IB Business and
Management SL & HL
Definitions 2026 | Key
Terms, Study Guide,
Practice Questions,
Answers & Exam Review |
Complete Ethics Study
Guide
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
,above-the-line promotion a form of promotion that is undertaken by a business by paying for communication
with consumers, e.g. advertising
acid test ratio liquid assets - current liabilities
accountability the obligation of an individual to account for his or her activities and to disclose
results in a transparent way
adverse variance exists when the difference between the budgeted and actual figure leads to a lower
than expected profit
advertising elasticity measures the responsiveness of demand for a product following a change in the
advertising spending on it
agent business with the authority to act on behalf of another firm, e.g. to market its
products
annual forecasted net cash flow forecasted cash inflow/forecasted cash outflows
Ansoff's matrix a model used to show the degree of risk associated with the four growth strategies
of market penetration, market development, product development and
diversification
arbitration resolving an industrial dispute by using an independent third party to judge and
recommend an appropriate solution
asset-led marketing an approach to marketing that bases strategy on the firm's existing strengths and
assets instead of purely on what the customer wants
assets items of monetary value that are owned by a business
autocratic leadership a style of leadership that keeps all decision-making at the centre of the organisation
, average rate of return (ARR) measures the annual profitability of an investment as a percentage of the initial
investment
backward vertical integration integration with a business in the same industry but a supplier of the existing
business
bad debt unpaid customers' bills that are now very unlikely to ever be paid
balance sheet an accounting statement that records the values of a business's assets, liabilities
and shareholders' equity at one point in time
batch production producing a limited number of identical products - each item in the batch passes
through one stage of production before passing on to the next stage
below-the-line promotion promotion that is not a directly paid-for means of communication but based on
short-term incentives to purchase, e.g. sales promotion techniques
benchmarking comparing the performance - including quality - of a business with performance
standards throughout the industry
Boston Matrix a method of analysing the product portfolio of a business in terms of market share
and market growth
brand an identifying symbol, name, image or trade mark that distinguishes a product from
its competitors
brand awareness extent to which a brand is recognised by potential customers and is correctly
associated with a particular product - can be expressed as a percentage of the
target market
Management SL & HL
Definitions 2026 | Key
Terms, Study Guide,
Practice Questions,
Answers & Exam Review |
Complete Ethics Study
Guide
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
,above-the-line promotion a form of promotion that is undertaken by a business by paying for communication
with consumers, e.g. advertising
acid test ratio liquid assets - current liabilities
accountability the obligation of an individual to account for his or her activities and to disclose
results in a transparent way
adverse variance exists when the difference between the budgeted and actual figure leads to a lower
than expected profit
advertising elasticity measures the responsiveness of demand for a product following a change in the
advertising spending on it
agent business with the authority to act on behalf of another firm, e.g. to market its
products
annual forecasted net cash flow forecasted cash inflow/forecasted cash outflows
Ansoff's matrix a model used to show the degree of risk associated with the four growth strategies
of market penetration, market development, product development and
diversification
arbitration resolving an industrial dispute by using an independent third party to judge and
recommend an appropriate solution
asset-led marketing an approach to marketing that bases strategy on the firm's existing strengths and
assets instead of purely on what the customer wants
assets items of monetary value that are owned by a business
autocratic leadership a style of leadership that keeps all decision-making at the centre of the organisation
, average rate of return (ARR) measures the annual profitability of an investment as a percentage of the initial
investment
backward vertical integration integration with a business in the same industry but a supplier of the existing
business
bad debt unpaid customers' bills that are now very unlikely to ever be paid
balance sheet an accounting statement that records the values of a business's assets, liabilities
and shareholders' equity at one point in time
batch production producing a limited number of identical products - each item in the batch passes
through one stage of production before passing on to the next stage
below-the-line promotion promotion that is not a directly paid-for means of communication but based on
short-term incentives to purchase, e.g. sales promotion techniques
benchmarking comparing the performance - including quality - of a business with performance
standards throughout the industry
Boston Matrix a method of analysing the product portfolio of a business in terms of market share
and market growth
brand an identifying symbol, name, image or trade mark that distinguishes a product from
its competitors
brand awareness extent to which a brand is recognised by potential customers and is correctly
associated with a particular product - can be expressed as a percentage of the
target market
