Educerie · IB Diploma · Business Management

Unit 1 — Topic test

Paper 2 style · 20 marks · 30 minutes

Answer all questions with reference to the stimulus.

Stimulus — Bakırlı Bahçe. Bakırlı Bahçe is a sole trader business run by Elif Bakırlı, growing and selling organic vegetables from a smallholding near Bursa. It employs six seasonal workers. Elif sells at farmers' markets and to three local restaurants. Revenue has grown 40 % over two years and demand now exceeds what the smallholding can produce. Elif is considering two options: forming a partnership with a neighbouring grower to double growing area, or converting to a privately held company and taking a bank loan to lease additional land. She states that her aim is "to grow the business while keeping it genuinely organic".

1. (a) Define the term sole trader. [2]

(b) Explain one disadvantage of unlimited liability for Elif. [2]

2. (a) Distinguish between an aim and an objective. [2]

(b) Comment on whether Elif's stated aim meets the SMART criteria, and suggest how it could be rewritten as an objective. [4]

3. Analyse the impact of Elif's proposed expansion on two stakeholder groups. [6]

4. Recommend which of the two options Elif should choose. [4]

Total: 20 marks

Command terms in this test. Question 3 says analyse, so cause and effect for this business is required, not description. Question 4 says recommend, which means choosing one option and justifying it against the other — a balanced answer with no decision cannot reach the top band. Question 1(b) says explain, so the reason must be applied to Elif specifically.

Educerie · original questions written against the published IB syllabus structure for Business Management Unit 1, first assessment 2024. Bakırlı Bahçe is a fictional business created for this material. Last reviewed 5 September 2026.