Unit 1: Introduction to Business Management
Topic 1.1: What is a Business? Questions
Practice 20 exam-style questions for IB Business Management Topic 1.1. Review the question stems below, then unlock the full Question Bank to access markschemes, model answers, and AI grading.
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State three sections that are commonly included in a business plan.
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Define the term cash flow.
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State one difference between a good and a service.
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A student sells handmade phone cases and also offers a one hour phone setup lesson. Identify which activity provides a good and which provides a service.
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A bakery says its purpose is to satisfy customer needs and wants. Explain the difference between a need and a want, using one example of each linked to the bakery.
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Define the term business plan.
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Define the term business function.
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State the four main business functions in most organizations.
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A café wants to hire two new baristas. Identify the business function most responsible for this decision and one task it would carry out.
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A small manufacturer has many customer complaints about faulty products. Identify which business function is most directly responsible for fixing this issue and state one action it could take.
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A business plans to launch a new product next month. Outline one role of each of these functions: marketing, operations, finance, and HR.
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Define the term business opportunity.
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State two questions a start-up should answer during market research.
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Define the term primary sector of business activity.
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State one example of a secondary sector business.
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A business grows wheat and sells it to a flour mill. Identify the sector of this business.
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A company turns steel into car parts in a factory. Identify the sector of this business and give one reason.
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State one reason why a profitable new business can still fail.
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A new bakery must pay rent, wages and ingredient bills weekly, but customers pay using invoices at the end of each month. Identify the main financial challenge.
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