Unit 1: Introduction to Business Management
Topic 1.5: Growth and Evolution Questions
Practice 20 exam-style questions for IB Business Management Topic 1.5. Review the question stems below, then unlock the full Question Bank to access markschemes, model answers, and AI grading.
1define2 marks
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Define the term economies of scale.
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A franchisee pays an initial fee and monthly royalties. Identify what the franchisee receives in return.
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Brannock Furniture now makes 50 000 chairs a year in one factory, up from 8 000 when it started.
State two types of internal economy of scale.
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SunTile’s cost per solar panel fell from $210 to $160 after it opened a second production line.
Define the term economies of scale.
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Define the term franchise agreement.
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State two benefits of franchising for the franchisor.
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Which statement gives the clearest meaning of internal growth?
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What is a benefit of franchising for the franchisor?
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Terracotta Works has moved from a small workshop to a factory with a kiln three times the size.
Define the term economies of scale.
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Veloce Bikes assembled 3 000 bicycles in 2023 and 9 000 in 2024, and the cost of each bicycle fell by 18%.
Define the term economies of scale.
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Define the term diseconomies of scale.
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Which statement gives the clearest meaning of an acquisition?
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Kettle and Crumb makes crisps. Its output rose from 2 million to 5 million bags a year, and its cost per bag fell from $0.40 to $0.31.
Define the term economies of scale.
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What is a benefit of franchising for the franchisee?
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Which statement describes external growth for a business?
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Define the term internal growth.
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Which statement gives the clearest meaning of economies of scale?
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Orbit Air has doubled its fleet to 60 aircraft in five years and now flies to 40 cities.
State two types of internal economy of scale.
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Since opening its own roastery, Brewline roasts coffee for 40 cafés instead of buying it in for 12.
Define the term economies of scale.
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Coastal Coaches bought 40 more buses this year and now runs 120 routes along the coast.
Define the term economies of scale.
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