IB Business Management (Entire Syllabus) Exam Test Guide with Complete Solutions

Capital intensive - ANSWER-Production processes that use a high ratio of capital to labor inputs Labor intensive - ANSWER-Production processes involving a high level on labor input compared with capital equipment Ecological sustainability - ANSWER-Occurs when the capacity of the natural environment meets the needs of the present population without endangering the ability of future generations to meet their needs. Economic sustainability - ANSWER-Occurs when business development meets the needs of the present population without endangering the ability of future generations to meet their needs. Social sustainability - ANSWER-Occurs when social interactions and structures necessary for social development meets the needs of the present population without endangering the ability of future generations to meet their needs. Operations management - ANSWER-A specialized area in management that converts or transforms resources (including human resources) into goods and services. Production process - ANSWER-The method of turning inputs into outputs by adding value in a cost-effective way. Sustainability - ANSWER-Being able to meet the needs of the present without compromising the ability of future generations to meet their own needs. Promotes inter-generational equity. Value added - ANSWER-Is the difference between a product's price and the total cost of the inputs that went into making it. It is the extra worth created in the production process. Lean Production - ANSWER-process of streamlining operations and processes to reduce waste (e.g. materials/resources, time, energy, human effort) that leads to improved quality and reduced costs Follows the principles: - waste minimization = remove processes that don't add value - 'right first time' = zero defects