IB Diploma Programme (DP) - SL & HL · Business management

1.1 What is a business?: Practice Questions

5 multiple-choice questions marked as you go, and 5 written questions with worked solutions. All on 1.1 What is a business?.

10 questions26 marksFree, no account

Question 1

1 mark

Which of the following is an example of a capital good for a professional photography studio?

Question 2

1 mark

Consider a scenario where a business experiences industrial action due to a wage dispute. Which business function is primarily responsible for negotiating with labor unions to resolve this?

Question 3

1 mark

A large multinational furniture retailer sources timber from sustainably managed forests (primary sector), processes it in its own automated factories (secondary sector), and sells the finished products through its global chain of retail stores (tertiary sector). Recently, the firm established a specialized R&D department focused on developing biodegradable polymer coatings (quaternary sector).

Which of the following best evaluates the strategic rationale for this firm's vertical integration across all four sectors in terms of value added?

Question 4

1 mark

In economics and business management, which of the following is defined as a consumer non-durable good?

Question 5

1 mark

How does the marketing function typically interact with the operations management function when launching a new product?

Question 6

2 marks

State the primary function of a business operating in the tertiary sector of the economy.

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Question 7

3 marks

Explain one reason why an individual might choose to become an intrapreneur within a large corporation rather than an independent entrepreneur.

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Question 8

5 marks

Explain how the four factors of production (land, labor, capital, and enterprise) are combined by an entrepreneur to produce a marketable output.

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Question 9

6 marks

A global electronics corporation is expanding into the quaternary sector by investing in a new Research and Development (R&D) facility.

(a) Outline two reasons why a business might choose to move its activities toward the quaternary sector. [2]
(b) Discuss the impact on a country's economic structure as it moves from being dominated by the secondary sector to being dominated by the tertiary and quaternary sectors. [4]

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Question 10

5 marks

An entrepreneur is considering launching a new mobile application that connects local farmers directly with urban consumers.

(a) Distinguish between capital-intensive and labor-intensive production processes in the context of this new business venture. [2]
(b) Explain the role of enterprise as a factor of production in transforming the entrepreneur's idea into a functioning business. [3]

Write your answer out first, then check it against the worked solution.

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