The performance of distant students in a simulation exercise for a Small Business Management (SBM) course was compared with that of internal students and the demographic and psychological variables associated with the performance of each student group were examined. Distant students matched or exceeded the performance of internal students in spite of the setbacks associated with distance learning. Work experience and rational information processing were associated with the performance of distant students but not with that of internal students. Distant students proved more able to achieve the multiple learning objectives of the course. Effective online interaction among students can help reduce the setbacks associated with independent learning for distant students and the work experience gap for internal students.