IB Business and Management Vocabulary 2023 Update

IB Business and Management Vocabulary 2023 Update Primary Sector - Answer-Businesses involved in the extraction of natural resources, such as farming, mining, fishing, etc. Secondary Sector - Answer-Business activity is concerned with the construction and manufacturing of physical products. Tertiary Sector - Answer-Business activity is concerned with the provision of services to customers Private Sector - Answer-Part of the economy under the control of private individuals and businesses, rather than the government. (sole traders, partnerships, corporations) Public Sector - Answer-Part of the economy under the control of the government Incorporation - Answer-There is a legal difference between the owners of a company and the business itself. Ensures that the owners are safeguarded against any losses made by the companies. Limited Liability - Answer-Restriction on the amount of money that can be lost from the owners of a business if it goes into bankrupcy Unlimited Liability - Answer-No limit to how much debt a sole trader is legally responsible to pay if failure Non - governmental organization (NGO) - Answer-Any private sector organization that does not primarily aim to make profit. Instead, they operate for the benefit of others in society Private Limited company - Answer-Business organization owned by shareholders with limited lability but whose shares cannot be bought or sold to the general public (stock exchange) Public Limited company - Answer-Incorporated business organization that allows the general public to buy and sell shares in the company via stock exchange Partnership - Answer-Form of private sector business owned by 1 - 20 people. They share the responsibilities and burdens of running and owning the business. Sole trader - Answer-Self - employed person. He or she runs the business on their own and has sole responsibility for its success or failure. Unincorporated - Answer-The owner is legally the same as the business (he or she is treated as a single entity) Owner is personally responsible for all debts Vision statement - Answer-Outlines a business's aspirations (where it wants to be) in the distant future Mission statement - Answer-A simple declaration that broadly states the underlying purpose of an organization's existence Aims - Answer-General long - term goals of an organization. Objectives - Answer-Short term and more specific goals of an organization based on its aims. Tactical Objectives - Answer-Short - term objectives that affect a segment of the organization. Specific goals that guide the daily functioning of certain operations that are in line with the primary objectives of the business Strategic Objectives - Answer-Long term aims of a business organization. For example: profit maximization, growth, image and reputation, and market standing. SMART Objectives - Answer-Specific, measurable, agreed, realistic and times Corporate Social Responsibility - Answer-Businesses that act morally towards their stakeholders such as their employees and the local community. Social Audit - Answer-Independent assessment of how a firm's actions affect society Stakeholder - Answer-Any person or organization that has a direct interest in and is affected by the performance of a business Internal Stakeholders - Answer-Employees, shareholders, managers and directors of the organization External Stakeholders - Answer-Suppliers, customers, special interest groups, competitors and the government Stakeholder mapping - Answer-Allows managers to assess how to deal with conflicting stakeholder objectives PEST Analysis - Answer-A framework used to analyse the opportunities and threats of the political, economical, social and technological environments on business activity SWOT Analysis - Answer-Analytical tool used to assess the internal strengths and weaknesses and the external opportunities and threats of an organization or a decision Decision making framework - Answer-Systematic process of dealing with business problems, concerns or issues in order to make the best decision Decision Tree - Continues...