The merits and hazards of minimum competency testing for the individual student or for student groups are discussed. Types of groups which lend themselves to group application and some important factors in determining the parameters of a group are discussed. Ten critical issues related to minimum competency testing are identified: (1) scope of curriculum designated as minimum; (2) levels of expected proficiency; (3) determination of mastery; (4) performance criteria expressed as absolute standards or as achievement gains; (5) type of test; (6) test length and testing time; (7) costs of testing program and personnel time; (8) utilization of test results; (9) test security; and (10) protection of student rights. The relative advantages of individual versus group testing, and the option not to employ minimum competency testing at all are examined in terms of utility analysis and of the resultant gains and losses. The merits of criterion-referenced, objective-based, and norm-referenced testing are compared, especially the sampling problems involved. Two cases of application of minimum competency testing to groups are presented: one at the state level (Texas) and one for a multi-county region. (Texas' Region 12). (Author/GDC)