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​IB BUSINESS MANAGEMENT: 
​UNIT 3 – FINANCE AND ACCOUNTS
Finance and Accounts in IB Business Management is one of the five core topics and is assessed in both Paper 1 and Paper 2 SL and HL examinations. Finance is the management of money, credit, banking and investments. Accounting is the preparation of business accounts such as the profit and loss account and an organisation's balance sheet.

Finance and Accounts

​Keeping a close eye on and having effective systems to monitor inflows of revenue and outflows of expenditure is vital for any successful business. Having established sources of finances for initial business funding, cash short-falls and expansion plans is important. The accounts and finance section also provides the business with an array of tools for keeping track of cash flows, judging the viability of an investment and being able to prepare and analyse a financial records to both report on and evaluate the health of a business.

Enron: an introduction to accounts and finance

​Before Lehman Brothers sank link a stone and heralded the start of the Great Financial Crisis, ENRON was the prime example of financial and accounting mismanagement, leading to what was then the largest corporate bankruptcy in the history of corporations.

The documentary is a fascinating introduction to the world of accounts and finance, enjoy!

Finance and accounts

The IB Business Management course Finance and Accounts topic aims to give the student a good overview of:
  • The need for finance in business and how finances can be sourced both internally and externally, from a variety of different short, medium, and long-term sources
  • The different ways investments can be analysed and judged, including: pay back periods, accounting rates of return, discounted cash flows and net present value, besides other qualitative considerations
  • The importance of working capital and the difference between cash and profit, examining cash flow forecasts and cash flow problems, as well as ways to to deal with liquidity problems
  • Why it is important for businesses to set and monitor budgets, and examine budget variances
  • Final accounts, including trading and profit and loss accounts, balance sheets, methods of calculating depreciation of assets and the different ways of valuing stock
  • The different types of ratios that are available to give an indication of a organisation's financial health, including: profitability, liquidity, efficiency and gearing ratios

IB Business Management 1.1 WHAT IS A BUSINESS?
SUMMARY NOTES

IB Business Management: 1.1 What is a business? teaching and learning PowerPoint notes for HL and SL IB Business Management

PROGRESS CHECK  – Test your understanding by completing the activities below

You have a range of practice activities, interactive flash cards, exam practice questions, interactive quizzes and classroom games to ensure you and your students have complete mastery of the IB Business Management requirements for the 1.1 Introduction to business topic.

USE THE FLASHCARDS IN ALL STUDY MODES

IB Business Management
1.1 What is a business?
Student learning activity A
IB Business Management
1.1 What is a business?
Student learning activity B
IB Business Management
1.1 What is a business?
Student learning activity C
IB Business Management
1.1 What is a business?
Exam practice questions
IB Business Management interactive quizzes and classroom games
Test how well you know the IB Business Management Introduction to Business Management: What is a business? topic with the interactive self-assessment quizzes below. Each interactive quiz selects 30 questions at random from a larger question bank so keep on practicing! Aim for a score of at least 80 per cent.
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