IB Business and Management – definitions for paper 1 – Flashcards

The portion of the economy concerned with the direct extraction of materials from Earth's surface, generally through agriculture, although sometimes by mining, fishing, and forestry.

The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.

Business organizations that operate in industries involved in the provision of services.

The moral principles that guide business decision-making. Ethics are the beliefs of what society considers to be morally right or wrong.

The general long-term goals of an organization. They are broadly expressed as vague and unquantifiable statements such as "to provide high quality education to the local community" Often expressed in the mission statement.

Refers to managers and leaders that adopt an authoritarian style by making all the decisions rather than delegating any responsibility to their subordinates. Instead, the autocratic simply tells others what to do.

Refers to the various ways that businesses organise their human resources. The framework of this is typically hierarchical and shown in an organizational chart, showing lines of authority and the channels of communication within the organization.

Hierarchical structure, with many levels of management and supervision. There are long chains of commands from the top of the organisation down to the bottom of the organisation.

The vast-majority of decision making is done by a very small number of people, usually the senior management team, who hold onto decision-making authority and responsibility