IB Business Management - Units 1.1 & 1.2

Change (IB Concept)

Internal and external influences that modify business operations, goals, or products over time.

Creativity (IB Concept)

The process of bringing innovation into a business without causing conflict.

Ethics (IB Concept)

Moral values and principles that guide business decision-making and conduct.

Sustainability (IB Concept)

Meeting present operational needs without compromising the capability of future generations.

Business

An organization that combines resources to create goods or services meeting consumer needs.

Goods

Tangible products that consumers can physically own and take home.

Services

Intangible products provided to consumers without physical ownership.

Human Inputs

The workforce, labor, and specialized skills required in business production.

Financial Inputs

The capital and funds necessary to start, operate, and maintain a business.

Physical Inputs

Raw materials, machinery, premises, and equipment used in creating output.

Enterprise

The business idea, vision, and initiative required to organize production inputs.

Labour-intensive Production

Production relying primarily on high human labor inputs relative to machinery.

Capital-intensive Production

Production relying heavily on machinery, land, and technology relative to labor.

Human Resources Department

Functional area responsible for recruiting, training, rewarding, and managing workforce personnel.

Finance and Accounts Department

Functional area managing cash flow, budgeting, payment systems, and financial record-keeping.

Marketing Department

Functional area overseeing product promotion, pricing, packaging, and sales distribution.

Operations Management Department

Functional area ensuring production processes run efficiently to output goods or services.

Primary Sector

Economic sector focused on extracting raw materials and natural resources.

Secondary Sector

Economic sector focused on manufacturing and assembling raw materials into finished goods.

Tertiary Sector

Economic sector providing commercial and personal services to consumers and businesses.

Quaternary Sector

Economic sector focused on knowledge-based activities, research, IT, and consultancy.

Entrepreneur

An individual who launches and manages a venture, accepting financial risks and rewards.

Business Plan

A formal document outlining business goals, market strategies, and financial projections.

Private Sector

Economic segment run by individuals and private entities primarily aiming for profit.

Public Sector

Economic segment owned and operated by government to provide essential public services.

Profit Formula

The financial gain computed by subtracting total costs from total revenue.

Unlimited Liability

Legal risk where business owners remain personally liable for all debt obligations.

Limited Liability

Legal protection restricting an investor's potential losses strictly to their invested capital.

Sole Trader

An unincorporated business entity owned and operated by a single individual.

Partnership

A business structure jointly owned and managed by two or more individuals.

Privately Held Company

A business with limited liability whose private shares cannot be traded publicly.

Publicly Held Company

A corporation whose shares are freely bought and sold on stock exchanges.

For-Profit Social Enterprise

A commercial business that targets profits while pursuing explicit social goals.

Cooperative

A member-owned enterprise operated democratically to meet shared social and economic goals.

Public Sector Company

A state-run organization established to deliver essential public goods or services.

Public-Private Partnership

A venture combining public sector governance with private commercial management and investment.

Non-Profit Social Enterprise

An entity aiming for social objectives that reinvests all revenue surpluses.

Non-Governmental Organization (NGO)

A non-profit, independent entity addressing social, humanitarian, or civic issues.

Charity

A philanthropic non-profit entity providing charitable relief to populations in need.