-commerce and the web
   • Security, Ethics, and Management
     • Information security and privacy
     • IS management and decision support

Business flashcards for College-Level Examination Program (CLEP)

21 of 59 cards from the Business deck — real questions with worked answers.

1. What are the four primary functions of management?

   Planning, Organizing, Leading, and Controlling.

2. According to Henri Fayol's management theory, what are the three types of managerial skills, and which is most important at top levels?

   Technical, human, and conceptual skills. Conceptual skills are most important at top (upper) management levels.

3. Distinguish between efficiency and effectiveness in management.

   Efficiency is doing things right (getting the most output from the least input/resources); effectiveness is doing the right things (achieving organizational goals).

4. In the planning hierarchy, how do strategic, tactical, and operational plans differ in time frame and scope?

   Strategic plans are long-term (3-5+ years) and organization-wide; tactical plans are medium-term and department-level; operational plans are short-term and focus on specific tasks/units.

5. What are the standard steps of the rational decision-making process?

   Identify the problem, identify decision criteria, weight the criteria, generate alternatives, evaluate alternatives, and select/implement the best alternative.

6. What is a SWOT analysis used for in planning?

   It assesses internal Strengths and Weaknesses and external Opportunities and Threats to inform strategy.

7. What is the difference between a programmed and a nonprogrammed decision?

   Programmed decisions are routine, repetitive, and handled by established rules/procedures; nonprogrammed decisions are novel, unstructured, and require unique judgment.

8. Define span of control in organizational design.

   The number of subordinates a manager can effectively supervise/directly oversee.

9. What is the difference between a tall and a flat organizational structure?

   A tall structure has many hierarchical levels with narrow spans of control; a flat structure has few levels with wide spans of control.

10. Distinguish between centralization and decentralization of authority.

    Centralization concentrates decision-making authority at the top; decentralization pushes decision-making authority down to lower levels.

11. What are the basic steps in the human resource staffing process?

    Recruitment, selection, orientation/onboarding, training and development, performance appraisal, and compensation/retention.

12. According to Maslow's hierarchy of needs, what are the five levels from lowest to highest?

    Physiological, safety, social (belonging), esteem, and self-actualization.

13. In Herzberg's two-factor theory, what is the difference between hygiene factors and motivators?

    Hygiene factors (pay, working conditions) prevent dissatisfaction but don't motivate; motivators (achievement, recognition, responsibility) create true job satisfaction and motivation.

14. Contrast Theory X and Theory Y assumptions about workers (McGregor).

    Theory X assumes workers dislike work and need control/coercion; Theory Y assumes workers are self-motivated, seek responsibility, and enjoy work.

15. What are the four basic steps in the control process?

    Establish standards, measure actual performance, compare performance to standards, and take corrective action.

16. What is the marketing concept?

    A business philosophy holding that an organization should focus on identifying and satisfying customer needs/wants (better than competitors) while achieving organizational goals.

17. What are the four 'utilities' that marketing creates for customers?

    Form, time, place, and possession utility.

18. Define the marketing mix (the 4 Ps).

    Product, Price, Place (distribution), and Promotion.

19. What is the difference between primary and secondary data in market research?

    Primary data is collected firsthand for the specific research project (surveys, experiments); secondary data already exists and was gathered for another purpose (census, industry reports).

20. What are the four main bases used to segment a consumer market?

    Geographic, demographic, psychographic, and behavioral segmentation.

21. What does the marketing process of STP stand for?

    Segmentation, Targeting, and Positioning.

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