IB Business Management definitions 2024

IB Business Management definitions 2024 Mission Statement - answerA positive statement setting out a business's core aims in order to motivate employees and engage the interest of external stakeholders. Cooperative - answerA group of individuals (workers, consumers or producers) working together to meet common goals. Corporate Social Responsibility (CSR) - answerRelates to the social, ethical, and environmental responsibilities identified by businesses & the strategies that they adopt to meet them. Public Sector Organization - answerOrganizations that are accountable to and controlled by central or local government/state Social Audit - answerAn optional, independently prepared, audit of an organisation's corporate social responsibility. Consumer cooperative - answerA group of consumers working together to meet common goals. Producer cooperative - answerA group of producers (such as farmers) working together to meet common goals. Partnership - answerTwo or more individuals conducting business activities, with responsibilities and profits shared between partners. Worker Cooperative - answerA group of workers operating together to meet common goals. Private Sector Business - answerBusinesses that are owned and controlled by an individual or groups of individuals PFI (Private Finance Initiative) - answerA Public Private Partnership which is financed by the private sector and operated by the public sector (the government is usually the costumer as well e.g. schools). Sole Trader - answerAn individual who operates as a business. The individual is legally identical to the business. Public Private Partnership - answerA partnership between a private sector business and a public sector organisation with shared responsibility of funding or managing of a project, with the aim of benefitting society. Vision statement - answerAn organisation's statement of an ideal world that the organisation is planning to grow into. Business Plan - answerA Business Plan sets out the business idea, aims and objectives, and should outline the business organisation and each of the four business functions: Finance, Marketing, Operations and Human Resources Stakeholder - answerAny individual, group or organisation that is directly or indirectly affected by the operations of a business. Shareholder - answerAn individual or organisation that owns shares in a limited liability company Corporate Objectives - answerA long term goal set by a corporation that allows it to achieve its aim. It is a goal for the entire corporate and is usually SMART. Limited Liability Company - answerA company where the owners and the company are separate legal entities; the owners are not responsible for the companies liabilities. Private Limited Companies (Itd.) - answerLimited liability companies, whose shares are traded in private transactions. (If an individual wants to buy shares they must find an existing shareholder and negotiate the price). Initial Public Offering - answerThe first time a public listed company offers shares for sale through a public stock exchange. Capital goods - answerThe man made goods required for the operation of a business (buildings, machinery). Financial capital - answerThe money needed to set up & sustain the operation of a business. For-profit Social Enterprise - answerBusiness that prioritise social objectives over maximising profit. Protectionism - answerUsing barriers to free trade, such as tariffs and quotas, to protect a country's domestic producers. Corporate Aim - answerLong-term goal for company. (Profit Maximization, growth, increase market share) Command/Planned Economy - answerEconomic resources are owned, planned, and controlled by the state (USSR for example). Free trade - answerA condition between nations that set no economic restrictions, such as tarrifs, on the products traded between them. Mixed Economy - answerAn economic system that consists of both government organisations and privately owned businesses. Share/stock - answerPart ownership of a company, entitling the shareholder to dividends and certain shareholder rights. Globalisation - answerThe growing integration of individuals and societies through increased freedom of global movement of goods, capitals and people. Entrepreneur - answerA person who starts a business, providing finance and direction/leadership. Public Limited Companies (plc.) - answerLimited liability companies, whose shares are traded on public stock exchanges, such as NYSE. Any individual can buy shares at the current price, which change constantly to represent the supply and demand of shares. Franchise - answera business that uses the name, logo and trading systems of an existing successful business in return for a combination of up front and royalty payments. Land - answerNaturally occurring resources and materials Free Market - answerThe economic resources are owned and controlled by individuals instead of the state. intrapreneur - answersomeone within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through using entrepreneurial talents such as risk taking and innovation SMART target - answerSpecific, Measurable, Achievable, Relevant, Time-bound Strategy - answerA plan of action that communicates how to achieve a certain objective Employee Share Ownership Scheme - answerEmployees of a company are given, or can buy shares at a discount in the company in order to incentivize hard work Ansoff's Matrix - answerIs a matrix which categorizes growth strategies as Market Penetration, Market Development, Product Development or Diversification Stakeholder conflicts - answerA situation in which as one stakeholders objectives are achieved and another stakeholders objectives are negatively affected.