Many state and local entities are developing and using performance assessment programs. Because these initiatives are so diverse, it is very difficult to understand what they are doing, or to compare them in any meaningful way. Multiple-choice tests are contrasted with performance assessments, and preliminary classifications are suggested to promote understanding and provide an operational definition. The six suggested types of performance assessments are: (1) two-step problem solving with student constructed responses; (2) short, dichotomously scored answers provided by students; (3) short answers, essays, and "thought experiments" in which the nature of the response is up to students; (4) paper-and-pencil simulations that realistically mimic the actual environment; (5) simulations in realistic environments; and (6) evaluation in the actual environment. Five figures illustrate the discussion and provide sample problems. Six references are listed. (SLD)