Command Terms

It is absolutely crucial that students understand the different command terms referred to in the IB Business Management syllabus, as each command word in an exam question indicates the level of skills that is being assessed. Learning and understanding these command terms will help you to easily comprehend the demands of the questions in the exams and improve the quality of your written answers and time management. There are 31 command terms used in DP Business Management.

Command terms are clearly stated in the syllabus content and in examination questions in order to show you the depth of the answer required. The command terms are classified according to four Assessment Objectives (AO):

• AO1 - Demonstration of knowledge and understanding

• AO2 - Demonstration of application and analysis

• AO3 - Demonstration of synthesis and evaluation

• AO4 - Demonstration of a variety of appropriate skills, specific to the subject.

The skills levels (or demands of the question) progress from AO1 to AO3, while AO4 command terms are specific to particular skills of IB Business Management (such as constructing break-even charts). The IB states that teachers and students must be familiar with the assessment objective (AO) levels and the command terms (see below) in order to understand the depth of treatment required in teaching and in examination questions for Paper 1 and Paper 2 (SL and HL) and Paper 3 (HL only).

The assessment objective levels are specified alongside the syllabus content in the IB Business Management guide, instead of particular command terms such as 'define' or 'explain'. This gives teachers the flexibility to work with the most relevant command terms at the given assessment objective level, such as defining break-even (AO1) and calculating target profit (AO4).

There are 31 command terms used in IB Business Management. These command terms and their meanings are listed in alphabetical order in the following tables for each of the 4 assessment criteria. Students must be provided with opportunities to familiarise themselves with all thirty of the following key terms and phrases used in syllabus content and in examination questions.

Please note there were 30 key terms in the previous syllabus. "List" (AO1) has been added to the new syllabus.

Assessment objective 1 (AO1)

AO1 refers to the skills of demonstrating knowledge and understanding. AO1 command terms require students to learn and comprehend the meaning of information in the IB Business Management syllabus. There are 6 command terms for AO1:

Define

To define something means to give a precise meaning of a word, phrase, concept or physical quantity. This is my favourite command term to use with students, as it forms the foundation for all other command terms. 

Describe

Describe means to give a detailed account of something, such as describing a method of primary market research, a feature of batch production, or a characteristic of a limited liability company.

Identify

This command term requires you to provide an answer from a number of possibilities, often presented in the stimulus material in the examination or contents of the syllabus. For example, you could be asked to identify two reasons for staff demotivation in a given organization based on the information presented in a case study.

List

This refers you to give a sequence of brief answers without the need for any explanations, such as listing two characteristics of an autocratic leadership style or listing two features of a social enterprise.

Outline

To outline something means to give a brief account or summary of it, such as outlining two characteristics of external sources of finance or two advantages of through the line (TTL) promotion.

State

To state means to give a specific answer, such as a name, value or other brief answer without the need for an explanation or calculation. Examples include stating a reason for setting up business or enterprise, stating the value of the closing balance in a cash flow forecast, or two internal stakeholders of a particular organization.

Assessment objective 2 (AO2)

Analyse

Analysis requires you to break things down in order to bring out the essential elements or structure, such as analysing the impacts of the opportunities and threats on an organization's growth strategy.

Apply

Application refers to the use an idea, equation, principle, theory, or law in relation to a given problem or issue. Essentially, it is about using the appropriate Business Management tools, theories, and techniques related to the context of the issue or problem, such as applying relevant motivation theory to the organization in the exam question.

Comment

This skill requires you to give a judgment or opinion based on a given statement or result of a calculation, such as commenting on the results of an investment appraisal or cash flow forecast.

Demonstrate

This command terms means you need to make something clear by showing reasoning and/or evidence, illustrating this with examples or practical application. An example is an examination question that requires you to demonstrate the reasons for outsourcing (subcontracting) a firm's operations or offshoring its production.

Distinguish

To distinguish means to make clear the differences between two or more terms, concepts, or items. Examples include distinguishing between leadership and management, financial and non-financial rewards, or crisis management and contingency planning (HL only).

Explain

To explain something means to give a detailed account of it, including reasons or causes where appropriate. For example, students could be asked to explain the choice of pricing method for a given business or its choice of production method (operation method).

Suggest

This command term requires you to propose a solution, hypothesis or other possible answer to a question, proposal, or issue. An example is an examination question that requires students to suggest a suitable method of appraisal for employees or to suggest the most suitable sources of finance for a particular organization.

Assessment objective 3 (AO3)

Compare

To compare means to give an account of the similarities between two (or more) things. It requires you to refer to both (all) of these issues / situations / items throughout the answer, such as comparing the leadership or management styles of different people.

Compare and contrast

Similar to the above, but this skill requires you to give an account of similarities and differences between two (or more) things, referring to both (or all) of them throughout the answer, such as comparing and contrasting the marketing mix of commercial (for profit) and not-for-profit organizations.

Contrast

This is the opposite meaning of "Compare" but requires the same transferable skills. Contrast means to give an account of the differences between two (or more) things. It requires you to refer to both (all) of these issues / situations / items throughout the answer, such as contrasting the organizational objectives of for-profit organizations and non-profit social enterprises, or the marketing mix of these different types of organizations.

Discuss

To have a discussion about something means to offer a considered and balanced review, which includes a range of arguments, factors or hypotheses. This higher order thinking skill requires students to present their opinions or conclusions in a clear way, that is supported by appropriate evidence presented in the discussion. An example is an examination question that requires students to discuss the various ways that an organization can differentiate itself and its products from rivals in the industry.

Evaluate

One of the most challenging command terms, evaluation requires students to make an appraisal by weighing up the strengths and limitations of something. An example is an exam question that requires student to evaluate the investment opportunities for a firm based on an investment appraisal or a make or buy decision (based on the cost to make versus the cost to buy) (HL only).

Examine

Examine means to consider an argument, issue, or concept in a way that uncovers the assumptions and interrelationships of the issue. Hence, this assessment objective requires in-depth thought, such as examining the importance of branding for a particular organization or examining the importance of developing goods and services that address customers’ unmet needs (HL only).

Justify

Justification is a skill that requires students to give valid reasons or evidence in order to support an answer or conclusion. This requires the answers to be fully justified and substantiated.

Recommend

To recommend something requires students to present an advisable course of action with appropriate supporting evidence / justified reasoning in relation to a given situation, problem, or issue.

To what extent

This final AO3 command term requires you to consider the merits or otherwise of an argument, proposal, point of view, or concept. Opinions and conclusions should be presented clearly and supported with appropriate evidence and sound / substantiated arguments.

This is one of the most challenging command terms for students, perhaps due to the lack of understanding of the demands of the term. Essentially, to answer any "to what extent" question, there needs to be a balanced response presented with considerable evidence for the students to judge the extent to which something can be justified. An example might be to judge the extent to which a firm's promotional strategies have been successful in raising its brand loyalty or market share.

As a top tip, tell students there are only three possible outcomes to such a question:

1. To a large extent, i.e., the evidence suggests the promotional strategies of the organization have been largely successful in raising its market share and/or brand loyalty.

2. To some extent, i.e., there are other factors besides the firm's promotional strategies that will have contributed to a rise in its market share and/or brand loyalty.

3. To a small extent, i.e., promotional strategies were not the main reason for why the firm's market share / brand loyalty has increased, and this argument has been backed by evidence presented in the answer.

Many students use "To what extent" as the command term in their research question for the Internal Assessment (HL and SL) and the Extended Essay. Make sure their conclusion(s) address the command term, i.e., to what extent ...

Assessment objective 4 (AO4)

Annotate

Annotate requires students to add brief notes to a diagram, chart or graph, such as a product life cycle diagram or a break-even chart.

Calculate

This skill requires students to obtain a numerical answer, showing the relevant stages
in the working out, such as calculating financial ratios, cash flow forecasts, contribution, market share, labour turnover rate (HL only), and variances (HL only).Note that students are allowed to use a GDC (graphic display calculator) in the examinations. However, a basic 4-function calculator will suffice for the IB Business Management examination questions.

Complete

To complete means to add missing information / data, perhaps in a table or chart. For example, students could be asked to complete missing information in a balance sheet, profit and loss account, or cash flow forecast.

Construct

To construct means to display information in a diagrammatic or logical form, such as using data in the examination to construct the final accounts (financial accounts) or product position map for an organization.

Determine

Determine is the skill of obtaining the only possible answer in a question, such as determining the level of gross profit, payback period, or margin of safety.

Draw

To draw means to represent by means of a labelled, accurate diagram or graph, using a pencil. A ruler (straight edge) should be used for straight lines in diagrams such as a break-even chart. Diagrams such as break-even should be drawn to scale (where appropriate), with points correctly plotted (where appropriate).

Label

This command term requires students to add texts / labels to a particular diagram, such as labelling the margin of safety in a break-even chart, or the maturity stage in a product life cycle diagram.

Plot

To plot something means to mark the position of particular points on a diagram. For example, students may be asked to plot the position of a given business or product in a product position map, or to plot various points on a scatter diagram (HL only) and stock control chart (HL only).

Prepare

To prepare means to put given data or information from the stimulus / source material into a suitable format, such as preparing a profit and loss account, a balance sheet, a cash flow forecast, a business plan, a decision trees, or a force field analysis (HL only).

Top tip 1 - What's the difference between "Discuss" and "Evaluate"?

Whilst these command terms require similar skills, there are subtle differences that will help you to perform better in the examinations.

To "discuss" something requires a two-sided or multiple perspectives. For example, if the exam question is to "Discuss the decision for Company X to outsource its production to Country Y.", you will need to set out both sides of the argument (for and against), and then come to a conclusion related to the content and emphasis of the discussion. There must be evidence of a balanced, two-sided argument. However, these do not necessarily have to be of equal weighting. "Discuss" questions tend to use qualitative analysis, although quantitative analysis can be used where appropriate (based on the stimulus materials available).

To "evaluate" something requires a judgement about the significance of something. For example, if the exam question is "Evaluate the decision of Company A to form a joint venture with Company B.", you will need to consider the options, ideas, or arguments presented in the extended-response answer and come to a conclusion about their relative importance/success/value to the organization and its key stakeholders. Evidence from the stimulus material must be used to substantiate your judgement. "Evaluate" questions tend to use quantitative analysis, although qualitative analysis should be used as appropriate.

 Top tip 2! - Develop your critical thinking skills for AO3

AO3 skills such as "evaluation" or "discuss" emphasise far more than remembering what has been taught or learnt in the classroom such as imparting information and content. Reflective and critical thinking require students to know how to access accurate and reliable information as well as how to analyse this in a meaningful way.

Critical thinking in business management is about developing a set of transferable skills, including deeper thinking, reasoning and problem-solving, that students can use across the content of the syllabus in dealing with complex real-world issues that feature in all aspects on IB assessment - including Paper 1, Paper 2, Paper 3 (HL only), the Internal Assessment and the Extended Essay.

Consider these four "ABCD" strategies to develop reflective and critical thinking that all students can use:

1. Ask - Encourage students to ask questions to clarify and deepen their understanding. Curiosity and inquiry are vital to developing knowledge and should be nurtured by teachers. If a student cannot comprehend a particular argument, s/he should be encouraged to question it.

2. Biasses - Encourage students to consider biases and assumptions with any information they are presented with. Quite often, what we do not know (due to missing information or disinformation) can be just as important as what we (think we) know. Emotions, biases and personal ambitions can all influence people's judgments and decision-making. In the context of business management, biases can influence all business functions and aspects of decision-making, such as recruitment, leadership and management, motivation, budgeting (HL only), sales forecasting (HL only), market research, and decisions about outsourcing production.

3. Concepts - Encourage students to use conceptual thinking. Critical thinking is not confined to a particular academic subject. Instead, the use of concepts, that are timeless and span different disciplines, can help to take learning further and promote critical thinking. In business management, any business issue or problem can be discussed through the key concepts of change, ethics, sustainability, and creativity.

4. Discussion - Create opportunities for students to discuss alternative explanations and perspectives. A discussion requires students to offer a considered and balanced review of a topic, issue or problem, which includes a range of arguments (perspectives), factors, and/or hypotheses that can be tested or refuted. Discussions help students to formulate their own opinions and conclusions, which should be presented clearly and supported by appropriate reasoning and evidence. It is important to remember that real-world issues, events and changes will affect different individuals and societies in different ways. Rarely is there a case when a single "right" answer exists - and in the real corporate world, things are far more complex than simple business management tools, theories and techniques such as motivation theory or break-even analysis.

Finally, remember that reflective thinking or critical thinking is a skill that lasts a lifetime, not just during your IB studies.