IB Business Topic 1 (1.1 - 1.6) Exam
with Complete Solutions
A decision making organization who uses resources to create goods/services to satisfy
the needs and wants of people - ANS-Definition of business
Resources uses in production process (labour, raw materials) - ANS-Inputs
Turning raw goods into manufactured goods - ANS-Processes
Final good / service - ANS-Outputs / Product
Physical product (car, computer, phone) - ANS-Goods
Cannot touch. (hairdressing, counseling) - ANS-Services
Land(All natural resources), labour(human effort), capital(manufactured resources),
enterprise - ANS-Four factors of production
Human Resources, Marketing, Finance + accounts, Production + operations - ANS-4
Functional areas / departments
Manages people (recruitment, training, dismissals) - ANS-Human Resources
social changes, government policies (sudden oil price change) - ANS-External
activities / shock
Recording and reporting of transactions and documentation. Informs on firm's financial
position and performance - ANS-Finance and Accounts
Ensures product sells through market research, advertising and branding. (Product,
price, promotion, place) - ANS-Marketing
Management of resources (raw goods) into final product - ANS-Operations
management/ production
Customers buy the product, Consumers use the product. Can be the same. (Parent
buys food, child eats it) - ANS-Customers vs. Comsumers
Physical products brought by business to produce other goods. (machinery, tools,
buildings) - ANS-Capital (goods)
, Transforming raw materials into finished goods (pathway and process) Value is added
at every stage - ANS-Chain of production
Involved in extraction/harvesting (farming, mining, fishing,) GOODS - ANS-Primary
Sector
Manufacturing and construction (raw materials turned into consumer/capital goods)
GOODS - ANS-Secondary Sector
Goods targeted to be sold at general public - ANS-Consumer goods
Personal and commercial services to general public (shops, banks) SERVICES - ANS-
Tertiary Sector
Tech. businesses / knowledge industries (help services) SERVICES - ANS-Quaternary
Sector
Less economically developed countries (mainly primary sector jobs) - ANS-LEDCs
More economically developed countries (mainly tertiary and quaternary) - ANS-MEDCs
Newly industrialising economies (mainly second sector) - ANS-NICs
Employees in big companies given resources to produce profitable innovations - ANS-
Intrapreneurs
Creates a business with all financial and willingness to take high personal risks-
unlimited liability. Innovative and passionate. - ANS-Entrepreneurs
Written document setting out business goals and how these will be achieved - ANS-
Business Plan
High start up/production costs, legalities, cash flow, marketing, competition, poor
location, poor management - ANS-Problems new businesses face
GET CASH - Growth, earnings, transference, challenge, autonomy, security, hobbies -
ANS-Reasons to start up business
Shift in relative share of gross domestic product (or national output) and employment
that is attributed to each business sector - ((when country shifts sectors)) - ANS-
Sectoral Change
Basic necessities (food, water, shelter) - ANS-Needs
People's desires, things they would like to have - ANS-Wants
with Complete Solutions
A decision making organization who uses resources to create goods/services to satisfy
the needs and wants of people - ANS-Definition of business
Resources uses in production process (labour, raw materials) - ANS-Inputs
Turning raw goods into manufactured goods - ANS-Processes
Final good / service - ANS-Outputs / Product
Physical product (car, computer, phone) - ANS-Goods
Cannot touch. (hairdressing, counseling) - ANS-Services
Land(All natural resources), labour(human effort), capital(manufactured resources),
enterprise - ANS-Four factors of production
Human Resources, Marketing, Finance + accounts, Production + operations - ANS-4
Functional areas / departments
Manages people (recruitment, training, dismissals) - ANS-Human Resources
social changes, government policies (sudden oil price change) - ANS-External
activities / shock
Recording and reporting of transactions and documentation. Informs on firm's financial
position and performance - ANS-Finance and Accounts
Ensures product sells through market research, advertising and branding. (Product,
price, promotion, place) - ANS-Marketing
Management of resources (raw goods) into final product - ANS-Operations
management/ production
Customers buy the product, Consumers use the product. Can be the same. (Parent
buys food, child eats it) - ANS-Customers vs. Comsumers
Physical products brought by business to produce other goods. (machinery, tools,
buildings) - ANS-Capital (goods)
, Transforming raw materials into finished goods (pathway and process) Value is added
at every stage - ANS-Chain of production
Involved in extraction/harvesting (farming, mining, fishing,) GOODS - ANS-Primary
Sector
Manufacturing and construction (raw materials turned into consumer/capital goods)
GOODS - ANS-Secondary Sector
Goods targeted to be sold at general public - ANS-Consumer goods
Personal and commercial services to general public (shops, banks) SERVICES - ANS-
Tertiary Sector
Tech. businesses / knowledge industries (help services) SERVICES - ANS-Quaternary
Sector
Less economically developed countries (mainly primary sector jobs) - ANS-LEDCs
More economically developed countries (mainly tertiary and quaternary) - ANS-MEDCs
Newly industrialising economies (mainly second sector) - ANS-NICs
Employees in big companies given resources to produce profitable innovations - ANS-
Intrapreneurs
Creates a business with all financial and willingness to take high personal risks-
unlimited liability. Innovative and passionate. - ANS-Entrepreneurs
Written document setting out business goals and how these will be achieved - ANS-
Business Plan
High start up/production costs, legalities, cash flow, marketing, competition, poor
location, poor management - ANS-Problems new businesses face
GET CASH - Growth, earnings, transference, challenge, autonomy, security, hobbies -
ANS-Reasons to start up business
Shift in relative share of gross domestic product (or national output) and employment
that is attributed to each business sector - ((when country shifts sectors)) - ANS-
Sectoral Change
Basic necessities (food, water, shelter) - ANS-Needs
People's desires, things they would like to have - ANS-Wants
