ib exams

Question 1

BUSINESS FUNCTION: Human resources

Answer 1

Handles all aspects related to the workforce. In charge of recruitment, training, promotion, dismissal of staff, etc.

Question 2

BUSINESS FUNCTION: Finance and accounts

Answer 2

Ensures the business has sufficient funds in order to conduct its daily operations

Question 3

BUSINESS FUNCTION: Marketing

Answer 3

Identifies the needs and wants of the customers and provides ways to meet those requirements

Question 4

BUSINESS FUNCTION: Operations management

Answer 4

Makes the goods and provides the services from their resources. In charge of ensuring that they meet production targets, deadlines, and quality standards.

Question 5

Primary sector

Answer 5

The business sector involved with extracting natural resources (farming, fishing, mining)

Question 6

Secondary sector

Answer 6

The business sector involved with the manufacturing or construction of finished products (construction, engineering, food processing)

Question 7

Tertiary sector

Answer 7

The business sector involved with providing services to customers (banking, retail, health care)

Question 8

Quaternary sector

Answer 8

The business activity involved with the creation or sharing of knowledge and information using digital technologies

Question 9

Entrepreneurs

Answer 9

Own their own business, able to take risks

Question 10

Intrapreneurs

Answer 10

Take the initiative on implementing new ideas in order for the business to thrive and remain competitive

Question 11

Private sector

Answer 11

Businesses owned by private individuals/organizations that aim to earn a profit (sole traders, partnerships, limited liability companies)

Question 12

Public sector

Answer 12

Businesses controlled by the government aiming to provide resources/services to the general public (education, emergency services, health care services)

Question 13

SMART

Answer 13

Specific, measurable, achievable, realistic and tactics

Question 14

SWOT

Answer 14

SWOT: Strengths, weaknesses, opportunities, and threats. Advantages: helps develop a better understanding of an organization’s position in the market. Disadvantages: SWOT does not guarantee the strategy will be successful, only provides a snapshot of the current situation for an organization.

Question 15

ANSOFF’S MATRIX: Market penetration

Answer 15

Existing market, existing products

Question 16

ANSOFF’S MATRIX: Market development

Answer 16

Existing products, new market

Question 17

ANSOFF’S MATRIX: Product development

Answer 17

New products, existing market

Question 18

ANSOFF’S MATRIX: Diversification

Answer 18

New products, new market

Question 19

Internal stakeholder types

Answer 19

Employees, managers, shareholders

Question 20

External stakeholder types

Answer 20

Customers, suppliers, local community, pressure groups, the government

Question 21

STEEPLE/PESTLE

Answer 21

Social, technological, economic, ethical, political, legal, environmental. Advantages: helps managers plan more strategically, enables the business to identify opportunities and threats.

Question 22

Economies of scale

Answer 22

Enables a business to benefit from lower average costs (the cost per unit) by increasing the size of its operations

Question 23

Diseconomies of scale

Answer 23

Causes the firm’s average costs of production to rise, occurs if the firm grows beyond its ability to operate efficiently

Question 24

Marketing mix

Answer 24

Product, price, promotion, place

Question 25

Types of pricing strategies

Answer 25

Psychological pricing, price discrimination, price leadership, loss leader

Question 26

The product life cycle (PLC)

Answer 26

PLC is the stages a product goes through - research & development, launch, growth, maturity, decline

Question 27

Internal (organic) vs external (inorganic) growth

Answer 27

Internal: growing w/o help of an external partner. External: organization needs help from a partner organization to grow.

Question 28

Co-operative

Answer 28

For-profit social enterprise owned/managed by its members

Question 29

Capital expenditure

Answer 29

Purchase of fixed assets that will generate revenue over a longer period of time

Question 30

Revenue expenditure

Answer 30

Short-term expenses running daily operations

Question 31

Below/Above the line promotion

Answer 31

Below does not use external media agents, above does use external media agents

Question 32

Cost-plus pricing

Answer 32

Determining the price of a product based on the business' unit costs

Question 33

Limited liability/Unlimited liability

Answer 33

Limited: shareholders are not liable for more than original amount of money invested. Unlimited: owners of business are responsible for debts even if it comes from personal assets.

Question 34

Liquidity

Answer 34

How easily a business can convert assets into cash

Question 35

Return on capital employed (ROCE)

Answer 35

Profitability ratio that measures a firm's efficiency/profitability in relation to its size

Question 36

Social enterprises

Answer 36

Revenue generating businesses with community benefiting objectives

Question 37

Supply chain

Answer 37

Managing sequence of activities from production to being delivered to customer

Question 38

Zero-channel distribution network

Answer 38

Sells directly to consumer