IB BUSINESS AND MANAGEMENT SL & HL
DEFINITIONS COMPLETE STUDY GUIDE
PRACTICE QUESTIONS AND ANSWERS
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales Included
,Ansoff's matrix a model used to show the degree of risk associated with the four growth
strategies of market penetration, market development, product development and
diversification
arbitration resolving an industrial dispute by using an independent third party to judge and
recommend an appropriate solution
asset-led marketing an approach to marketing that bases strategy on the firm's existing strengths and
assets instead of purely on what the customer wants
assets items of monetary value that are owned by a business
autocratic leadership a style of leadership that keeps all decision-making at the centre of the
organisation
average rate of return (ARR) measures the annual profitability of an investment as a percentage of the initial
investment
backward vertical integration integration with a business in the same industry but a supplier of the existing
business
bad debt unpaid customers' bills that are now very unlikely to ever be paid
balance sheet an accounting statement that records the values of a business's assets, liabilities
and shareholders' equity at one point in time
batch production producing a limited number of identical products - each item in the batch passes
through one stage of production before passing on to the next stage
below-the-line promotion promotion that is not a directly paid-for means of communication but based on
short-term incentives to purchase, e.g. sales promotion techniques
benchmarking comparing the performance - including quality - of a business with performance
standards throughout the industry
Boston Matrix a method of analysing the product portfolio of a business in terms of market share
and market growth
brand an identifying symbol, name, image or trade mark that distinguishes a product
from its competitors
, brand awareness extent to which a brand is recognised by potential customers and is correctly
associated with a particular product - can be expressed as a percentage of the
target market
brand development measures the infiltration of a product's sales, usually per thousand population. If
100 people in1000 buy a product, it has a brand development of 10
brand loyalty the faithfulness of consumers to a particular brand as shown by their repeat
purchases irrespective of the marketing pressure from competing brands
break-even point of production the level of output at which total costs equal total revenue
break-even revenue the amount of revenue needed to cover both fixed and variable costs so that the
business breaks even
budget a detailed financial plan for the future
budget holder individual responsible for the initial setting and achievement of a budget
buffer stocks the minimum stocks that should be held to ensure that production could still take
place should a delay in delivery occur or production rates increase
bureaucracy an organisational system with standardised procedures and rules
business plan a written document that describes a business, its objectives and its strategies, the
market it is in and its financial forecasts
business process outsourcing (BPO) a form of outsourcing which uses a third party to take responsibility for certain
business functions, such as human resources and finance
business process re-engineering Fundamentally rethinking and redesigning the processes of a business to achieve
a dramatic improvement in performance
DEFINITIONS COMPLETE STUDY GUIDE
PRACTICE QUESTIONS AND ANSWERS
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales Included
,Ansoff's matrix a model used to show the degree of risk associated with the four growth
strategies of market penetration, market development, product development and
diversification
arbitration resolving an industrial dispute by using an independent third party to judge and
recommend an appropriate solution
asset-led marketing an approach to marketing that bases strategy on the firm's existing strengths and
assets instead of purely on what the customer wants
assets items of monetary value that are owned by a business
autocratic leadership a style of leadership that keeps all decision-making at the centre of the
organisation
average rate of return (ARR) measures the annual profitability of an investment as a percentage of the initial
investment
backward vertical integration integration with a business in the same industry but a supplier of the existing
business
bad debt unpaid customers' bills that are now very unlikely to ever be paid
balance sheet an accounting statement that records the values of a business's assets, liabilities
and shareholders' equity at one point in time
batch production producing a limited number of identical products - each item in the batch passes
through one stage of production before passing on to the next stage
below-the-line promotion promotion that is not a directly paid-for means of communication but based on
short-term incentives to purchase, e.g. sales promotion techniques
benchmarking comparing the performance - including quality - of a business with performance
standards throughout the industry
Boston Matrix a method of analysing the product portfolio of a business in terms of market share
and market growth
brand an identifying symbol, name, image or trade mark that distinguishes a product
from its competitors
, brand awareness extent to which a brand is recognised by potential customers and is correctly
associated with a particular product - can be expressed as a percentage of the
target market
brand development measures the infiltration of a product's sales, usually per thousand population. If
100 people in1000 buy a product, it has a brand development of 10
brand loyalty the faithfulness of consumers to a particular brand as shown by their repeat
purchases irrespective of the marketing pressure from competing brands
break-even point of production the level of output at which total costs equal total revenue
break-even revenue the amount of revenue needed to cover both fixed and variable costs so that the
business breaks even
budget a detailed financial plan for the future
budget holder individual responsible for the initial setting and achievement of a budget
buffer stocks the minimum stocks that should be held to ensure that production could still take
place should a delay in delivery occur or production rates increase
bureaucracy an organisational system with standardised procedures and rules
business plan a written document that describes a business, its objectives and its strategies, the
market it is in and its financial forecasts
business process outsourcing (BPO) a form of outsourcing which uses a third party to take responsibility for certain
business functions, such as human resources and finance
business process re-engineering Fundamentally rethinking and redesigning the processes of a business to achieve
a dramatic improvement in performance
