Free Practice Questions for IB Business Management SL

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Key Facts: IB Business Management SL Exam

First exams 2024

New syllabus

IBO Business Management subject brief

150 hours

SL teaching time

IB Diploma Programme guide

3 components

Paper 1, Paper 2, Internal Assessment

IBO assessment outline

100

Free practice questions here

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IB Business Management SL (new syllabus first exams 2024) is assessed by Paper 1 pre-released case study (35%), Paper 2 common case study (40%), and an Internal Assessment Research Project (25%). The syllabus covers five units plus quantitative tools and strategic analysis.

Sample IB Business Management SL Practice Questions

Try these sample questions to review concepts for the IB Business Management SL exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which sector of the economy involves extracting raw materials such as fishing, mining, and farming?

A.Primary

B.Secondary

C.Tertiary

D.Quaternary

Explanation: The primary sector extracts natural resources directly from the earth or sea, including agriculture, fishing, forestry, and mining. Secondary processes them into goods, tertiary delivers services, and quaternary handles knowledge-based work.

2A business owned by one person who has unlimited liability is best described as a:

A.Sole trader

B.Partnership

C.Private limited company

D.Public limited company

Explanation: A sole trader is a single owner with unlimited personal liability for business debts. Partnerships have 2+ owners, while private and public limited companies offer the protection of limited liability to shareholders.

3Which of the following is the key feature of a cooperative?

A.Democratic ownership by members who share profits

B.Government ownership

C.Listed shares on a stock exchange

D.Single owner with unlimited liability

Explanation: Cooperatives are owned and democratically controlled by their members (one member, one vote) who share in surpluses. They contrast with shareholder-owned companies where voting is proportional to shareholding.

4An NGO (non-governmental organisation) is best classified as:

A.A not-for-profit, third-sector organisation

B.A government-owned enterprise

C.A multinational corporation

D.A profit-distributing cooperative

Explanation: NGOs operate in the third (voluntary) sector, are independent of government, and reinvest any surplus into their social or environmental mission rather than distributing profits to owners.

5An employee who develops a new product line and runs it as a venture inside an existing company is best described as:

A.An intrapreneur

B.A sole trader

C.A social entrepreneur

D.A franchisee

Explanation: Intrapreneurs apply entrepreneurial behaviour (risk-taking, innovation, initiative) within a larger organisation, using its resources. Entrepreneurs start their own external venture; social entrepreneurs focus on a social mission.

6The triple bottom line of CSR refers to:

A.People, planet, profit

B.Price, place, promotion

C.Cost, revenue, profit

D.Owners, customers, suppliers

Explanation: John Elkington's triple bottom line frames corporate performance across three pillars — social (people), environmental (planet), and economic (profit) — moving beyond financial reporting alone.

7Which stakeholder group is BEST described as having an interest in stable employment, fair wages, and safe working conditions?

A.Employees

B.Shareholders

C.Suppliers

D.Local community

Explanation: Employees are internal stakeholders whose primary interests are job security, pay and benefits, training, and safe working conditions. Shareholders prioritise returns, suppliers prioritise reliable orders, communities prioritise local impact.

8A stakeholder conflict most likely arises when:

A.Shareholders demand higher dividends while employees seek pay rises

B.All stakeholders benefit equally from growth

C.The business breaks even

D.A firm publishes its annual report

Explanation: Conflicts occur when limited resources must be split between groups with competing interests — paying higher dividends reduces the funds available for wage increases. Identifying and managing these trade-offs is a core management task.

9Which of the following is an example of a quaternary-sector activity?

A.Software development and data analytics

B.Wheat farming

C.Car manufacturing

D.Hairdressing

Explanation: The quaternary sector covers knowledge-based services such as software, R&D, IT, and consultancy. Farming is primary, car manufacturing is secondary, and hairdressing is a tertiary service.

10The chief difference between a private limited company (Ltd) and a public limited company (plc) is:

A.Plc shares can be sold to the general public on a stock exchange

B.Plc owners have unlimited liability

C.Ltd companies cannot make a profit

D.Ltd companies must publish accounts but plcs need not

Explanation: A plc may list shares on a stock exchange and sell them to the public; an Ltd can only sell shares privately, typically to family, friends, or invited investors. Both enjoy limited liability and must file accounts.

About the IB Business Management SL Exam

IB Diploma Business Management Standard Level (SL) is a two-year course in the Individuals and Societies group of the IB Diploma Programme. The new syllabus (first exams 2024) is organised into five units covering introduction, HRM, finance, marketing, and operations, assessed by Paper 1 (pre-released case study), Paper 2 (common case study), and an Internal Assessment research project.

Exam sponsor: International Baccalaureate Organization (IBO). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

100 questions

Time Limit

Paper 1: 1h 15min; Paper 2: 1h 45min; plus Internal Assessment Research Project

Passing Score

Grade 4 typically considered a pass; final grade 1-7 with 24+ points needed for the Diploma

Exam / Certification Fees

Approx. $134 USD per subject registration fee (set by IBO; schools may add admin costs)

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

15%

Unit 1 Introduction to Business Management

Nature of business activity, sectors of the economy, entrepreneurship, business types (sole trader, partnership, Ltd, plc, cooperatives, NGOs), stakeholders, business ethics and CSR

15%

Unit 2 Human Resource Management

HR planning, recruitment and selection, training (induction, on-the-job, off-the-job), motivation theories, leadership styles, organisational structure, communication and conflict

20%

Unit 3 Finance and Accounts

Sources of finance, cash flow forecasts, final accounts, profitability and liquidity ratios, investment appraisal, break-even analysis, budgets and variance

25%

Unit 4 Marketing

Market research, sampling, segmentation, positioning, USP and brand, the marketing mix (7Ps), international marketing, ethics in marketing

15%

Unit 5 Operations Management

Production methods, lean production, TQM, supply chain, sustainability and circular economy, capacity utilisation, project management (CPA), crisis management

10%

Quantitative Tools and Strategic Analysis

SWOT, STEEPLE/PEST, Porter's Five Forces, Ansoff Matrix, Force Field Analysis, decision trees with expected value

Preparing for the IB Business Management SL Exam

What You Need to Know

Passing score: Grade 4 typically considered a pass; final grade 1-7 with 24+ points needed for the Diploma
Exam length: 100 questions
Time limit: Paper 1: 1h 15min; Paper 2: 1h 45min; plus Internal Assessment Research Project
Exam / certification fees: Approx. $134 USD per subject registration fee (set by IBO; schools may add admin costs) Official sources

Using Our Practice Resources

Work through all 100 available questions
Review every answer and explanation
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IB Business Management SL: Suggested Study Strategy

1Engage with the pre-released Paper 1 case study early — annotate stakeholders, business type, and the marketing/finance/operations issues

2Practise applying quantitative tools (break-even, ratios, investment appraisal, decision trees) until the formulas and interpretations are automatic

3Build a glossary of IB command terms (define, describe, explain, analyse, evaluate, recommend) and the response depth each expects

4Use real-world examples to evidence theory — IB examiners reward AO3/AO4 application and evaluation, not just memorised definitions

Frequently Asked Questions

What is the structure of IB Business Management SL?

SL has two written papers and one Internal Assessment. Paper 1 (1h 15min, 35%) uses a pre-released case study, Paper 2 (1h 45min, 40%) uses a common unseen case study, and the IA Research Project is 25% of the final mark.

When did the new IB Business Management syllabus take effect?

The current syllabus is the May 2024 specification. First teaching was September 2022 and first exams were in May 2024. It restructured the course into five units and refreshed the marketing and operations content.

How is IB Business Management SL graded?

Students receive a final grade from 1 to 7, with 7 being the highest. A grade of 4 is generally considered a pass; achieving the full Diploma requires at least 24 points across six subjects plus Core requirements.

What is the difference between SL and HL Business Management?

Standard Level is 150 teaching hours and Higher Level is 240. HL adds extension topics (e.g. circular business models, MNCs, scientific decision-making) and includes an extra Paper 3 social-enterprise case study.

Free Practice Questions for IB Business Management SL

IB Business Management SL