IBDP Business Management - Core Concepts (Easy)

Front

Define a 'business' in the context of Business Management.

Back

A business is an organization that combines human, physical, and financial resources to produce goods or services. Its primary goal is to satisfy customer needs while coordinating functions like operations, marketing, and finance to achieve objectives.

Front

What is 'unlimited liability'?

Back

Unlimited liability means the business owner is personally responsible for all debts incurred by the business. If the business fails, the owner's personal assets (e.g., house, car) can be seized to pay creditors. It applies to sole traders and general partnerships.

Front

Distinguish between a 'mission statement' and a 'vision statement'.

Back

A mission statement outlines the organization's current purpose, primary objectives, and approach to achieve them (who we are and what we do). A vision statement describes the desired future position or aspiration of the business (where we want to be).

Front

Define 'social enterprise'.

Back

A social enterprise is a business with specific social objectives as its primary goal (e.g., environmental protection, job creation for disadvantaged groups) rather than maximizing profit for shareholders. Surpluses are typically reinvested into the social mission.

Front

What is 'span of control'?

Back

Span of control refers to the number of subordinates that a manager is responsible for directly supervising. A 'wide' span implies many subordinates per manager (flat structure), while a 'narrow' span implies few subordinates (tall structure).