IB Business Management Questions and Answers ( 100% pass)

IB Business Management Questions and Answers ( 100% pass) Business Plan - ANS- The document that sets out the business idea, its goals and objectives, and other details of how the business will operate (such as its marketing, operations, and finance). It is often a crucial part of an attempt to raise external sources of finance. Businesses - ANS- Organizations involved in the production of goods and/or the provision of services. Consumers - ANS- The people or organizations who actually use a product. Customers - ANS- The people or organizations that buy the product. Entrepreneurs - ANS- Owners or operators of an organization who manage, organize, and plan the other three factors of production. They are risk takers who exploit business opportunities in return for profits. Intrapreneurship - ANS- The act of behaving as an entrepreneur but as an employee within a large business organization. They work in an entrepreneurial capacity, with authority to create innovative products or new processes for the organization. Needs - ANS- The basic necessities that a person must have to survive, e.g. food, water, warmth, shelter, and clothing. Primary Sector - ANS- Businesses involved in the cultivation or extraction of natural resources, e.g. farming, mining, quarrying, fishing, oil exploration, and forestry. Product - ANS- Both goods and services. Goods are physical __________, e.g. cars, books, and food. Services are intangible __________, e.g. haircuts, bus rides, education, and health care. Quaternary Sector - ANS- A subcategory of the tertiary sector, where businesses are involved in intellectual, knowledge-based activities that generate and share information, e.g. information communities technology and research organizations. Secondary Sector - ANS- The section of the economy where business activity is concerned with the construction and manufacturing of products. Sectoral Change - ANS- A shift in the relative share of gross domestic product (or national output) and employment that is attributed to each business sector. Tertiary Sector - ANS- The section of the economy where business activity is concerned with the provision of services to customers. Wants - ANS- People's desires, i.e. the things they would like to have, e.g. a larger home, a new smartphone, or to go on an overseas holiday. Charities - ANS- Non-profit social enterprises that provide voluntary support for good causes (from society's point of view), such as protection of children, animals, and the natural environment. Cooperatives - ANS- For-profit social enterprises set up, owned, and run by their members, who might be employees and/or customers. Company (or Corporation) - ANS- A business that is owned by shareholders. It has been issued a certificate of incorporation, giving it a separate legal identity from its owners. Deed of Partnership - ANS- The legal contract signed by the owners of a partnership. The formal deeds specify the name and responsibilities of each partner and their share of any profits or losses. Incorporation - ANS- There is a legal difference between the owners of a company and the business itself. This ensures that the owners are protected by limited liability. Initial Public Offering (IPO) - ANS- It occurs when a business sells all or part of its business to shareholders on a stock exchange for the first time. Limited Liability - ANS- A restriction on the amount of money that owners can lose if their business goes bankrupt, i.e. shareholders cannot lose more than they invested in the company. Microfinance - ANS- A type of financial service aimed at entrepreneurs of small businesses, especially females and those on low incomes. Non-Governmental Organizations (NGO) - ANS- Private sector not-for-profit social enterprises that operate for the benefit of others rather than primarily aiming to make a profit, e.g. Oxfam and Friends of the Earth. Partnerships - ANS- A type of private sector business owned by 2-20 people (known as partners). They share the responsibilities and burdens of running and owning the business. Private Limited Company - ANS- A business owned by shareholders with limited liability but whose shares cannot be bought by or sold the general public. Aims - ANS- The long-term goals of a business, often expressed in the firm's mission statement. They are a general statement of a firm's purpose or intentions and tend to be qualitative in nature. Ansoff Matrix - ANS- An analytical tool to devise various product and market growth strategies, depending on whether businesses want to market new or existing products in either new or existing markets. Corporate Social Responsibility (CSR) - ANS- The conscientious consideration of ethical and environmental practices related to business activity. A business that adopts ________ acts morally towards its various stakeholder groups and the well-being of society as a whole.