IB BUSINESS MANAGEMENT PAPER 1
PRACTICE MAY 2026 PRE-RELEASE
COMPLETE STUDY GUIDE AND CASE STUDY
REVIEW
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales Included
,Why is ABC's move into e-waste an example of ABC was originally a concrete producer, but it has moved into recovering
diversification? precious metals from electronic waste, which is a different business activity.
Explain one reason why ABC might diversify. Diversification can reduce risk because ABC will no longer depend only on the
construction industry for revenue.
What is a stakeholder? A stakeholder is any individual or group that has an interest in or is affected by a
business's decisions.
Name two stakeholders of ABC's e-waste factory. Shareholders and employees are two stakeholders of ABC's e-waste factory.
How might shareholders benefit from the new factory? If the e-waste factory is profitable, shareholders may gain through higher
dividends and rising share prices.
How might the local community benefit from the new The factory may create jobs and reduce environmental damage by diverting e-
factory? waste from landfill.
How might employees be affected by the new factory? Employees may gain new job opportunities and specialist training, but they may
also face pressure to meet technical and safety standards.
What is corporate social responsibility (CSR)? CSR is the idea that businesses should consider social and environmental impacts,
not just profit.
How does ABC show CSR? ABC's room-temperature process reduces carbon emissions and helps recycle
electronic waste that would otherwise go to landfill.
What is a stakeholder conflict that ABC may face? Shareholders may want quick profits, while environmental groups may prefer ABC
to prioritize sustainability even if profits are lower in the short term.
What is a PEST analysis? A PEST analysis examines Political, Economic, Social, and Technological external
factors affecting a business.
Give one political factor relevant to ABC. Government regulations on recycling and waste disposal could affect ABC's
supply of e-waste and operating costs.
Give one economic factor relevant to ABC. Changes in world gold prices will affect the revenue ABC earns from selling
recovered gold.
Give one social factor relevant to ABC. Greater public concern about sustainability may increase support for businesses
that recycle e-waste responsibly.
, Give one technological factor relevant to ABC. The success of ABC depends on maintaining and improving its innovative room-
temperature recovery process.
What is internal growth? Internal growth is expansion using a business's own resources rather than through
mergers or acquisitions.
Is ABC's new factory an example of internal growth? Yes, because ABC developed the technology itself and opened its own
processing factory.
What is a SWOT analysis? A SWOT analysis identifies a business's strengths, weaknesses, opportunities, and
threats.
Give one strength of ABC in the case. ABC has innovative scientific capability because its researchers discovered a new
way to recover precious metals at room temperature.
Give one weakness of ABC in the case. ABC has less experience in the precious metals market than in concrete
production.
Give one opportunity for ABC in the case. The huge global volume of e-waste provides ABC with a potentially large long-
term source of raw material.
Give one threat for ABC in the case. Competitors may copy or develop similar technology, reducing ABC's competitive
advantage.
What is recruitment? Recruitment is the process of attracting and selecting suitable employees for a
business.
Why might ABC need to recruit new staff? ABC may need scientists, engineers, and technicians with specialist knowledge of
e-waste processing and metals recovery.
Should ABC recruit externally or retrain existing workers? External recruitment may bring specialist expertise quickly, while retraining
existing staff may be cheaper and improve loyalty; a mix of both may be best.
PRACTICE MAY 2026 PRE-RELEASE
COMPLETE STUDY GUIDE AND CASE STUDY
REVIEW
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales Included
,Why is ABC's move into e-waste an example of ABC was originally a concrete producer, but it has moved into recovering
diversification? precious metals from electronic waste, which is a different business activity.
Explain one reason why ABC might diversify. Diversification can reduce risk because ABC will no longer depend only on the
construction industry for revenue.
What is a stakeholder? A stakeholder is any individual or group that has an interest in or is affected by a
business's decisions.
Name two stakeholders of ABC's e-waste factory. Shareholders and employees are two stakeholders of ABC's e-waste factory.
How might shareholders benefit from the new factory? If the e-waste factory is profitable, shareholders may gain through higher
dividends and rising share prices.
How might the local community benefit from the new The factory may create jobs and reduce environmental damage by diverting e-
factory? waste from landfill.
How might employees be affected by the new factory? Employees may gain new job opportunities and specialist training, but they may
also face pressure to meet technical and safety standards.
What is corporate social responsibility (CSR)? CSR is the idea that businesses should consider social and environmental impacts,
not just profit.
How does ABC show CSR? ABC's room-temperature process reduces carbon emissions and helps recycle
electronic waste that would otherwise go to landfill.
What is a stakeholder conflict that ABC may face? Shareholders may want quick profits, while environmental groups may prefer ABC
to prioritize sustainability even if profits are lower in the short term.
What is a PEST analysis? A PEST analysis examines Political, Economic, Social, and Technological external
factors affecting a business.
Give one political factor relevant to ABC. Government regulations on recycling and waste disposal could affect ABC's
supply of e-waste and operating costs.
Give one economic factor relevant to ABC. Changes in world gold prices will affect the revenue ABC earns from selling
recovered gold.
Give one social factor relevant to ABC. Greater public concern about sustainability may increase support for businesses
that recycle e-waste responsibly.
, Give one technological factor relevant to ABC. The success of ABC depends on maintaining and improving its innovative room-
temperature recovery process.
What is internal growth? Internal growth is expansion using a business's own resources rather than through
mergers or acquisitions.
Is ABC's new factory an example of internal growth? Yes, because ABC developed the technology itself and opened its own
processing factory.
What is a SWOT analysis? A SWOT analysis identifies a business's strengths, weaknesses, opportunities, and
threats.
Give one strength of ABC in the case. ABC has innovative scientific capability because its researchers discovered a new
way to recover precious metals at room temperature.
Give one weakness of ABC in the case. ABC has less experience in the precious metals market than in concrete
production.
Give one opportunity for ABC in the case. The huge global volume of e-waste provides ABC with a potentially large long-
term source of raw material.
Give one threat for ABC in the case. Competitors may copy or develop similar technology, reducing ABC's competitive
advantage.
What is recruitment? Recruitment is the process of attracting and selecting suitable employees for a
business.
Why might ABC need to recruit new staff? ABC may need scientists, engineers, and technicians with specialist knowledge of
e-waste processing and metals recovery.
Should ABC recruit externally or retrain existing workers? External recruitment may bring specialist expertise quickly, while retraining
existing staff may be cheaper and improve loyalty; a mix of both may be best.
