IB Business topic 1 glossary questions
with answers.
Business ANS -decision making organisation involved in the process of using inputs to produce goods
and/or provide services
Primary sector ANS -businesses involved in the cultivation or extraction of natural resources e.g.
farming, mining, fishing
Secondary sector ANS -where business activity is concerned with the construction and manufacturing of
physical products e.g. factory
Tertiary sector ANS -where business activity is concerned with the provision of services to customers
Charity ANS -a not-for-profit organisation that is established to support a good cause.
Company ANS -a business that is owned by its shareholders
incorporation ANS -means that there is a legal difference between the owners of a company and the
company itself. This ensures that owners safeguard themselves against any losses made by the
company.
Limited liability ANS -restriction on the amount of money that can be lost from the owners owners if it
goes into bankruptcy.
non-governmental organisation (NGO) ANS -a private sector organisation that does not primarily aim to
make a profit and instead operate for the benefit of others in society
partnership ANS -form of private sector business owned by 2-20 people
, private limited company ANS -organisation owned by shareholders with limited liability but cannot sell
shares to the general public
public limited company ANS -business which sells its shares on the stock exchange
sole trader ANS -self employed person who runs the business on their own
unlimited liability ANS -refers to the when owners of a business are fully responsible for all monies owed
to creditors
Public sector ANS -business under the control of the government
private sector ANS -business not owned by the government but instead by private individuals
aim ANS -long term goals often expressed in a mission statement
corporate social responsibility (CSR) ANS -acting morally towards stakeholders
ethics ANS -moral values that determine and effect business behaviour and decision making
mission statement ANS -declaration of a business' overall purpose, more specific
objectives ANS -relatively shorter term targets for a business
social audit ANS -independent assessment of how an organisations actions affect society
strategic objectives ANS -methods that a business can use to achieve its mission or vision statement,
long term
tactical objectives ANS -short term more specific to a department e.g. survival
with answers.
Business ANS -decision making organisation involved in the process of using inputs to produce goods
and/or provide services
Primary sector ANS -businesses involved in the cultivation or extraction of natural resources e.g.
farming, mining, fishing
Secondary sector ANS -where business activity is concerned with the construction and manufacturing of
physical products e.g. factory
Tertiary sector ANS -where business activity is concerned with the provision of services to customers
Charity ANS -a not-for-profit organisation that is established to support a good cause.
Company ANS -a business that is owned by its shareholders
incorporation ANS -means that there is a legal difference between the owners of a company and the
company itself. This ensures that owners safeguard themselves against any losses made by the
company.
Limited liability ANS -restriction on the amount of money that can be lost from the owners owners if it
goes into bankruptcy.
non-governmental organisation (NGO) ANS -a private sector organisation that does not primarily aim to
make a profit and instead operate for the benefit of others in society
partnership ANS -form of private sector business owned by 2-20 people
, private limited company ANS -organisation owned by shareholders with limited liability but cannot sell
shares to the general public
public limited company ANS -business which sells its shares on the stock exchange
sole trader ANS -self employed person who runs the business on their own
unlimited liability ANS -refers to the when owners of a business are fully responsible for all monies owed
to creditors
Public sector ANS -business under the control of the government
private sector ANS -business not owned by the government but instead by private individuals
aim ANS -long term goals often expressed in a mission statement
corporate social responsibility (CSR) ANS -acting morally towards stakeholders
ethics ANS -moral values that determine and effect business behaviour and decision making
mission statement ANS -declaration of a business' overall purpose, more specific
objectives ANS -relatively shorter term targets for a business
social audit ANS -independent assessment of how an organisations actions affect society
strategic objectives ANS -methods that a business can use to achieve its mission or vision statement,
long term
tactical objectives ANS -short term more specific to a department e.g. survival
