Educerie · IB Diploma · Business Management
Unit 1 — Topic test · mark scheme
One mark per distinct point unless a band is specified. Application to Bakırlı Bahçe is required throughout: a theoretically correct answer that never refers to the stimulus is capped at half the available marks for that part.
1Sole trader and liability — 4 marks
(a) [2]
| A business owned and controlled by one person | 1 |
|---|---|
| Who has unlimited liability / is not a separate legal entity from the business | 1 |
"A small business" scores 0. Accept "self-employed individual trading in their own name".
(b) [2]
| States that unlimited liability means Elif is personally liable for the business's debts, with no legal separation between her assets and the business's | 1 |
|---|---|
| Applies this to her situation: if the expansion fails or the bank loan cannot be repaid, her personal assets — including the smallholding and her home — could be claimed by creditors | 1 |
The second mark requires application to Elif and to the expansion decision. A generic statement about sole traders losing their houses scores 1.
2Aims, objectives and SMART — 6 marks
(a) [2]
| An aim is a broad, long-term, general goal | 1 |
|---|---|
| An objective is specific, measurable and time-bound — a concrete target serving the aim | 1 |
Must be a comparison. Award 1 for two disconnected definitions.
(b) [4]
| Identifies that the aim is not Specific — "grow the business" does not say grow what: revenue, area, output or customers | 1 |
|---|---|
| Identifies that it is not Measurable and not Time-bound — no figure and no deadline | 1 |
| Notes at least one criterion it does satisfy, e.g. it is Relevant to the business and plausibly Achievable given 40 % growth over two years | 1 |
| Rewrites it as a genuine SMART objective, e.g. "increase annual revenue by 30 % by December 2027 while retaining full organic certification" | 1 |
The third mark is for balance — comment on requires a judgement, not only fault-finding. The rewrite must contain a figure and a date to earn the fourth mark. "Grow revenue significantly soon" scores 0 for that mark.
3Stakeholder analysis — 6 marks (banded)
Award up to 3 marks per stakeholder group, to a maximum of 6. Credit any two valid groups: seasonal workers, the neighbouring grower, the three restaurants, customers, the bank, Elif herself, the local community.
| Band (per group) | Descriptor | Marks |
|---|---|---|
| 3 | Impact identified, applied to the stimulus with specific detail, and developed as a chain of cause and effect | 3 |
| 2 | Impact identified and applied, but the reasoning is asserted rather than developed | 2 |
| 1 | Relevant stakeholder named with a generic impact, no application | 1 |
| 0 | Nothing creditable | 0 |
Indicative content — seasonal workers: doubling growing area increases demand for labour, so more or longer-term work, but a partnership may change who manages them; restaurants: currently supply-constrained, so expansion secures their orders, though a larger Elif may prioritise volume buyers; the neighbouring grower: gains scale and shared costs but loses sole control, and a partnership carries unlimited liability for both partners; the bank: gains a lending opportunity but takes on the risk of an agricultural borrower with seasonal cash flow.
A list of stakeholders with no development cannot exceed 2 marks in total. Analyse requires cause and effect.
4Recommendation — 4 marks (banded)
| Band | Descriptor | Marks |
|---|---|---|
| 4 | Both options considered with application to the stimulus, a clear choice made, and the choice justified against the rejected alternative — ideally with a condition or a next step | 4 |
| 3 | Both options considered and a choice made, but the justification does not engage with why the other option is weaker | 3 |
| 2 | Balanced discussion with no decision, or a decision with little support | 2 |
| 1 | One option described, largely generic | 1 |
| 0 | Nothing creditable | 0 |
Indicative content — partnership: fast, shares costs and expertise, no borrowing; but unlimited liability extends to the partner's actions, control is shared, and disputes are common. Private company with a loan: limited liability protects Elif's personal assets, control retained; but interest must be serviced from seasonal cash flow, and incorporation brings administrative cost. A strong answer notes that limited liability directly addresses the risk identified in question 1(b).
A balanced answer that does not choose is capped at band 2, however well argued.
Mark distribution
| Split | Allocation |
|---|---|
| By sub-topic | Types of organisation 4 · Aims and objectives 6 · Stakeholders 6 · Growth and evolution 4 |
| By objective | AO1 knowledge 4 · AO2 application and analysis 8 · AO3 synthesis and evaluation 8 |
| By command term | Analyse 6 · Comment on 4 · Recommend 4 · Distinguish 2 · Explain 2 · Define 2 |
Total: 20 marks
Educerie · original mark scheme for original questions, written against the published IB syllabus structure for Business Management Unit 1, first assessment 2024. Last reviewed 5 September 2026.