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Section 3: Overview and Exam Framework
Business and Finance 6–12 (276)

Exam Overview

Table outlining the test format, number of questions, time, and passing score.
Exam Name Business and Finance 6–12
Exam Code 276
Time 5 hours
Number of Questions 100 selected-response questions
Format Computer-administered test (CAT)

The TExES Business and Finance 6–12 (276) exam is designed to assess whether an examinee has the requisite knowledge and skills that an entry-level educator in this field in Texas public schools must possess. The 100 selected-response questions are based on the Business and Finance 6–12 exam framework and cover grades 6–12. The exam may contain questions that do not count toward the score. Your final scaled score will be based only on scored questions.

The Standards

Standard I

The business and finance teacher understands and applies knowledge of accounting, record keeping, banking, financial systems; securities and investments.

Standard II

The business and finance teacher understands and applies knowledge of personal finance and financial planning.

Standard III

The business and finance teacher understands and applies principles related to business management, operations, and ownership in e-commerce, domestic and international business.

Standard IV

The business and finance teacher understands and applies knowledge of economic systems.

Standard V

The business and finance teacher understands and applies knowledge related to personal and commercial insurance.

Standard VI

The business and finance teacher understands and applies principles related to laws and ethics affecting business.

Standard VII

The business and finance teacher understands and applies principles and methods related to the operation of a broad range of business computer information systems.

Standard VIII

The business and finance teacher understands and applies knowledge of interpersonal, leadership, and professional career-development skills for the business and finance industry.

Standard IX

The business and finance teacher knows how to advise and assist students in career planning and how to promote students development through work-based learning and participation in career and technical student organizations such as BPA/FBLA.

Standard X

The business and finance teacher knows how to organize and manage an effective business and finance education program and how to work with school, community, and industry representatives to support the program.

Standard XI

The business and finance teacher knows how to plan, implement and utilize instruction and student assessment, including academic integration.

Domains and Competencies

Table outlining test content subject weighting by domain.
Domain Domain Title Approx. Percentage of Exam Standards Assessed
I Finance 20% Business and Finance 6–12: I–II, IV–V
II Business Management 19% Business and Finance 6–12: III
III Ethics, Law, Business Communication and International Business 22% Business and Finance 6–12: III, VI
IV Technology and Information Systems 21% Business and Finance 6–12: VII
IV Leadership and Career Development 18% Business and Finance 6–12: VIII–XI
Pie chart of approximate test weighting, detailed in the table above.

The content covered by this exam is organized into broad areas of content called domains. Each domain covers one or more of the educator standards for this field. Within each domain, the content is further defined by a set of competencies. Each competency is composed of two major parts:

Domain I—Finance

Competency 001—The teacher understands and applies knowledge of money matters.

The beginning teacher:

  1. Understands career-planning concepts, tools and strategies for pursuing a career in financial planning.
  2. Understands economic systems and their history, including the role of risk, private enterprise, market structures, types of currency, global integration and the Constitution of the United States.
  3. Knows how to explain the impact of taxes and monetary and fiscal policy on a free-enterprise system.
  4. Understands the function of prices and the concept of economic resources.
  5. Understands economic indicators that affect financial decision making (price stability, consumer spending, unemployment, inflation, interest rates, the business cycle and gross domestic product).
  6. Knows how to assess the impact of exchange rates and cultural and social environments.
  7. Understands the foreign exchange market and its economic determinants.
  8. Applies sociological and psychological concepts to facilitate collaborative activities.
  9. Knows how to assess personal financial needs and goals based on current and projected economic conditions.
  10. Knows how to manage personal finances (budgets, savings and investment, credit, and taxes) to achieve financial goals.
  11. Understands the use and responsibilities of financial-service providers.
  12. Knows how to compare and contrast investment strategies.
  13. Knows how to identify potential business threats and opportunities.
  14. Knows how to acquire and manage personal credit (e.g., student loans and car loans).
  15. Knows how to ensure solvency by using budgets, financial statements and cost-benefit analyses to manage financial resources.
  16. Understands the function of financial markets.
  17. Understands the theory and application for efficient financial markets.
  18. Understands how debt and equity are used to raise capital.
Competency 002—The teacher understands and applies knowledge of banking and financial services.

The beginning teacher:

  1. Understands the fundamentals of banking and financial services, including bankruptcy, mergers and acquisitions.
  2. Knows how to evaluate the role of global banking in the modern economy including the roles of the Federal Reserve Bank and other financial institutions.
  3. Understands banking processes and services, including security and risk management.
  4. Understands the roles and responsibilities of positions in the banking services industry, including educational requirements.
  5. Understands how to influence current and future business by identifying and meeting client needs.
  6. Understands how to manage day-to-day activities in order to ensure secure business operations involving the Federal Reserve System, loan underwriting and real estate.
  7. Understands how laws and regulations (e.g., regulatory changes and bankruptcy law) affect business operations and transactions in the banking-services industry.
  8. Knows how financial institutions build positive customer relationships (including giving lectures, seminars, and forums) that enhance their image.
  9. Understands how to leverage financial resources to enhance banking performance.
  10. Understands the purpose of and knows how to utilize banking information systems.
Competency 003—The teacher understands and applies knowledge of securities and investments.

The beginning teacher:

  1. Understands the fundamentals of securities and investments.
  2. Knows how to utilize financial resources effectively to discharge duties and responsibilities.
  3. Understands how a broad array of securities information can be used to identify viable investments.
  4. Knows how to select client investments and calculate asset values.
  5. Understands how businesses manage day-to-day securities and investments operations to ensure optimal business functioning.
  6. Understands the use of career-planning concepts, tools and strategies to pursue a securities and investments career.
  7. Identifies licensing and certification programs in the financial services business.
  8. Understands the acquisition and sale of securities, real estate and other investments.
Competency 004—The teacher understands and applies knowledge of insurance operation.

The beginning teacher:

  1. Demonstrates a comprehensive understanding of the insurance industry and its role in society.
  2. Knows how to describe careers in insurance.
  3. Understands practices that ensure compliance with insurance industry regulations.
  4. Understands legal concepts pertinent to the insurance industry.
  5. Knows how to assess the risk posed by potential clients in order to make informed approval and denial decisions.
  6. Understands how to use information technology tools effectively to underwrite an insurance policy.
  7. Knows how to use information and investigative techniques to identify fraud.
  8. Understands how agency and company policies are managed, to ensure a firm’s financial well-being.
  9. Knows how to effectively process a claim consistent with client obligations.
  10. Knows how to evaluate current client insurance policies and risk-management needs.
Competency 005—The teacher understands and applies knowledge of basic accounting.

The beginning teacher:

  1. Applies basic accounting concepts (e.g., accounting cycle, T-accounts).
  2. Understands how accounting systems can ensure the fiscal stability of businesses.
  3. Understands how career-planning concepts, tools and strategies can be used to explore accounting careers.
  4. Utilizes equations, graphical representations, accounting tools, strategies and systems in real-world situations to manage financial resources.
  5. Understands how accounting procedures affect financial statements.
  6. Knows how to maintain cash controls (including petty cash).
  7. Understands how accounting is used in a merchandising business.
  8. Knows how to manage accounts payable and accounts receivable.
  9. Understands how inventory records are maintained and how they are used to track the location, quantity and value of current assets.
  10. Understands payroll procedures required to calculate, record and distribute payroll earnings.
  11. Understands how to track cash flow regarding articles of incorporation, balance sheets and income statements, equity and retained earnings, and dividends.
  12. Understands statutory and regulatory constraints on managing business operations and transactions.
  13. Knows how to gather and utilize financial information to enhance decision making.
Competency 006—The teacher understands and applies knowledge of advanced accounting.

The beginning teacher:

  1. Demonstrates how to use equations, graphical representations, accounting tools, strategies and systems to manage financial resources.
  2. Understands the use of statistic analysis (probability, confidence intervals, etc.) to assess business opportunities.
  3. Understands corporate and managerial accounting functions.
  4. Understands how to utilize accounting procedures in equity and fixed income transactions.
  5. Understands the role of accounting in financial statement analysis.
  6. Understands how to prepare budget reports that enhance decision making.
  7. Understands the regulatory requirements for managing business operations and can discuss recent examples of mismanagement.
Competency 007—The teacher understands and applies knowledge of financial analysis to solve problem.

The beginning teacher:

  1. Understands and demonstrates a thorough understanding of the tools and application of financial analysis.
  2. Understands how accounting systems ensure the fiscal stability of businesses.
  3. Understands tools, strategies and systems used to manage financial resources to ensure solvency.
  4. Demonstrates mathematical knowledge and skills required to pursue the full range of postsecondary education and career opportunities.
  5. Knows how to use financial ratios to assess company performance.
  6. Understands the use of financial statement analysis.
  7. Employs critical-thinking skills independently and in teams.
  8. Understands the role of information technology and its mission-critical applications.
Competency 008—The teacher uses probability calculations to anticipate and forecast expected outcomes and manage risk.

The beginning teacher:

  1. Understands and can apply the fundamentals of probability to solve business problems.
  2. Understands how career-planning concepts, tools and strategies can be used to explore a career in risk management.
  3. Demonstrates an understanding of how financial resources (such as capital budgeting, depreciation, cash flows, net present value, asset management and restructuring) are used to limit risk and to ensure business stability.
  4. Understands how businesses employ enterprise risk-management strategies and corporate finance techniques to minimize their business loss.
  5. Knows how to select financial information to be used in statistical tools (e.g., confidence intervals, probability models) to enhance risk management.

Domain II—Business Management

Competency 009—The teacher understands types of business ownership and entrepreneurial skills and procedures.

The beginning teacher:

  1. Understands types of business ownership and their characteristics (e.g., sole proprietorships, partnerships, corporations, centralized versus decentralized, retail versus wholesale, franchises).
  2. Understands procedures for creating and carrying out business plans.
  3. Knows how to identify entrepreneurial opportunities and the benefits and liabilities of starting a business.
  4. Understands and implements basic marketing concepts, functions, methods and promotion (advertising, including event-based selling and visual merchandising).
  5. Understands and implements demand management strategies (e.g., inventory management).
  6. Knows how to manage day-to-day activities to ensure efficient purchasing and quality control.
  7. Understands procedures for determining financial start-up projections and methods for generating various types of capital.
  8. Understands the changing nature of business (e.g., technological changes, cultural diversity, global resources and competition).
  9. Applies knowledge of financial accounting to evaluate alternative business options and make good business decisions.
  10. Compares business financing opportunities and investments and understands the services provided by banks and financial institutions.
  11. Knows how to use research techniques effectively to identify and utilize information.
Competency 010—The teacher understands the principles of management in a business environment.

The beginning teacher:

  1. Knows the history and understands the role of management.
  2. Understands the effective application of various functions of management (e.g., planning, organizing, leading, controlling, staffing and project management).
  3. Understands and can apply various management and motivational theories, including the management pyramid.
  4. Understands the selling process and market structures (e.g., brick-and-mortar, hybrid, e-commerce).
  5. Understands the theory and application of quality management.
  6. Applies social and behavioral theories and principles to analyze group structures and behaviors.
  7. Knows how to evaluate leadership styles and their effectiveness in addressing various business needs and goals.
  8. Knows how to evaluate management practices that promote flexibility and adaptability in a global business environment.
  9. Knows how to conduct technical research to secure information necessary for decision making.
Competency 011—The teacher understands human relations and resource management.

The beginning teacher:

  1. Understands how to plan, staff and organize human resources to enhance productivity and satisfaction.
  2. Understands the role of human relations and resource management and can apply basic principles and procedures of global human resource planning.
  3. Understands how to implement a compensation system.
  4. Understands the legal and regulatory requirements of a compensation program.
  5. Understands how to implement different types of compensation (e.g., pay for performance, hourly pay, salaried pay).
  6. Understands the economic and social benefits of a well-designed workplace.
  7. Understands the role of organized labor and its influence on business, including collective bargaining, grievance and arbitration.
  8. Understands the balance between employee privacy rights and employer obligations to provide a safe working environment.
  9. Recognizes and applies methods of employee recruitment and selection, staff evaluation and employee training and development in accordance with state and federal regulations (e.g., Equal Employment Opportunity Act, Americans with Disabilities Act).
  10. Understands factors that affect productivity (e.g., interaction of people and technology, employee attitudes and motivation).

Domain III—Ethics, Law, Business Communication and International Business

Competency 012—The teacher understands issues related to ethics and social responsibility in business and personal behavior.

The beginning teacher:

  1. Understands the role of personal and business ethics in both conventional and cyber behavior (e.g., distinguishes between ethical and legal choices and ethical and unethical choices).
  2. Analyzes ethical considerations of business situations.
  3. Understands the social responsibilities of businesses regarding the environment, health, safety and diversity.
  4. Recognizes the connection between good public relations and a community’s perception of ethical standards in business, and analyzes factors affecting decisions.
Competency 013—The teacher understands principles of business law.

The beginning teacher:

  1. Knows the legal requirements for forming, operating and dissolving different types of businesses.
  2. Understands statutory restrictions on retail and commercial sales, including e-commerce (e.g., Federal Trade Commission Act, the Uniform Commercial Code).
  3. Understands the nature and significance of contracts, torts and crimes.
  4. Understands employee and consumer statutory rights and protections (e.g., consumer protection laws, Americans with Disabilities Act, organized labor laws, workplace safety legislation).
  5. Understands how different jurisdictions influence different legal issues in business situations (e.g., the legal responsibility of individuals for the acts of a business organization, issues related to trademark and copyright laws).
  6. Understands the role of government regulations in the workplace (e.g., Environmental Protection Agency (EPA), Occupational Safety and Health Administration (OSHA).
  7. Knows how to use appropriate online technology to research cases dealing with relevant business-related cases.
Competency 014—The teacher understands basics of international business.

The beginning teacher:

  1. Knows how to identify multicultural business opportunities and competitive factors that affect the global business environment (e.g., social, cultural, political, legal, geographic and economic factors).
  2. Understands the potential impact of changes in currency exchange rates, inflation and interest rates.
  3. Understands the structure and purpose of the European Union and the relationship between international trade and the global economy.
  4. Recognizes major trends and developments in international business.
  5. Understands the relationship between foreign trade and taxation policy and tariffs.
Competency 015—The teacher understands basic elements of communication and applies skills for effective communication in business contexts.

The beginning teacher:

  1. Understands basic elements of effective business communication (e.g., communication process; barriers to communication; communication channels, including social media; issues of cross-cultural business transactions) as well as how to nurture customer relationships by communicating effectively.
  2. Engages in appropriate oral, written, nonverbal and visual communication such as presentations and videoconferencing (including tables, graphs and charts).
  3. Knows how to input data and produce documents effectively.
  4. Uses current and emerging technologies to produce business documents.
  5. Knows how to use references and appropriately documents information from secondary sources.

Domain IV—Technology and Information Systems

Competency 016—The teacher understands, applies fundamentals of, and effectively uses computer systems.

The beginning teacher:

  1. Navigates networks effectively to locate and exchange information.
  2. Knows how to employ document-creation software to create and publish business-related documents (e.g., instructional manuals, business brochures).
  3. Understands how operating systems perform a variety of tasks (e.g., organizing and maintaining files, exporting data).
  4. Understands options and procedures for exchanging information via telecommunications software (e.g., appropriate telecommunications methods for different situations, correct etiquette when using telecommunications).
  5. Knows how to implement procedures for producing business documents using current and emerging technology (e.g., uses document-creation, spreadsheet and database software; uses correct proofreading symbols and procedures; produces reports containing text and graphics).
  6. Understands health, ergonomic and safety issues related to the use of computer technology.
  7. Understands the use of multiplatform design software to develop websites.
  8. Applies procedures for importing graphics, sound, video and text into documents to produce multiplatform presentation products.
  9. Applies skills for researching and developing effective business presentations (such as multimedia presentations) that use a variety of sources, including big data.
Competency 017—The teacher understands terminology and principles related to information technology.

The beginning teacher:

  1. Understands computer terminology and concepts.
  2. Knows how to effectively select, evaluate, install and upgrade computer hardware and software.
  3. Understands how to identify emerging technologies and potential trends.
  4. Understands the role of information technology in specific business contexts (e.g., product design, procurement, manufacturing, sales and marketing, inventory, product delivery, customer service, finance).
  5. Knows how to manage computer assets (e.g., developing a technology plan, troubleshooting and repairing software and hardware, customizing software, evaluating software and hardware, keeping an inventory of computer components and peripherals).
Competency 018—The teacher understands principles and procedures related to information management systems and information technology applications.

The beginning teacher:

  1. Understands the nature and role of e-commerce.
  2. Knows how to create and manage an online business.
  3. Applies skills for managing information (e.g., maintaining systems for document and information storage, including the cloud, and retrieval; developing and maintaining systems for electronic filing).
  4. Solves business problems by utilizing information technology (e.g., word processing applications, spreadsheets, databases, multimedia, web design, computer programming and graphic design).
  5. Understands the impact of information and communication technology on business and society.
  6. Applies database technology to manipulate (e.g., store, query, retrieve) data and to design databases for solving business problems.
  7. Employs data-mining methods to identify and evaluate trends and patterns to improve business decision making.
Competency 019—The teacher understands principles and procedures related to confidentiality, security and data integrity associated with computer technology.

The beginning teacher:

  1. Identifies social, ethical, and legal issues relevant to confidentiality (e.g., cybercrimes and identity theft).
  2. Understands issues and procedures for maintaining data security. (e.g., firewalls, virus protection software).
  3. Understands procedures for ensuring the accuracy and integrity of data.

Domain V—Leadership and Career Development

Competency 020—The teacher understands work-based learning, career development, and leadership opportunities.

The beginning teacher:

  1. Understands how to link classroom learning with work-based learning and incorporate relevant experiences into the business curriculum.
  2. Understands the laws and regulations relating to employment, including Equal Employment Opportunity Commission (EEOC) rules and safety regulations and procedures.
  3. Knows how to assist in the implementation of work-based learning models (e.g., school organizations, mentoring, networking, job shadowing, career preparation, internships and externships).
  4. Knows how to evaluate student progress based on work-based standards and can analyze data to determine program effectiveness.
  5. Identifies career opportunities in business, as well as the education, industry certifications and training requirements one needs for such careers.
  6. Helps students transition from program completion to employment or higher education (e.g., résumé writing, practicing interview skills).
  7. Effectively communicates how personal attributes (e.g., reliability, diligence, punctuality, motivation, attitude, digital footprint) affect career advancement and success in the workplace.
Competency 021—The teacher knows how to employ interpersonal, employment, and organizational skills in business environments.

The beginning teacher:

  1. Knows how to apply the social and human relations skills and attitudes needed to work effectively in a culturally diverse business environment.
  2. Identifies procedures for carrying out administrative support responsibilities (e.g., scheduling, meeting planning and organization).
  3. Knows how to select, train and retain employees.
  4. Understands compensation systems and how they are implemented.
  5. Understands how to manage all facets of a benefits plan.
  6. Understands employee-management relations.
  7. Knows how to plan, staff, lead and organize a human resources group to enhance productivity and satisfaction.
  8. Knows how to assist with staff growth and development and trains staff on system usage.
  9. Implements initiatives to improve employee satisfaction.
Competency 022—The teacher understands the leadership and community service opportunities available through student organization activities and the importance of promoting a business education program.

The beginning teacher:

  1. Understands the purpose, characteristics and functions of student leadership organizations.
  2. Understands the roles of chapter advisors and their responsibilities to student organizations.
  3. Understands the importance of interacting with others in the school and community to promote a business education program (e.g., advisory committees, businesses, community agencies, postsecondary institutions, civic and service organizations, education and training organizations).
  4. Knows how to use a variety of sources and methods for developing and delivering appropriate business instruction (e.g., collaborating with other school faculty and external partners, identifying the impact of external influences and the requirements for special populations and evaluating performance standards).
  5. Understands the importance of participating in leadership and career-development activities.

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