IB Business and Management -Only SL- Full Revision QUESTIONS WITH ANSWERS

IB Business and Management [Only SL]
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Full Revision QUESTIONS WITH
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ANSWERS

Added Value - CORRECT ANSWERS ✔✔The difference
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between a product's price and the total cost of the inputs
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that went into making it; the extra worth created in the
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production process. |\




Businesses - CORRECT ANSWERS ✔✔Organizations that |\ |\ |\ |\ |\ |\



are involved in the production of goods and/or the
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provision of services. |\ |\




Capital - CORRECT ANSWERS ✔✔All non-natural resources
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used in the production process; examples: money,
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resources (machinery, tools, equipment, factories).|\ |\ |\ |\




Division of Labor - CORRECT ANSWERS ✔✔The
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specialization of workers in the provision of goods and/or |\ |\ |\ |\ |\ |\ |\ |\ |\



services by breaking a job down into particular roles or
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components that are repeated by the same workers. |\ |\ |\ |\ |\ |\ |\




Entrepreneurs - CORRECT ANSWERS ✔✔People who |\ |\ |\ |\ |\ |\



manage, organize, and plan the other three factors of
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,production; risk takers who exploit business opportunities |\ |\ |\ |\ |\ |\ |\



in return for profits.
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Factors of Production - CORRECT ANSWERS ✔✔The inputs
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(or resources) necessary for the production process: land,
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labor, capital, and enterprise (aka entrepreneurship).
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Functional Areas - CORRECT ANSWERS ✔✔Refer to the |\ |\ |\ |\ |\ |\ |\ |\



different sections of a business, i.e. marketing,
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production, finance, and human resource departments. |\ |\ |\ |\ |\




Labor - CORRECT ANSWERS ✔✔The physical and mental
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human effort used in the production process.
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Land - CORRECT ANSWERS ✔✔Natural resources that can
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be found on the planet, including renewable and non-
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renewable natural resources such as water, fish, wood, |\ |\ |\ |\ |\ |\ |\ |\



and physical land itself.
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Opportunity Cost - CORRECT ANSWERS ✔✔The cost |\ |\ |\ |\ |\ |\ |\



measured in terms of the next best alternative that is |\ |\ |\ |\ |\ |\ |\ |\ |\ |\



foregone when a choice is being made, e.g. money today
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can be either spent for immediate benefit or saved for the
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future.
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,Primary Sector - CORRECT ANSWERS ✔✔The businesses
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involved in the cultivation or extraction of natural
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resources, such as farming, mining, quarrying, fishing, oil
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exploration, and forestry. |\ |\




Secondary Sector - CORRECT ANSWERS ✔✔The section of |\ |\ |\ |\ |\ |\ |\



the economy where business activity is concerned with
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the construction and manufacturing of physical products;
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automation and mechanization in modern societies has |\ |\ |\ |\ |\ |\ |\



seen this sector decline in terms of employment.
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Tertiary Sector - CORRECT ANSWERS ✔✔The section of
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the economy where business activity is concerned with
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the provision of services to customers; in modern
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societies, it is the largest sector in terms of employment
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and output. |\




Articles of Association - CORRECT ANSWERS ✔✔the
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document that sets out the internal organization and|\ |\ |\ |\ |\ |\ |\ |\



rules of a limited company, including the powers of each
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director and voting rules; a compulsory document needed
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to set up a company
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Certificate of Incorporation - CORRECT ANSWERS ✔✔the |\ |\ |\ |\ |\ |\ |\



document issued to a limited company to show that it has
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been legally formed and is therefore a separate legal
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, entity from its owners; this certificate allows the company
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to begin trading shares
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charities - CORRECT ANSWERS ✔✔not-for-profit
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organizations that are established to support good |\ |\ |\ |\ |\ |\ |\



causes, from society's point of view; examples include the
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prevention of animal cruelty, the preservation of the
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natural environment, or providing assistance to the
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elderly


company - CORRECT ANSWERS ✔✔a business that is |\ |\ |\ |\ |\ |\ |\ |\



owned by shareholders; it possesses a certificate of
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incorporation that gives it a separate legal identity from |\ |\ |\ |\ |\ |\ |\ |\ |\



its owners
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Deed of Partnership - CORRECT ANSWERS ✔✔the legal
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contract signed by the owners of a partnership; the
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formal document includes the fundamental issues of the
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business, such as the name and responsibilities of each
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partner and their share of any profits or losses
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incorporation - CORRECT ANSWERS ✔✔there is a legal |\ |\ |\ |\ |\ |\ |\ |\



difference between the owners of a company and the |\ |\ |\ |\ |\ |\ |\ |\ |\



business itself that ensures that the owners are
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safeguarded against any losses made by the company as |\ |\ |\ |\ |\ |\ |\ |\ |\



the owners are protected by limited liability
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