IB · Diploma Programme · IBDP BM (SL/HL)
Business Management — Keywords & Key Terms — Definitions Glossary (2026)
International Baccalaureate Diploma Programme Business Management (SL/HL)
Topic-by-topic keywords, key terms and definitions for precise exam language—separate from our revision checklists (topic coverage) and formula sheets (equations).
Keywords & Key Terms — definitions
Examiner-style keywords and definitions organised by syllabus topic. Terms are tagged Essential (start here), Core (typical exam standard), and Advanced for harder distinctions — tick each row when you can recall it. Your progress is saved in this browser for this list.
IB Diploma Programme Business Management (IBDP BM (SL/HL))
IB Diploma Programme Business Management (IBDP BM (SL/HL))
International Baccalaureate Diploma Programme Business Management (SL/HL)
Topics map to the five IB DP Business Management units: Introduction to business management, Human resource management, Finance and accounts, Marketing, and Operations management. HL extends each unit with quantitative and strategic content.
Mark schemes: IB Business Management mark schemes prize precise definitions, accurate use of business terminology, application to the case study (especially in Paper 1) and balanced evaluation supported by relevant theory.
Active recall: 0 / 43 terms ticked
| Recalled | Topic | Level | Keyword | Definition |
|---|---|---|---|---|
| Business Organisation and Environment | Essential | Sole trader | Business owned and run by a single individual with unlimited liability. | |
| Business Organisation and Environment | Essential | Partnership | Business owned by two or more partners sharing profits, losses and (usually) unlimited liability. | |
| Business Organisation and Environment | Core | Private limited company (Ltd) | Incorporated business with limited liability whose shares are not traded publicly. | |
| Business Organisation and Environment | Core | Public limited company (PLC) | Incorporated business with limited liability whose shares are traded on a stock exchange. | |
| Business Organisation and Environment | Core | Mission statement | Concise declaration of an organisation's core purpose and reason for existence. | |
| Business Organisation and Environment | Core | Vision statement | Aspirational description of what an organisation aims to become in the long term. | |
| Business Organisation and Environment | Core | SWOT analysis | Internal Strengths and Weaknesses; external Opportunities and Threats. | |
| Business Organisation and Environment | Advanced | PESTLE analysis | External-environment framework: Political, Economic, Social, Technological, Legal, Environmental factors. | |
| Business Organisation and Environment | Advanced | Stakeholder | Any individual or group with an interest in a business's activities and outcomes. | |
| Marketing | Essential | Marketing | Process of identifying and satisfying customer needs profitably. | |
| Marketing | Core | Marketing mix (4Ps) | Product, Price, Place and Promotion — the controllable variables a firm uses to influence demand. | |
| Marketing | Core | Market segmentation | Dividing a market into distinct groups of buyers with similar needs or characteristics. | |
| Marketing | Core | Target market | Specific segment of customers a firm aims to serve with its marketing mix. | |
| Marketing | Core | Unique selling point (USP) | Feature that distinguishes a product from competitors in the eyes of consumers. | |
| Marketing | Core | Boston (BCG) matrix | Portfolio analysis classifying products as Stars, Cash Cows, Question Marks or Dogs. | |
| Marketing | Advanced | Product life cycle | Stages a product passes through: introduction, growth, maturity, decline. | |
| Marketing | Advanced | Ansoff matrix | Strategic framework for growth: market penetration, market development, product development, diversification. | |
| Operations Management | Essential | Production | Process of converting inputs (resources) into outputs (goods or services). | |
| Operations Management | Core | Job production | Production of one-off or bespoke items to specific customer requirements. | |
| Operations Management | Core | Batch production | Production of groups of identical items in batches before switching to another product. | |
| Operations Management | Core | Flow production | Continuous mass production of standardised products on a production line. | |
| Operations Management | Core | Quality control | Inspection of finished goods to identify defects after production. | |
| Operations Management | Core | Quality assurance | Building quality into every stage of the production process to prevent defects. | |
| Operations Management | Core | Lean production | Approach minimising waste (muda) in resources, time and effort while maintaining quality. | |
| Operations Management | Advanced | Just-in-time (JIT) | Inventory system producing or ordering stock only as it is needed, minimising holding costs. | |
| Operations Management | Advanced | Kaizen | Japanese principle of continuous incremental improvement driven by all employees. | |
| Finance and Accounts | Essential | Revenue | Total income from sales of goods or services: price × quantity sold. | |
| Finance and Accounts | Essential | Profit | Revenue minus total costs over a given period. | |
| Finance and Accounts | Core | Break-even output | Output level where total revenue equals total costs: Fixed costs ÷ Contribution per unit. | |
| Finance and Accounts | Core | Contribution per unit | Selling price per unit minus variable cost per unit. | |
| Finance and Accounts | Core | Return on capital employed (ROCE) | Operating profit ÷ Capital employed × 100; measures efficiency of capital use. | |
| Finance and Accounts | Core | Current ratio | Current assets ÷ Current liabilities; measures short-term liquidity. | |
| Finance and Accounts | Core | Gearing ratio | Long-term debt ÷ Capital employed × 100; measures reliance on debt finance. | |
| Finance and Accounts | Advanced | Net present value (NPV) | Present value of future cash flows minus initial investment; positive NPV indicates a worthwhile project. | |
| Finance and Accounts | Advanced | Internal rate of return (IRR) | Discount rate at which NPV equals zero; compared with cost of capital. | |
| Finance and Accounts | Advanced | Payback period | Time taken for cumulative cash inflows to recover the initial investment. | |
| Human Resource Management | Core | Recruitment | Process of attracting and selecting suitable candidates for a vacancy. | |
| Human Resource Management | Core | Maslow's hierarchy of needs | Five-level pyramid (physiological, safety, social, esteem, self-actualisation) of human motivation. | |
| Human Resource Management | Core | Herzberg's two-factor theory | Motivators (achievement, recognition) drive satisfaction; hygiene factors (pay, conditions) prevent dissatisfaction. | |
| Human Resource Management | Core | Tannenbaum & Schmidt continuum | Range of leadership styles from boss-centred (autocratic) to subordinate-centred (laissez-faire). | |
| Human Resource Management | Core | Handy's organisational cultures | Power, role, task and person cultures describe how organisations are structured and behave. | |
| Human Resource Management | Advanced | Empowerment | Delegating authority to employees to make decisions affecting their work. | |
| Human Resource Management | Advanced | Organisational structure | Formal arrangement of roles, hierarchy and reporting lines within a business. |
Pair this with our revision checklists, formula sheets hub and past paper finder.
Business Management (IBDP BM (SL/HL)) — Keywords & Key Terms FAQ
- What is on this IB Diploma Programme Business Management keywords and key terms list?
- It is a topic-organised glossary of important business management terms with short, exam-style definitions aligned to International Baccalaureate Diploma Programme Business Management (SL/HL) (IBDP BM (SL/HL)). It is designed for “define”, “state”, “outline” and “explain” questions where precise vocabulary earns marks.
- How should I use this Business Management glossary alongside past papers?
- Tick terms when you can recall them without reading the answer, then check your wording against mark schemes. Pair vocabulary practice with past papers for Diploma Programme Business Management (IBDP BM (SL/HL)) so you apply terms in context.
- Is this the same as a revision checklist or a formula sheet?
- No. Revision checklists help you track which syllabus topics you have covered and your confidence—separate pages on Tutopiya. Formula sheets summarise equations and quantitative relationships. This page is only a definitions and key-terms glossary for Business Management.
- Can I download this Business Management keywords and key terms list for free?
- Yes. After a quick free sign-up you can download a UTF-8 CSV (opens in Excel or Google Sheets) or open a print-friendly page and save as PDF. Browsing the list on the page is free.
- Is this Business Management list aligned to the IBDP BM (SL/HL) specification?
- Topic groupings and wording follow International Baccalaureate Diploma Programme Business Management (SL/HL) for IB Diploma Programme. Always confirm final learning objectives and any regional options in your official specification and recent examiner reports for your exam session.
- Why focus on definitions instead of full notes?
- Mark schemes reward correct technical terms and clear links between ideas. A compact glossary lets you drill the exact language examiners expect for Business Management at Diploma Programme, separate from longer notes or topic trackers.