Using Item Set Exams to Assess Higher Order Learning in a Corporate Finance Course

Although the item set exam format is used extensively in professional certification exams, it has not been widely adopted in academia. The item set exam can be viewed as an alternative to multiple choice exams or essay exams, sharing some of the strengths and weaknesses of both formats. An item set essentially is a minicase, a short written case followed by several multiple choice questions (items) based on the case. This paper describes some of the practical issues a professor will confront in developing and using effective item sets. To be concrete, we provide several examples of item sets that might be suitable to use in an undergraduate or beginning MBA corporate finance course