IB BUSINESS MANAGEMENT COMPLETE
STUDY GUIDE PRACTICE QUESTIONS AND
ANSWERS
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales Included
, Needs The basic necessities that a person must have to survive, e.g. food, water, warmth,
shelter, and clothing.
Primary Sector Businesses involved in the cultivation or extraction of natural resources, e.g.
farming, mining, quarrying, fishing, oil exploration, and forestry.
Product Both goods and services. Goods are physical __________, e.g. cars, books, and food.
Services are intangible __________, e.g. haircuts, bus rides, education, and health care.
Quaternary Sector A subcategory of the tertiary sector, where businesses are involved in intellectual,
knowledge-based activities that generate and share information, e.g. information
communities technology and research organizations.
Secondary Sector The section of the economy where business activity is concerned with the
construction and manufacturing of products.
Sectoral Change A shift in the relative share of gross domestic product (or national output) and
employment that is attributed to each business sector.
Tertiary Sector The section of the economy where business activity is concerned with the
provision of services to customers.
Wants People's desires, i.e. the things they would like to have, e.g. a larger home, a new
smartphone, or to go on an overseas holiday.
Charities Non-profit social enterprises that provide voluntary support for good causes
(from society's point of view), such as protection of children, animals, and the
natural environment.
Cooperatives For-profit social enterprises set up, owned, and run by their members, who might
be employees and/or customers.
Company (or Corporation) A business that is owned by shareholders. It has been issued a certificate of
incorporation, giving it a separate legal identity from its owners.
Deed of Partnership The legal contract signed by the owners of a partnership. The formal deeds
specify the name and responsibilities of each partner and their share of any profits
or losses.
Incorporation There is a legal difference between the owners of a company and the business
itself. This ensures that the owners are protected by limited liability.
STUDY GUIDE PRACTICE QUESTIONS AND
ANSWERS
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales Included
, Needs The basic necessities that a person must have to survive, e.g. food, water, warmth,
shelter, and clothing.
Primary Sector Businesses involved in the cultivation or extraction of natural resources, e.g.
farming, mining, quarrying, fishing, oil exploration, and forestry.
Product Both goods and services. Goods are physical __________, e.g. cars, books, and food.
Services are intangible __________, e.g. haircuts, bus rides, education, and health care.
Quaternary Sector A subcategory of the tertiary sector, where businesses are involved in intellectual,
knowledge-based activities that generate and share information, e.g. information
communities technology and research organizations.
Secondary Sector The section of the economy where business activity is concerned with the
construction and manufacturing of products.
Sectoral Change A shift in the relative share of gross domestic product (or national output) and
employment that is attributed to each business sector.
Tertiary Sector The section of the economy where business activity is concerned with the
provision of services to customers.
Wants People's desires, i.e. the things they would like to have, e.g. a larger home, a new
smartphone, or to go on an overseas holiday.
Charities Non-profit social enterprises that provide voluntary support for good causes
(from society's point of view), such as protection of children, animals, and the
natural environment.
Cooperatives For-profit social enterprises set up, owned, and run by their members, who might
be employees and/or customers.
Company (or Corporation) A business that is owned by shareholders. It has been issued a certificate of
incorporation, giving it a separate legal identity from its owners.
Deed of Partnership The legal contract signed by the owners of a partnership. The formal deeds
specify the name and responsibilities of each partner and their share of any profits
or losses.
Incorporation There is a legal difference between the owners of a company and the business
itself. This ensures that the owners are protected by limited liability.
