Unit 1 · Introduction to Business Management · Topic 1.1

IB Business Management — What is a business?

At Higher Level, Topic 1.1 extends the study of business activity with more complex scenarios and deeper analysis of entrepreneurial motivation. HL students must demonstrate multi-concept application when discussing factors of production, opportunity cost, and how businesses create value in different economic contexts.

Exam technique guide Practice questions

What you'll learn in Topic 1.1

1.1.1 Nature of businesses
1.1.2 Business functions
1.1.3 Primary, secondary, tertiary, and quaternary sectors
1.1.4 Process of starting a business
1.1.5 Opportunities of a new business
1.1.6 Challenges of a new business

Exam relevance

At Higher Level, BM includes quantitative questions and deeper strategic analysis. Paper 2 requires extended responses with financial calculations, ratio analysis, and investment appraisal.

Suggested study order: Read the notes for each sub-topic below → test yourself with flashcards → attempt practice questions → review exam technique.

Study resources — 1.1 What is a business?

1.1.1

Nature of businesses

Notes

1.1.2

Business functions

Notes

1.1.3

Primary, secondary, tertiary, and quaternary sectors

Notes

1.1.4

Process of starting a business

Notes

1.1.5

Opportunities of a new business

Notes

1.1.6

Challenges of a new business

Notes

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Topic 1.1 What is a business? forms a core part of Unit 1: Introduction to Business Management in IB Business Management. Mastering these concepts will strengthen your understanding of connected topics across the syllabus and prepare you for exam questions that require analysis, evaluation, and real-world application.

Frequently asked questions

What does Topic 1.1 What is a business? cover in IB Business Management?

Topic 1.1 covers what is a business? as part of the IB BM syllabus. Students learn key business concepts, tools, and frameworks that are assessed in Paper 1 (case study) and Paper 2 (structured questions).

How should I revise What is a business? for IB Business Management exams?

Start with the micro-topic notes to build understanding, then use flashcards for key terms and formulas. Practise applying concepts to case study scenarios and review how marks are allocated in IB mark schemes.

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Exam technique

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