IB BUSINESS AND MANAGEMENT COMMAND TERMS

Term Definition
Level 1: Classify Arrange or order business ideas or data by class or categories.
Knowledge Classify the products sold by a business based on the Boston Matrix.
[1-2 marks]
Comment Description or observation of business data or information relating to a business
decision or issue.
Comment on the change in Burton Inc©’s change in liquidity.
Complete Add information or data.
Complete the ESTs and LFTs in the critical path diagram
Construct Present business data or information in the form of a diagram or table.
Construct a decision tree for Burton Inc©’s various options.
Define A clear, precise statement of the meaning of a business term, word or concept.
Define the term liquidity.
Describe To outline the characteristics of an object or idea.
Describe the corporate culture at Burton Inc©.
Identify Recognise a feature of a business idea, observation or issue.
Identify a reason for the rise in Burton Inc©’s costs.
Outline Give a brief summary of the points raised on an issue or idea.
Outline the characteristics of a democratic leadership style.

Level 2: Calculate Give a precise numerical value.

Understanding Calculate Burton Inc©’s payback period on their new corporate jet.
[3-4 marks]
Comment Give an explanation of a business issue or information.
Comment on the rise of Burton Inc©’s liquidity.
Compare Examine two or more business objects or ideas in order to consider similarities
and differences between them.
Compare Herzberg’s and Taylor’s approaches to motivating workers.
Contrast Consider the differences between two or more business ideas or concepts.
Contrast the TQM and traditional approaches to quality control.
Distinguish Show the differences between ideas or concepts.
Distinguish between democratic and autocratic leadership styles
Explain Describe, giving reasons, a business idea, observation or issue.
Explain why Burton Inc©’s profits have increased.
Prepare Write out data in a chart, table or diagram.
Prepare a table of Burton Inc©’s sales revenue over the last five years.
Level 3: Analyse To separate business material or information into constituent parts and
Application determine its essential features.
[5-7 marks] Analyse the factors that have led to an improvement in Burton Inc©’s liquidity.
Apply Use a theory, principle or concept in relation to a business problem or issue.
Apply Porter’s Five Forces to analyse the market Burton Inc© operates in.
Examine Consider a business decision or proposal which sets out its assumptions and
interrelationships.
Examine Burton Inc©’s decision to outsource production to the Philippines.
Formulate Present a business strategy or decision in a clearly set-out form.
Formulate a marketing strategy for Burton Inc©.
Interpret Draw out and explain information from business issues or observations.
Interpret the change in Burton Inc©’s profit margin.

Level 4: Opinion Advise A recommendation to take a particular course of action.

[8-10 marks] Based on monetary and non-monetary factors, advise the CEO of Burton Inc©’s
whether he should choose to purchase a new server system or employ a company
to manage operations via cloud computing.
Discuss By looking at all aspects of a particular business decision or proposal, consider a
balanced view of the decision or proposal.
Discuss Burton Inc©’s decision to expand into an overseas market.
Evaluate Consider the advantages and disadvantages of a business decision or proposal.
Evaluate the use of JIT stock management by Burton Inc©.
Justify Provide evidence to support or defend a business decision, strategy or course of
action.
Justify Burton Inc©’s decision to launch a new product.
Recomme Suggest a course of action for a business decision based on evidence and/or
nd argument.
Recommend a promotional strategy to Burton Inc©.
To what Make a judgment on the success or failure of a particular course of action based
extent on evidence and argument.
To what extent is Burton Inc©’s decision to adopt profit-related pay a successful
way to improve staff motivation?

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