Read every command term as an instruction about depth, write full-mark definitions and “explain two” answers, use the case beyond names, and spend your time in proportion to the marks.
Every question in Business Management has the same four parts. A command term tells you what to do (“define”, “explain”, “evaluate”). The content tells you which idea from the course to use (“franchising”, “the current ratio”, “democratic leadership”). The context tells you which organisation, in the case study or stimulus material, the answer must be about. The mark allocation in square brackets tells you how much to write.
Most lost marks come from misreading one of these parts: explaining when a judgment was asked for, writing a general answer when a business was named, or writing a page for 2 marks and running out of time for 10. Answer technique is the habit of reading all four parts before writing a word.
Part of the question | Example | What it decides |
|---|---|---|
Command term | Explain two advantages… | The type of thinking and the depth: knowledge, reasons, a judgment or a calculation. |
Content | …of growing by franchising… | Which concept, tool or theory the answer must use, with its correct terminology. |
Context | …for Tamarind Table… | The organisation the answer must be applied to, using its facts and figures. |
Marks | [4] | How many developed points are wanted and how long to spend. |
The IB groups the skills it assesses into four assessment objectives (AOs). Each command term belongs to one of them, so the command term is a signal of which skill the examiner is looking for. The objectives form a ladder: each one builds on the skills below it, so an evaluation still needs accurate knowledge and analysis inside it.
Objective | What it tests | Command terms | Typical marks |
|---|---|---|---|
AO1 Knowledge and understanding | Knowing terms, tools, theories and features accurately. | Define, describe, identify, list, outline, state | [1]–[2] |
AO2 Application and analysis | Using knowledge on the case: reasons, causes, effects and links. | Analyse, apply, comment, demonstrate, distinguish, explain, suggest | [2]–[6] |
AO3 Synthesis and evaluation | Weighing arguments and evidence to reach a supported judgment. | Compare, contrast, compare and contrast, discuss, evaluate, examine, justify, recommend, to what extent | [10] (and Paper 3’s plan) |
AO4 Use of appropriate skills | Calculating, drawing and organising data correctly. | Annotate, calculate, complete, construct, determine, draw, label, plot, prepare | [1]–[6] |
AO3 questions in Paper 1 and Paper 2 are almost always the 10-mark extended response questions in Section B, and in Paper 3 (HL) the final plan of action. AO1, AO2 and AO4 fill the structured questions in Section A and the first parts of Section B. Paper 2 leans on AO4, because its stimulus is built around numbers, charts and statements.
Each topic in the course is taught to a particular depth. A topic taught to AO2 depth, such as the reasons for resistance to change, can be examined with “explain” or “describe”, but never with “evaluate” or “discuss”. A topic taught to AO3 depth, such as leadership styles, can be examined with any command term from “define” to “to what extent”.
The rule tells you which topics can appear as a 10-mark question (growth methods, leadership styles, sources of finance, investment appraisal, the marketing mix, location and the other AO3 topics), so you can prepare evaluation for those.
AO1 command terms ask you to show that you know something accurately. They do not ask for reasons, effects or opinions. The answers are short, but they must be precise: in a 1- or 2-mark question there is no room for a vague word.
Command term | Meaning | What a good answer looks like |
|---|---|---|
Give the precise meaning of a word, phrase or concept. | One or two sentences that would identify the term to someone who has never met it. No example needed. | |
Give a detailed account. | The main features of something, with enough detail that a reader could picture it, but no reasons. | |
Pick out an answer from a number of possibilities. | A word or phrase, often taken from the case or the data (“Identify two stakeholders of X”). | |
List | Give a sequence of brief answers with no explanation. | Single words or short phrases, one per point. |
Give a brief account or summary. | Usually two linked points: what it is, plus one feature or consequence. | |
Give a specific name, value or brief answer without explanation or calculation. | A word, a phrase or a number. |
“Define” is the most common command term in Section A, usually worth 2 marks and often taken from a word in the case (“Define the term franchise (line 14)”). The markscheme gives 1 mark for a definition that shows partial understanding and 2 marks for one that is full and precise. Most students lose the second mark because their definition is vague or incomplete.
A full definition has two parts. The first places the term in its category (“an agreement”, “a measure”, “a source of finance”, “a leadership style”). The second gives the feature that separates it from everything else in that category. “A franchise is a business” has a category but nothing distinctive; “a franchise is when a business uses another firm’s name” has a feature but no category and leaves out the payment that defines the deal.
Term | 1-mark answer (partial) | 2-mark answer (full) |
|---|---|---|
Franchise | When a company lets other people open shops with its name, like McDonald’s. | An agreement in which a business (the franchisor) sells another business (the franchisee) the right to trade using its brand, products and methods, in return for a fee and usually a share of revenue (royalty). |
Market share | How much of the market a business has. | A business’s sales revenue (or sales volume) as a percentage of the total sales of the market in a given period. |
Liquidity | Having enough money. | The ability of a business to pay its short-term debts (current liabilities) as they fall due, by turning its current assets into cash. |
Delegation | Giving work to other people. | The passing of authority to make decisions or complete tasks from a manager to a subordinate, while the manager remains responsible for the outcome. |
Stakeholder | Someone involved in the business, such as a shareholder. | An individual or group with an interest in, or who is affected by, the activities and decisions of an organisation. |
The partial answers share three faults: vagueness (“how much”, “enough money”), an example in place of a meaning (“like McDonald’s”), and in the liquidity answer the wrong idea altogether, since “having money” describes cash, not the ability to meet short-term debts.
These terms differ mainly in how much detail they ask for. “State” and “identify” want the bare fact: a name, a value, a word from the case. “Outline” wants a short account, usually two linked points for 2 marks. “Describe” wants a fuller account of the features, still without reasons. None of them needs analysis or a judgment. A useful test is the word “because”, which an answer to “describe” rarely needs and an answer to “explain” almost always does.
AO2 command terms ask you to use what you know on a particular situation. Every AO2 answer needs reasons (how and why something happens) and application (why it happens for this business); an answer that could have been written without reading the case is capped below full marks.
Command term | Meaning | What a good answer looks like |
|---|---|---|
Give a detailed account including reasons or causes. | A point, the reason for it and its effect, linked to the business in the case. | |
Break down to bring out the essential elements or structure. | The parts of an issue and how they link: causes, effects and the chain between them, often with a tool or a calculation. | |
Apply | Use an idea, principle or theory on a given problem. | The theory named, then each part matched to evidence in the case. |
Give a judgment based on a statement or the result of a calculation. | What the figure means for this business: good or bad, compared with what, and why it matters. | |
Demonstrate | Make clear by reasoning or evidence, with examples. | A claim supported step by step with evidence from the case. |
Make clear the differences between two or more items. | Each difference stated for both items, side by side. | |
Propose a solution or possible answer. | A realistic option for the business, with the reason it would help. |
An explanation is a chain: a point, a reason and a consequence. The connecting words show the chain to the examiner: “because”, “so”, “this means that”, “which leads to”, “as a result”. A list of points without these links is a description, however many points it has.
Compare two answers to “Explain one disadvantage for Kirra Surf Co. of being a sole trader.” The first says: “Sole traders have unlimited liability, which is risky.” The second says: “As a sole trader, the owner of Kirra Surf Co. has unlimited liability, so if the shop’s planned expansion into surfboard repairs fails and debts cannot be paid, she could lose personal assets such as her home. This risk may make her unwilling to borrow for the expansion, which slows the business’s growth.” The second has the point, the reason, the consequence and the case.
A question such as “Explain two advantages for X of…” [4] is usually marked as two separate halves of 2 marks. Each half earns 1 mark for a relevant point that is explained and a second mark when that point is developed and applied to the business in the case. Two general points earn about 2 marks; two applied points earn 4.
Write the two points in separate paragraphs so the examiner sees two distinct points, make sure they really are different (“lower costs” and “higher profit” are usually one point seen twice), and spend about the same time on each half.
“Analyse” asks for more structure than “explain”. A good analysis breaks the issue into its parts, often with a tool such as SWOT analysis or a calculation, and shows how the parts affect each other. “Distinguish” wants the differences between two things, each stated for both: “A sole trader has unlimited liability, whereas a shareholder in a privately held company has limited liability.” “Suggest” asks for a sensible proposal with a reason; there is rarely one right answer, so what earns the marks is a proposal that fits the case.
“Comment” usually follows a calculation (“Comment on your answer to (b)” [2]). The examiner wants a judgment about what the number means, not a repeat of it. A strong comment compares the figure with something (last year, a competitor, a benchmark such as a current ratio of 1.5–2) and says what it means for the business in the case.
AO3 command terms ask you to weigh things up and decide. They are the terms of the 10-mark extended responses, and they share three demands: arguments on more than one side, evidence from the case behind each argument, and a clear judgment at the end that follows from what came before. The differences between them are mainly in what the judgment is about.
Command term | Meaning | What the judgment is about |
|---|---|---|
A balanced review of a range of arguments or factors, with a clear conclusion supported by evidence. | Which side of the issue is stronger for this business, and why. | |
An appraisal that weighs up strengths and limitations. | How good a decision, strategy or method is, all things considered. | |
Consider an argument or concept in a way that uncovers its assumptions and interrelationships. | What the issue depends on and what has been taken for granted. | |
Present an advisable course of action, with supporting evidence and reasons. | Which option the business should choose, and under what conditions. | |
Give valid reasons or evidence to support an answer or conclusion. | Why a given choice or conclusion is right. | |
Consider the merits or otherwise of an argument, with conclusions supported by evidence and sound argument. | How far a claim is true: fully, largely, partly or hardly at all. | |
Compare / contrast / compare and contrast | Similarities, differences, or both, referring to both items throughout. | How alike or different two items are, with each point made about both. |
A judgment answers the exact question (“should”, “how far”, “which”), gives the main reason and states what the decision depends on. “To what extent” wants a degree (“to a large extent, because…”); “recommend” wants an option and its conditions. Building a full answer around these demands is covered in “The 10-mark extended response”.
AO4 command terms ask you to carry out a skill: work out a figure, draw a chart, put data into a statement. These questions appear mostly in Paper 2. They are marked for accuracy and for the method shown, so the presentation of the working is part of the answer.
Command term | Meaning | What earns the marks |
|---|---|---|
Obtain a numerical answer, showing the relevant stages of the working. | The formula, the figures put into it, the answer with its unit ($, %, days, units) and rounding as asked. | |
Display information in a diagrammatic or logical form. | A complete chart: title, labelled axes with scales, labelled lines and the key points marked (for example a break-even chart or an organisation chart). | |
Put given data into a suitable format. | The correct layout, such as the IB layout for a statement of profit or loss or a cash flow forecast, with every line named and subtotals correct. | |
Draw | Represent by an accurate, labelled diagram or graph, to scale. | A ruler for straight lines, points plotted correctly, labels on every line. |
Complete | Add missing information or data. | The gaps in a table, network or chart filled in correctly. |
Label / annotate | Add labels; add brief notes to a diagram. | Every requested feature named, and short notes where asked. |
Plot | Mark the position of points on a diagram. | Points placed accurately against the scale. |
Determine | Obtain the only possible answer. | The single correct value or item, with the reasoning that leads to it. |
The formula sheet gives the ratio and investment appraisal formulas, but many others are not on it, including break-even quantity, margin of safety, market share and the payback period. These must be learnt. A full list of the formulas, with worked examples, is in “Formulae and calculations”.
The quickest way to feel the difference between command terms is to answer the same topic at several depths. The five questions on Tamarind Table all use the same invented case.
A “state” question is answered in a phrase; the only risk is vagueness (“money from franchisees” instead of naming the royalty).
The description gives detail but no reasons, which is exactly what “describe” asks for.
Each half has a point, a reason, a consequence and a fact from the case.
Analysis breaks the issue into parts (reach and consistency) and shows how they interact. It ends by naming what the outcome depends on, but it does not decide whether franchising is right for the business. That decision belongs to AO3.
Only the evaluation reaches a decision: it weighs the arguments, considers an alternative, gives a conditional judgment and admits what the case does not say.
Command term | Marks | Length (roughly) | Contains reasons? | Uses the case? | Reaches a judgment? |
|---|---|---|---|---|---|
State | 1 | A phrase | No | Sometimes | No |
Describe | 2 | 2–3 sentences | No | Yes | No |
Explain | 4 | 2 short paragraphs | Yes | Yes, in every point | No |
Analyse | 4 | 2 paragraphs | Yes, with links between parts | Yes, in every point | No (states what the outcome depends on) |
Evaluate | 10 | About 1–1.5 pages | Yes | Yes, throughout | Yes, justified, with conditions |
The command term sets a ceiling as well as a floor. An answer below the level asked for (a description for “explain”) is capped; an answer above it (an evaluation for “explain”) gets no extra marks and costs time another question needed.
Short questions are marked against a short list of points; once those points are made, the answer is complete. The time saved is worth most in the 10-mark question, where planning and balance decide the markband.
If the question says… | Stop when you have… | Don’t add… |
|---|---|---|
Define [2] | Given the category and the distinguishing feature. | Examples, advantages, history of the term. |
Describe / outline [2] | Given two linked features. | Reasons or judgments. |
Explain two… [4] | Explained and applied two distinct points. | A third point, or a conclusion. |
Calculate [2] | Shown the formula, working, answer and unit. | Comment, unless the question asks for it. |
Analyse [4]–[6] | Shown the parts of the issue and how they link, applied to the case. | A final verdict. |
Discuss / evaluate [10] | Weighed both sides with evidence and reached a justified, conditional judgment. | A list of every theory you know. |
Every question with a named business must be answered for that business. Examiners call this application: showing how a concept works in the particular situation of the case. In the 10-mark markbands, the use of the case is one of the main things that separates the bands, and the lower bands describe a use that is “superficial” or limited to names.
Putting the business’s name into a general sentence is not application: if the name can be swapped for “Nike” and the sentence still works, the case has not been used. Application uses the facts that make this case different: its figures, problems, objectives, people and market.
Level | Example (on Tamarind Table) | Why |
|---|---|---|
Name only | Franchising allows Tamarind Table to grow quickly. | True of any business. Earns little beyond the knowledge shown. |
Fact from the case | Franchising allows Tamarind Table to grow despite the sisters lacking finance. | Uses a feature of this case, so the point is now applied. |
Fact used in the argument | Because franchisees fund their own restaurants, the sisters’ lack of finance no longer blocks the 30-outlet target, which would take far longer through internal growth. | The fact drives the reasoning and supports a conclusion: this is effective use of the case. |
Fact questioned | The case does not say whether the recipes can be taught to cooks outside the business, so the speed of growth may be limited by training, not finance. | Shows the limits of the information given, which the top markband rewards. |
Quote figures and work with them. “Sales fell from $2.4m to $1.9m, a fall of about 21%” uses the data; “sales fell” only reports it.
Use line references when the case has numbered lines in Paper 1 (“the head chef’s warning (line 23)”). They show the examiner exactly which evidence an argument rests on.
Use the business’s objectives and constraints. A recommendation that ignores a stated objective (“to remain family-owned”) or constraint (“limited cash”) is not applied, even if it is sensible in general.
Infer carefully. Reasonable inferences are rewarded (“with only three restaurants, the sisters probably supervise each one”), but don’t invent facts.
YouTubeIn Paper 1, part of the case is released in advance in the pre-released statement, so you can prepare its industry and context. In Paper 2 the stimulus is unseen and mostly numerical, so application often means using the data you have just calculated. In both, real-world examples you know (a company that grew by franchising, a brand damaged by poor quality) can support a point, but they add to the case rather than replace it.
Precise business terms are part of the content being assessed. The markbands for extended responses refer to correct terminology, and many short-answer marks depend on one exact word. Using “profit” when the answer needs “cash”, or “shareholders” when it needs “stakeholders”, changes the meaning and often makes the point wrong.
Use the IB’s term for each concept consistently (statement of financial position, stock, debtors, sales revenue, cost of sales), and avoid everyday words where a business term exists: “the workers will be happier” is weaker than “employee motivation is likely to rise”.
Often confused | The difference |
|---|---|
Profit / cash | Profit is revenue minus costs over a period; cash is the money the business actually holds. A profitable business can run out of cash if customers pay late. |
A stakeholder is anyone with an interest in the business; a shareholder is one kind of stakeholder, who owns part of a company. | |
Revenue / profit | Revenue is the value of sales; profit is what remains after costs. Rising revenue can come with falling profit. |
Productivity / production | Production is the total output; productivity is output per unit of input (per worker or per hour). |
Liquidity / profitability | Liquidity is the ability to pay short-term debts; profitability is profit relative to sales or capital. |
Market share / market size | Market share is one business’s part of the market; market size is the whole market’s sales. |
The marks in brackets are also a time budget. Paper 1 works out at three minutes a mark overall, but about a quarter of an hour of that goes on reading and annotating the case, which leaves a little over two minutes a mark for writing. Paper 2 gives a little over two minutes a mark, and its stimulus is read in parts as you go.
Question | Paper 1 (after reading the case) | Paper 2 | Typical length |
|---|---|---|---|
Define [2] | 4–5 min | 3–4 min | 1–2 sentences |
Explain two… [4] | 8–9 min | 7–8 min | 2 short paragraphs |
Calculate [2] | — | 3–4 min | Formula, working, answer |
Construct [4] | — | 8–10 min | A complete, labelled chart or statement |
Extended response [10] | About 30 min (including planning) | 20–22 min (including planning) | About 1–1.5 pages |
On Paper 1 (20 marks in Section A, 10 in Section B), a reasonable split is about 10 minutes reading and annotating after the reading time, 45 minutes for Section A, 30 for Section B and 5 to check. If a short question goes badly, leave a space and come back: an unfinished 10-mark answer loses far more than a missing definition.
A fixed routine turns answer technique into a habit, so that under pressure the right steps happen automatically.
Read the command term and decide the depth: knowledge, reasons, judgment or a skill.
Circle the content: the concept, tool or theory the question is about. If two concepts are named, both must be used.
Check the context: which business, and which facts in the case relate to this question.
Check the marks and set the time and length.
Plan briefly for anything worth 4 marks or more: two points for “explain two”, both sides and a judgment for 10 marks.
Write, using business terms and case evidence in every point.
Reread the command term and check that the answer does exactly what it asks.
Try the routine on five questions from different units. Every business named in them is invented.
I can name the assessment objective of every command term and the depth it asks for.
I can write a full 2-mark definition: category plus distinguishing feature, with no example and no repetition of the term.
I can answer “explain two…” with two distinct points, each explained and applied to the case.
I can comment on a calculated figure by comparing it and saying what it means for the business.
I can use facts and figures from the case in every point, beyond the business’s name.
I can stop at the depth the command term asks for and save time for the 10-mark question.
I can use the correct term for each concept and avoid the commonly confused pairs.
I can plan my time using the marks: a little over two minutes a mark for writing on either paper, after reading the case in Paper 1.
With a free account, Augment remembers where you stopped in the notes and which questions you have marked.