IB Business Management HL Questions and Answers ( Graded A+)

B Business Management HL Questions and Answers ( Graded A+) Ansoff Matrix - ANS- Market Penetration, Market Development, Product Development, Product Diversification Business Plan - ANS- a written statement of the business's goals and objectives, and the steps to be taken to achieve them. Company/ Corporation - ANS- legal entity separate from its owners Cooperative - ANS- A business that is owned by the members it serves and is managed in their interest. Corporate Social Responsibility - ANS- business's concern for society's welfare Decision Tree - ANS- shows conditions and actions graphically Diversification - ANS- A strategy of increasing sales by introducing new products into new markets Dividends - ANS- earnings distributed to stockholders Economic Influences - ANS- Food choices based on supply and demand, price and availability Economies of Scale - ANS- Cost advantages associated with large-scale production Ethical Objectives - ANS- Pressure on business to have ethical manners, expected from the general public External Growth - ANS- Business takes over or merges with another. Fiscal Policy - ANS- Government policy that attempts to manage the economy by controlling taxing and spending. Fishbone Diagram - ANS- visual model to clarify cause and effect relationships Fixed Costs - ANS- costs that are the same no matter how many units of a good are produced Force Field Analysis - ANS- analyzing the reasons for a problem as well as what is preventing the problem from being eliminated Franchise - ANS- A legal agreement that gives an individual the right to market a company's products or services in a particular area. Globalization - ANS- a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. Gross Domestic Product - ANS- The sum total of the value of all the goods and services produced in a nation Horizontal Integration - ANS- Type of monopoly where a company buys out all of its competition. Ex. Rockefeller Inorganic Growth - ANS- Expansion by merging with or taking over another business. Internal Stakeholder - ANS- Stakeholders that work within the business. Joint Venture - ANS- A partnership created by two or more companies for a specific purpose over a set period of time. Merger - ANS- Combination of two or more companies into a single firm Monetary Policy - ANS- changes in the money supply to fight recessions or inflations Multinational Corporation - ANS- a large company that has operations in more than one country Non-profit Organization - ANS- A business whose goal is to provide a service rather than to make a profit, such as the American Red Cross. Operational Objectives - ANS- Deals with the day-to-day or short-term planning for delivery of a business process Organic Growth - ANS- where a business grows naturally without merging or taking over other businesses Pest Analysis - ANS- acronym for Political, Economic, Social and Technological factors, which are used to assess the market for a business or organizational unit. Primary Sector - ANS- A part of an economy that is dominated by agriculture, including fishing and forestry. Secondary Sector - ANS- the part of the economy that transforms raw materials into manufactured goods Social Influences - ANS- The forces other people exert on one's buying behavior Stakeholder - ANS- the people whose interests are affected by an organization's activities SWOT Analysis - ANS- strengths, weaknesses, opportunities, threats Vertical Integration - ANS- Practice where a single entity controls the entire process of a product, from the raw materials to distribution Vision - ANS- A long-term strategy for attaining a goal Unique Selling Point - ANS- A feature or function of a product that makes it different to any other on the market. Appraisal - ANS- evaluation or estimation of worth Arbitation - ANS- is a produre in which a neutral person or panel listens to both sides of a dispute and weighs the evendice and reaches a decision Autocratic - ANS- absolute in power or authority Centralization - ANS- The degree to which decision making is concentrated at a single point in an organization. Chain of Command - ANS- hierarchy Collective Bargaining - ANS- Process by which a union representing a group of workers negotiates with management for a contract Conciliation - ANS- appeasement De-layering - ANS- The removal of one or more layers from the organisational structure Decentralization - ANS- Degree to which decision-making authority is given to lower levels in an organization's hierarchy. Democratic - ANS- Ruled by the people Dismissal - ANS- Termination of an employment contract due to incompetence or indiscipline Empowerment - ANS- the delegation of power and authority to subordinates Financial Rewards - ANS- Cash and non-cash rewards paid to workers which are often used to motivate workers to increase their efforts