When I think about creating a test, I begin by reviewing my lecture notes and related text material, and listing the concepts I have covered. Facts are the details used to test for understanding. They are important, but meaningful only in context. For example, if you are trying out for the local soccer team, you are having a practical test. Oral exams are particularly common in graduate school, where there are a series of questions about the student's research topic.
Oral exams can be similar to job interviews.
The latter include the classic university mid-term and final exams. They can be computer-graded, which is impartial and fast. Short answer questions might ask for a series of facts related to a particular concept. Generally they require analysis of a situation, and discussion of concepts and related facts. Answers may be one to several pages long.