foundations of finance

Foundations of Finance challenges members to demonstrate their understanding of core financial principles through an objective test. This event covers topics such as financial planning, budgeting, banking, investments, and the role of financial institutions in both personal and business contexts.

Event Overview

Division: Collegiate
Event Type: Individual
Event Category: Objective Test, 100-multiple choice questions (breakdown of question by competencies below)
Objective Test Time: 50 minutes

Educational Alignments

Items Competitor Must Provide: Pencil, Computer, Photo Identification, Attire that meets the Florida FBLA Dress Code
Items FBLA Must Provide: Test log-in information
This event is intended for students who are early in their collegiate academic journey and just beginning their study of finance. Only members who have completed no more than six credit hours on a semester schedule (or the equivalent number of quarter hours) of college-level finance coursework by May 1, 2027, are eligible to compete.

 Competencies

·         Corporate Finance Foundations
·         Personal Finance
·         Financial Services, Products, and Investments
·         Finanacial Markets
·         Financial planning and analysis
·         Corporate Financial Managment
·         Accounting Concepts
Test questions are based on the knowledge areas and objectives outlined for this event. Detailed objectives can be found in the study guide included in these guidelines.

State

Eligibility

·         FBLA membership dues are paid by 11:59 pm Eastern Time on February 1st of the current program year.

·         Members must be registered for the SLC and pay the state conference registration fee in order to participate in competitive events.

·         Members must stay within the official FBLA housing block of the official FBLA hotel to be eligible to compete.

·         Each chapter may submit one entry per event.

·         On the state level, each member can compete in up to three different events in the following combinations: three objective tests OR two objective tests and one presentation OR two objective tests and one production or one objective test and two production OR one objective test, one presentation, and one production. Students may enter the Christopher Heider, Rob Kelleher, Who’s Who event, and one Chapter event (Community Service, State of the Chapter) in addition to their above chosen events.

·         Picture identification (physical or digital: driver’s license, passport, state-issued identification, or school-issued identification) matching the conference nametag is required when checking in for competitive events.

·         If competitors are late for an objective test, they may be either disqualified or permitted to begin late with no extension of the time as scheduled. This is up to the discretion of the proctor.

·         Participants must adhere to the Florida FBLA dress code established by the Florida Board of Directors or they will not be permitted to participate in the competitive event.

Recognition

·         The number of competitors will determine the number of winners. The maximum number of winners for each competitive event on the state level is 4.

Event Administration

·         This event is an objective test administered prior to the SLC. Advisers will receive information regarding testing requirements.

·         No reference or study materials may be brought to the testing site.

·         No calculators may be brought into the testing site; online calculators will be provided through the testing software.

Scoring

·         Ties are broken by comparing the correct number of answers to the last 10 questions on the test. If a tie remains, answers to the last 20 questions on the test will be reviewed to determine the winner. If a tie remains, the competitor who completed the test in a shorter amount of time will place higher.

·         Results announced at the State Leadership Conference are considered official and will not be changed after the conclusion of the State Leadership Conference.

Americans with Disabilities Act (ADA)

·         FBLA complies with the Americans with Disabilities Act (ADA) by providing reasonable accommodations for competitors. Accommodation requests must be submitted through the conference registration system by the official registration deadline. All requests will be reviewed, and additional documentation may be required to determine eligibility and appropriate support.

Penalty Points

·         Competitors may be disqualified if they violate the Competitive Event Guidelines or the Honor Code.

Electronic Devices

·         Unless approved as part of a documented accommodation, all cell phones, smartwatches, electronic devices, and headphones must be turned off and stored away before the competition begins. Visible devices during the event will be considered a violation of the FBLA Honor Code.

National

Be sure to see the National guidelines at https://www.fbla.org/divisions/collegiate/pbl-competitive-events/

Study Guide: Knowledge Areas and Objectives

This study guide outlines the skills and knowledge assessed for this event. Objectives followed by a two-letter, three-digit code in parentheses are aligned to the National Business Administration Standards from MBA Research and Curriculum Center. Some objectives reference MBA Research’s Learning Activity Packages (LAPs), which are instructional resources with readings, activities, and assessments available exclusively to teacher advisers. For more information, visit MBAResearch.org/FBLA. 

Important Notice Regarding Test Preparation 

MBA Research materials are not required to study for or prepare for FBLA competitive event tests. MBA Research provides curriculum and instructional resources directly to teachers and does not administer or manage individual student testing or competition participation. 

Note for members and parents: All questions related to tests, study materials, scores, or competition guidelines should be directed to the local FBLA adviser. Only teacher advisers should contact MBA Research directly. 

Corporate Finance Foundations (10 test items)  

  1. Explain the role of finance in business (FI:354, LAP-FI-354) (CS)  

  2. Discuss the role of ethics in finance (FI:355, LAP-FI-355) (SP)  

  3. Explain legal considerations for finance (FI:356) (SP)  

  4. Explain the time value of money (FI:062) (CS)  

  

Personal Finance (15 test items)  

  1. Describe sources of income and compensation (FI:061) (CS)  

  2. Explain the purposes and importance of credit (FI:002, LAP-FI-002) (CS)  

  3. Set financial goals (FI:065) (CS)  

  4. Develop personal budget (FI:066) (CS)  

  5. Explain the need to save and invest (FI:270) (CS)  

  6. Calculate the cost of credit (FI:782) (CS)  

  7. Control debt (FI:568) (CS)  

  

Financial Services, Products, and Investments (15 test items)  

  1. Explain types of investments (FI:077, LAP-FI-077) (CS)  

  2. Establish investment goals and objectives (FI:079) (MN)  

  3. Describe types of financial-services providers (FI:075) (CS)  

  4. Discuss considerations in selecting a financial-services provider (FI:076) (CS)  

  5. Describe the concept of insurance (FI:081) (CS)  

  6. Determine insurance needs (FI:571) (SP)  

Financial Markets (15 test items)  

  1. Describe the role of financial institutions (FI:336) (CS)  

  2. Explain types of financial markets (e.g., money market, capital market, insurance market, commodities markets) (FI:337) (SP)  

  3. Discuss the nature of convergence/consolidation in the finance industry (FI:573) (SP)  

  4. Describe the relationship between economic conditions and financial markets (FI:574) (SP)  

  5. Explain the nature and scope of financial globalization (FI:575) (SP)  

  

Financial Planning and Analysis (15 test items)  

  1. Describe the nature of budgets (FI:106, LAP-FI-106) (SP)  

  2. Describe the nature of cost-benefit analysis (FI:357, LAP-FI-357) (MN)  

  3. Determine relationships among total revenue, marginal revenue, output, and profit (FI:358) (MN)  

  4. Develop company's/department's budget (FI:099, LAP-FI-099) (MN)  

  5. Forecast sales (FI:096) (MN)  

  6. Calculate financial ratios (FI:097) (MN)  

  7. Interpret financial statements (FI:102) (MN)  

  

Corporate Financial Management (15 test items)  

  1. Explain the nature of capital investment (FI:078) (SP)  

  2. Describe the nature of short-term financial management (FI:513) (SP)  

  3. Discuss the nature of long-term assets (e.g., tangible assets, intangible assets, natural resources) (FI:642) (SP)  

  4. Discuss factors to consider in choosing between debt and equity capital (FI:340) (MN)  

  5. Explain the significance of a firm's capital structure (FI:341) (MN)  

   

Accounting Concepts (15 test items)  

  1. Describe the need for financial information (FI:579, LAP-FI-579) (CS)  

  2. Explain the concept of accounting (FI:085, LAP-FI-085) (CS)   

  3. Discuss the nature of the accounting cycle (FI:342) (CS)  

  4. Distinguish among types of business transactions (FI:673) (CS)  

  5. Describe the nature of cash flow statements (FI:091, LAP-FI-091) (SP)   

  6. Explain the nature of balance sheets (FI:093, LAP-FI-093) (SP)   

  7. Describe the nature of income statements (FI:094, LAP-FI-094) (SP)