IB Business Management topic 1 (for study) 2023

IB Business Management topic 1 (for study) 2023 Business - Answer-A decision-making organization involved in the process of using inputs to produce goods and services Market - Answer-A place or process whereby buyers (customers) and sellers (businesses) meet to trade Factors of production - Answer-Land, Labor, Capital, Enterprise Financial returns for land - Answer-rent Financial returns for labor - Answer-wages/salaries Financial returns for capital - Answer-interest Financial returns for enterprise - Answer-profit Specialization - Answer-A business that concentrates on the production of a particular good or service or a small range of similar products (Occurs at different levels: individual, departmental, corporate, regional, and national) Division of Labor - Answer-the specialization of people, rather than organizationsInvolves defining different aspects of a job or task and assigning different people to each part of the work Opportunity Cost - Answer-Cost measured in terms of the best alternative benefit or profit foregone when making a decision Primary sector - Answer-Businesses that collect and produce raw materials- eg farming, fishing, agriculture, mining etc Secondary sector - Answer-Businesses that manufacture and process raw materials into goods- eg computers, brewing, baking, clothing and construction Tertiary sector - Answer-Businesses that provide services to consumers and other businesses- eg retail and wholesale, transport, insurance, banking, hotels, tourism etc Private sector - Answer-part of the economy under the control of private individuals and businesses, rather than the government- eg sole traders, partnerships, public/private limited companies Public sector - Answer-part of the economy under control of the government or public corporations- eg state health/education services, emergency services, roading infrastructure Continues...