52 of the Business glossary’s terms, each with the part of the syllabus where you first meet it.
An AO1 command term asking for one answer to be picked out from a number of possibilities, often from the case or the data.
The movement of people into a country to live and work there; emigration is the movement of people out of a country.
The legal process of registering a business as a company, which gives it a legal identity separate from that of its owners.
A method of setting budgets in which last period's budget or actual results are used as the starting point and adjusted by a percentage or amount for expected changes.
A series of small improvements to an existing product, service or process that makes it better, cheaper or more convenient without changing its basic nature or the market it serves.
The variable that is thought to influence another variable, plotted on the horizontal x-axis of a scatter diagram, such as advertising spending.
A cost that cannot be linked to a single product or service because it is shared by the whole business or several products, such as head office rent, administration and insurance.
The extent to which people see themselves as independent individuals responsible for themselves (individualism) or as members of tightly knit groups that look after them in exchange for loyalty (collectivism).
Training given to new employees to introduce them to the organisation, its culture, policies and procedures, their colleagues and their job.
The extent to which a society allows relatively free gratification of desires related to enjoying life and having fun (indulgence) rather than controlling them through strict social norms (restraint).
Collective measures taken by employees, or by employers, to put pressure on the other side in a dispute, such as an overtime ban, a work-to-rule, a go-slow, a strike or a lockout.
A geographical concentration of interconnected businesses, suppliers and related institutions in one industry, giving each firm access to shared skilled labour, specialist suppliers and knowledge.
A system in which employees share in the control and decision-making of their organisation, for example through elected representatives on the board of directors.
The relationship between the management of an organisation and its employees and their representatives, including how pay and conditions are agreed and how conflicts between them are handled.
A sustained rise in the general level of prices in an economy over time, which reduces the purchasing power of money.
A form of promotion in which a business pays or rewards individuals with a large or loyal social media following to feature or recommend its products.
A visual presentation that combines charts, icons, short text and key figures to communicate information quickly to a general audience.
Communication outside the official channels of an organisation, through personal and social contacts between employees, such as conversations at breaks, private message groups and the grapevine.
The situation in which a person receives more information than they can process effectively, so that important messages are missed or decisions are delayed.
The agreement of a person to take part in research after being told clearly who is carrying it out, what it involves and how their information will be used.
The first sale of a company's shares to the general public, after which the shares are listed and traded on a stock exchange.
The successful commercial introduction of a new or improved good, service or process, or of a new way of doing business, that creates value for customers and the business.
Creativity that produces completely new products, processes or ideas, often meeting needs that customers were not aware of before.
The resources a business uses in production, including the factors of production and bought-in materials, components and services.
The financial situation in which a person or business cannot pay its debts as they fall due, or in which its liabilities are greater than its assets.
Bringing a business activity that was previously outsourced back in-house, so that it is carried out by the business's own employees and resources.
Non-current assets that have no physical form but bring a business value, such as patents, copyrights, trademarks, licences, brands and goodwill.
Creations of the mind, such as inventions, designs, brand names, software and artistic works, that can be owned and legally protected so that others cannot use them without permission.
The price paid for borrowing money, expressed as a percentage of the amount borrowed per year; for a lender or saver, the reward for lending.
A business that operates between the producer and the final consumer in a distribution channel, such as a wholesaler, retailer or agent.
The coursework component of IB Business Management, marked by the teacher and moderated by the IB; at SL and HL it is the business research project, worth 25 marks.
Increases in average cost caused by a business's own size, mainly through problems of communication, coordination, control, motivation and bureaucracy.
Reductions in average cost that a business gains from increasing its own scale of operation, such as technical, purchasing, financial, managerial, marketing and risk-bearing economies.
Growth achieved by a business expanding its own operations with its own resources, for example by selling more, launching new products or opening new outlets; also called organic growth.
Filling a vacancy with an existing employee of the organisation, for example by promotion or redeployment.
Money raised from within the business or from its owner, such as personal funds, retained profit and the sale of assets.
Stakeholders who are members of the organisation, such as its employees, managers, directors and owners or shareholders.
The marketing of goods and services across national borders, including choosing which foreign markets to enter, how to enter them and how far to adapt the marketing mix for each one.
The network of physical devices, such as machines, vehicles, meters and wearables, embedded with sensors, software and connectivity that collect and exchange data automatically over the internet.
Estimating a value within the range of the observed data, for example by reading from a line of best fit between known points.
A measure of spread equal to the upper quartile minus the lower quartile, showing the range of the middle 50% of a set of ordered data.
A primary research method in which an interviewer asks an individual respondent questions directly, allowing answers to be explored in depth through follow-up questions.
An employee who uses entrepreneurial skills to develop new products, processes or ventures within an existing organisation, which provides the resources and bears the financial risk.
The drive to do an activity because it is interesting, enjoyable or meaningful in itself, rather than for a separate reward.
The first stage of the product life cycle, when a product is launched: sales are low, unit costs and promotion spending are high and the product usually makes a loss.
An approach to management decision-making based on a manager’s experience, instinct, feelings and judgment rather than on systematic analysis of data.
The creation of a new product, device or process, or of a new idea for one, that did not exist before; it becomes an innovation only when brought successfully into use.
Spending on capital assets, such as machinery, buildings or technology, now in the expectation of earning returns over several years in the future.
The use of quantitative techniques to assess whether an investment project is financially worthwhile, by comparing its expected returns with its cost, and to compare competing projects.
A benefit offered by a government, such as a tax holiday, a grant or cheap land, to persuade a business, often a multinational company, to invest in its country or region.
The international standard for quality management systems, setting requirements for how an organisation plans, controls and continuously improves its processes to meet customer needs; organisations are certified by independent bodies.
The international standard for environmental management systems, requiring an organisation to identify and control its environmental impacts, meet legal requirements and continuously improve its environmental performance.