Business Environment and Concepts

Business Environment and Concepts

Business Environment and Concepts
Exam Material
Exam Info

The Business Environment and Concepts (BEC) section of the CPA Exam tests CPA candidates’ understanding of business concepts and the significance of a CPA’s professional duties and responsibilities within the larger context of the business environment.
Areas covered on the BEC Exam are:

  1. corporate governance
  2. economic concepts and analysis
  3. financial management
  4. information systems and communications
  5. strategic planning and operations management.

Many CPA candidates consider BEC to be the easiest section of the CPA Exam. However, BEC pass rates have historically been only slightly higher than those for other sections, and the exam still requires a serious study effort.


  1. 17-27% Corporate Governance
    1. Internal control and enterprise risk management frameworks
    2. Other regulatory frameworks and provisions
  2. 17-27% Economic Concepts and Analysis
    1. Economic and business cycles
    2. Market influences on business
    3. Financial risk management
  3. 11-21% Financial Management
    1. Capital structure
    2. Working capital
    3. Financial valuation methods and decision models
  4. 15-25% Information Technology (IT)
    1. IT governance
    2. Role of IT in business
    3. Information security/availability
    4. Processing integrity (input/processing/output controls)
    5. Systems development and maintenance
  5. 15-25% Operations Management
    1. Cost measurement concepts, methods and techniques
    2. Variance analysis
    3. Process management
    4. Planning techniques
Exam Skills

Certification Exam: Business Environment and Concepts

Exam TypeCertification
Exam CodeBEC
Duration4 hours
Number Of Question62
Success Score75%
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Evaluation Exam: Business Environment and Concepts

Exam TypeEvaluation
Exam CodeBEC-eval
Duration1 hour, 30 minutes
Number Of Question30
Success Score75%
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