IB Business Topic 1 Review

What are the main objectives of businesses?

• Minimize profit, decrease market share, achieve decline, and ignore sustainability

• Maximize profit, increase market share, achieve growth, and maintain sustainability

• Maximize profit, decrease market share, achieve decline, and ignore sustainability

• Maximize loss, decrease market share, achieve stagnation, and ignore sustainability

Explain the concept of stakeholders in a business.

• Only the employees of the business

• Individuals or groups who have an interest in the success of a business

• People who are not affected by the business

• Those who have no interest in the success of the business

Discuss the different forms of business organizations.

• Limited liability company, franchise, LLC

• Sole trader, conglomerate, joint venture

• Sole proprietorship, partnership, corporation, and cooperative

• Non-profit organization, charity, trust

What are the factors influencing the choice of location for a business?

• Color of the building

• Number of employees in the business

• Distance from the nearest park

• Proximity to customers, access to resources, cost of labor, infrastructure, government policies, and competition

Explain the concept of economies of scale and diseconomies of scale.

• Economies of scale and diseconomies of scale refer to the cost advantages and disadvantages that a business can experience as it increases its scale of production.

• Economies of scale and diseconomies of scale refer to the different flavors of ice cream available in the cafeteria

• Economies of scale and diseconomies of scale refer to the types of music played in the workplace

• Economies of scale and diseconomies of scale refer to the weather patterns affecting business costs

Discuss the impact of globalization on businesses.

• Globalization leads to decreased competition for businesses

• Globalization only benefits large corporations

• Globalization has led to increased competition, access to new markets, and the need for businesses to adapt to different cultures and regulations.

• Globalization has no impact on businesses

What are the different types of market structures?

• Perfect competition, monopolistic competition, oligopoly, and monopoly

• Gross domestic product, Inflation rate, Unemployment rate, Consumer price index

• Sole proprietorship, Partnership, Corporation, Limited liability company

• Supply and demand, Barter system, Command economy, Mixed economy

Explain the concept of price elasticity of demand.

• Price elasticity of demand measures the impact of advertising on consumer demand.

• Price elasticity of demand measures the responsiveness of quantity demanded to a change in price.

• Price elasticity of demand measures the level of competition in the market.

• Price elasticity of demand measures the responsiveness of quantity demanded to a change in supply.

Discuss the importance of branding for businesses.

• Businesses can succeed without any branding efforts

• Branding has no impact on customer loyalty or differentiation

• Branding is only important for large corporations

• Branding helps in creating a unique identity, building customer loyalty, and differentiating from competitors.

What are the key components of a business plan?

• Customer service

• Executive summary, company description, market analysis, organization and management, product line or service, marketing and sales, funding request, financial projections, and appendix

• Office supplies

• Employee benefits