A good test in commerce should have the following characteristics:
(i) Validity: The test should be valid. It should fulfill the objectives for which it is meant. If our aim is to measure the ability V understand and application of commercial facts then language difficulty and speed should not come in way. Thus it should be free fron1 defects that are likely to affect the valid results.
(ii) Reliability. Its test is considered to be reliable if it gives same results every times when it is used for testing the individual abilities under same conditions. An objective test is bound to be reliable.
The reliability of a test is -affected by the following factors, to be reliable it should be free from:
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(a) The whims of an examiner.
(c) The language of the questions-lack of clearness or any ambiguities in statements.
(d) Lack of clear-cut instructions for marking
(e) Inefficient methods of scoring.
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A reliable test is not influenced by subjective conditions, it is objective.
(iii) Comprehensiveness. Any good test should be comprehensive i.e. it should assess knowledge, skills, abilities, attitudes etc. as adequately as possible. No aspect of the curriculum should be ignored while making evaluatation.
(iv) Administrable: It should be easy to administer, economical in time and money, easy to score and interpret. The directions of the test should be clear-cut. There should be answer-keys for scoring.
(v) Capable of Maintaining the Interest of the Students. Any good test should be able to capture the interest of the students and maintain it. Thus it should be interesting for the students. A good test is motivating for the students and stimulates their best efforts. It should be neither too easy nor too difficult. It should never be used as a means of punishment.
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(vi) Diagnosticity. A good test is diagnostic. The aim of diagnostic is to analyse the difficulties of a students in a particular phase of work. The aim is to reveal reliable information concerning his weakness in order to overcome them by concentrated action and for remedial teaching In this way it would help the teacher to guide them properly and adopt remedial measures to eliminate their weak points.
(vii) Utility. A good test is useful in various ways. For example a test result may be used for improvement of teaching, may be useful to measure some desired quality/ability in the student, useful in finding out deficiencies in pupils so that remedial measures be taken up for their removal etc.