Practice 4.1 Introduction to marketing with authentic IB Business Management exam questions for both SL and HL students. This question bank mirrors Paper 1, 2, 3 structure, covering key topics like systems and structures, human behavior and interaction, and sustainability and ethics. Get instant solutions, detailed explanations, and build exam confidence with questions in the style of IB examiners.
Paper
Level
Question 1
HLPaper 3
LuminaCare
Resource 1 – Company profile and financial context
LuminaCare is a Ghana-based, for-profit social enterprise that manufactures solar-powered medical devices for rural clinics and maternal health centers across Sub-Saharan Africa. Its flagship product is a solar fetal heart monitor, which allows midwives to detect complications during pregnancy without relying on grid electricity. The company raised seed capital from impact investors but has now reached an inflection point: demand has grown by 300%, and LuminaCare must decide whether to pursue a $2.5M Series A equity round or take on $1.2M in concessional debt from a development bank.
Resource 2 – CFO’s internal memo (Finance)
“Our burn rate is steady, but we’ve reached our credit limit with suppliers. We operate on 90-day payment terms with clinics, so cash flow is always tight. Series A equity gives us the scale to meet demand and build a second facility—but would dilute founder control and introduce board-level oversight. The concessional loan is low-interest and non-dilutive but comes with covenants: quarterly EBITDA targets, strict capex limits, and donor-style reporting. Any miss could trigger loan restructuring or early repayment.”
Resource 3 – HR performance dashboard (Q1–Q2 2025)
| Metric | Value |
|---|---|
| Staff turnover (last 6 months) | 22% |
| Time to fill technical roles | 49 days (↑ 24%) |
| % of roles with formal job descriptions | 58% |
| Managerial span of control | Avg. 12 direct reports |
| Avg. team engagement score | 67/100 (↓ from 78) |
| The head of HR notes that burnout and unclear career paths are leading to attrition, especially among product engineers and field deployment staff. |
Resource 4 – Marketing team proposal
“Clinics love our mission—but most have no idea who we are until we show up at trade shows. We need to invest in inbound marketing, including a multilingual website, CRM tools, and a referral rewards program for midwives. More crucially, we’re perceived as a donor-funded nonprofit, not a serious tech company. To attract hospital procurement officers and larger buyers, we must reposition the brand to emphasize product quality, not just affordability and ethics.”
Resource 5 – Email thread: CEO to CFO and Marketing Lead
Resource 6 – Feedback from key field partners
“We rely on LuminaCare’s devices, but their response time for repairs has worsened.” “Sometimes we get different pricing from different reps. There’s no standard process.” “I love the mission—but our procurement officer wants a brand that feels serious. A logo change isn’t enough.”
1.[2]
With reference to Resource 3, describe one HR issue that may be impacting LuminaCare’s ability to scale sustainably.
2.[6]
Explain one financial challenge and one marketing challenge LuminaCare may face if it accepts the concessional loan.
3.[17]
Using all the resources provided and your knowledge of business management tools and theories, recommend a possible plan of action for LuminaCare over the next five years.
Question 2
SLPaper 2
PureGlow Ltd.
PureGlow Ltd. is a skincare company that sells natural, plant-based beauty products. To support the launch of a new product line, the business used a mix of internal and external sources of finance. It relied on retained profit from previous years and also secured funding from a venture capital firm interested in ethical consumer brands.
The new product range was supported by a marketing plan focused on the premium segment. As part of the plan, PureGlow adjusted elements of its marketing mix, including packaging design and pricing. The company aims to increase market share and improve profit margins in a highly competitive industry.
Table 1 shows selected financial data for the first month after the launch.
Table 1: Financial data for PureGlow Ltd. (Month 1)
| Item | Amount ($) |
|---|---|
| Revenue | 140,000 |
| Cost of goods sold | 60,000 |
| Expenses | 50,000 |
| Net profit | ? |
1.[2]
State two sources of finance used by PureGlow Ltd.
2.[2]
Calculate the net profit for the month. Show all your working.
3.[2]
Explain one reason why profit is important for a business like PureGlow Ltd.
4.[2]
Identify one element of the marketing mix that was changed and explain its potential impact.
5.[2]
Outline one reason why creating a marketing plan is useful when launching a new product.
Question 3
HLPaper 3
SolvoHealth
Resource 1 – Business model and service offering
SolvoHealth is a rapidly growing mobile health company based in Vietnam. It operates a network of telehealth pods—solar-powered kiosks placed in rural communities that allow patients to consult doctors remotely, order basic diagnostics, and schedule medicine delivery.
Each pod includes a screen, smart diagnostic tools, and a local “health navigator” who guides users. SolvoHealth employs:
40 health navigators (frontline staff)
15 remote doctors (contracted)
30 staff at its operations HQ in Ho Chi Minh City (marketing, product, supply chain, HR)
SolvoHealth positions itself as affordable, hyper-local, and technology-enabled. The leadership team now plans to launch 60 pods in Indonesia and Bangladesh over the next 18 months.
Resource 2 – Internal HR report
“Navigator turnover remains high at 28% annually. Interviews cite poor training, emotional fatigue, and a disconnect between field roles and central ops decisions. Navigators receive basic onboarding but no career pathway or local adaptation in training. They also report being treated more as hardware support than as care professionals.
Headquarters recently introduced a CRM-linked performance bonus system based on call completion and upsell conversions—but this has increased pressure on already fatigued staff.”
Resource 3 – Weekly Ops Brief (March 2025)
Visual suggestion: This operations table can be converted into a bar chart or dashboard screenshot to test interpretation skills.
| Metric | Vietnam (live) | Indonesia (pilot) |
|---|---|---|
| Avg. pod uptime | 94% | 71% |
| Avg. medicine delivery time | 26 hours | 61 hours |
| Navigator-reported escalations | 9.2/week | 18.4/week |
| Inventory out-of-stock events | 3.1/week | 7.5/week |
Resource 4 – Brand perception audit (external)
In Vietnam, SolvoHealth scores high for accessibility and usefulness, but low for empathy and personalisation. Many patients feel “talked to” by doctors, not “heard.”
In Indonesia (pilot), users were confused by medical terms and unable to complete video sessions. 47% believed the navigator was “just a receptionist.”
A competitor, SehatNow, offers similar services but invests heavily in navigator-patient relationship-building and community health workshops to build trust.
Resource 5 - Email from Head of Marketing to CEO
Resource 6 – Slack thread
@Linh (HR): “One navigator resigned mid-shift—said she felt like a vending machine operator.”
@Dara (Marketing): “How are we still pushing bonuses on upsells when trust is crumbling?”
@Tung (Ops): “I’ll review the KPIs. But we can’t rebuild loyalty with posters.”
@Dara: “Maybe not. But we can’t scale a service that feels robotic either.”
*Note Slack is an internal team communications tool
1.[2]
With reference to Resource 2, describe one HR issue that may impact SolvoHealth’s service performance.
2.[6]
Explain one marketing challenge and one operations challenge SolvoHealth may face as it expands across Indonesia and Bangladesh.
3.[17]
Using all the resources provided and your knowledge of business management tools and theories, recommend a possible plan of action for SolvoHealth over the next five years.
Question 4
SLPaper 2
Solveta Ltd.
Solveta Ltd. is a private limited company that manufactures eco-friendly packaging materials for global e-commerce businesses. The company recently launched a major marketing campaign to enter three new export markets. This campaign involved substantial investment in promotion, pricing adjustments, and changes to distribution (place) to align with regional consumer expectations.
To fund this expansion, Solveta used a mix of retained profit, a medium-term loan, and newly issued share capital. While sales revenue has increased, rising logistics and distribution costs have impacted short-term liquidity. The finance department has released Solveta’s statement of financial position and asked the marketing and finance teams to assess its implications for profitability and cash flow.
Figure 1. Solveta Ltd. Statement of financial position as at 30 June 2024
| Item | $ |
|---|---|
| Assets | |
| Non-current assets | |
| Property, plant and equipment | 600,000 |
| Less: Accumulated depreciation | (150,000) |
| Net non-current assets | 450,000 |
| Current assets | |
| Cash | 60,000 |
| Debtors | 85,000 |
| Stock | 105,000 |
| Total current assets | 250,000 |
| Total assets | 700,000 |
| Liabilities | |
| Current liabilities | |
| Bank overdraft | 12,000 |
| Trade creditors | 48,000 |
| Short-term loan | 40,000 |
| Total current liabilities | 100,000 |
| Non-current liabilities | |
| Borrowings—medium term | 180,000 |
| Total liabilities | 280,000 |
| Net assets | 420,000 |
| Equity | |
| Share capital | 300,000 |
| Retained earnings | 120,000 |
| Total equity | 420,000 |
1.[2]
Explain one reason Solveta Ltd. may have chosen to use more than one source of finance for its international marketing campaign.
2.[2]
Suggest one element of the marketing mix Solveta adjusted to support its international expansion
3.[2]
Calculate the current ratio and acid test ratio for Solveta Ltd. Show all your working.
4.[2]
Outline what these liquidity ratios suggest about Solveta’s short-term financial position.
5.[2]
Comment on how Solveta’s cost and revenue structure may affect its profitability.
Question 5
HLPaper 3
Global Solar Solutions (GSS)
Resource 1 – Background of the social enterprise
Three years ago, electrical engineer and entrepreneur Nadira Khan founded Global Solar Solutions (GSS) as a social enterprise in Morocco. Her goal was to provide affordable, modular solar lighting kits to off-grid rural communities. These kits, manufactured at GSS’s urban facility, include rechargeable LED lights and mobile charging ports. GSS reinvests 100% of profits into R&D and local hiring.
GSS operates in partnership with local NGOs and community councils. Its workforce includes 40 technicians and 20 community trainers who educate households about solar usage and maintenance. GSS applies lean production, Kaizen, and maintains a strong internal emphasis on quality control and after-sales support.
Resource 2 – Recent internal report on workforce issues
"High staff turnover and trainer burnout have increased over the past 12 months. Trainers, who work in remote villages for weeks at a time, report fatigue and a lack of recognition. Some have requested additional health support and clearer promotion opportunities."
The HR department suggested non-financial incentives such as increased job rotation and monthly feedback sessions but reported mixed engagement.
Resource 3 – Email from the Director of Rural Development (DRD)
To: nadira.khan@GSS.org
Subject: Expansion proposal
Dear Ms. Khan,
We are impressed by GSS’s impact. The Ministry would like to propose a contract to expand the solar program to 80,000 homes across North and West Africa over five years. Your team would need to train local technicians and build capacity in three new countries. Please note, the contract requires local sourcing of at least 60% of parts.
We will require an initial trial rollout in 5,000 homes and evidence of social impact.
Regards,
Director, DRD
Resource 4 – Extract from a marketing audit summary
GSS currently relies on word-of-mouth and NGO referrals. Its brand is associated with trust and affordability. However, a 2024 brand perception survey in new markets revealed low awareness and concerns about product durability compared to larger multinationals such as SolarX.
GSS’s marketing team is small (3 staff) and has no formal digital strategy. There is also no localized messaging for francophone West African markets.
Resource 5 – Operations update from the Head of Production
Our current facility is operating at 92% capacity. To meet a major scale-up, we would need to either expand production or outsource subassembly. We have identified two regional partners with experience in sustainable component manufacturing. However, we are concerned about quality assurance if we lose full process control.
Resource 6 – Excerpt from a local newspaper article
“Access to solar power has transformed daily life in remote villages. Children now study at night, families charge phones to access mobile banking, and kerosene usage has dropped. However, NGOs report that replacement parts for some GSS kits have been slow to arrive, creating frustrations in isolated regions.”
1.[2]
With reference to business management motivation theory, describe one need that GSS satisfies for rural households requiring solar lighting.
2.[6]
Explain one human resource challenge and one operations challenge GSS may face if it accepts the DRD expansion contract.
3.[17]
Using all the resources provided and your knowledge of business management tools and theories, recommend a possible plan of action for GSS over the next five years.
Question 6
SLPaper 2
GlowBar
GlowBar is a newly opened skincare business run by two friends. The business offers handmade soaps and facial products using natural ingredients. Before launching, the owners conducted primary market research by interviewing potential customers at local health food stores.
GlowBar’s co-founders use a democratic leadership style, encouraging their small team to participate in decisions. To keep staff motivated, they offer flexible working hours and recognition for good performance.
To finance the launch, the owners used their own savings and borrowed money from a microfinance provider.
Table 1 shows GlowBar’s financial data for its first month.
Table 1: Financial data for GlowBar (Month 1)
| Item | Amount ($) |
|---|---|
| Fixed costs | 4,000 |
| Variable costs | 3,000 |
| Revenue | 12,000 |
1.[2]
State two features of a democratic leadership style.
2.[2]
Identify two non-financial methods of motivation used at GlowBar.
3.[2]
Calculate GlowBar’s profit for the first month.
Show all your working.
4.[2]
Identify two elements of the marketing mix that GlowBar used when launching its products.
5.[2]
State one primary and one external source of finance mentioned in the case.
Question 7
SLPaper 2
CycleSpark Ltd.
CycleSpark Ltd. is a company that designs and sells electric bicycles. The business recently launched a new model and created a marketing plan focused on urban commuters. The plan includes promotional discounts, partnerships with eco-friendly organisations, and a pricing strategy to remain competitive.
To support the launch, CycleSpark obtained a medium-term loan and used retained profit from the previous year. Although sales increased, the company experienced cash flow difficulties due to a delay in customer payments.
Table 1 shows selected financial data from the month following the product launch.
Table 1: Financial data for CycleSpark Ltd. (Month 1)
| Item | Amount ($) |
|---|---|
| Revenue | 180,000 |
| Cost of goods sold | 110,000 |
| Expenses | 50,000 |
| Opening balance | 8,000 |
| Cash inflows | 70,000 |
| Cash outflows | 95,000 |
1.[2]
State two sources of finance used by CycleSpark Ltd.
2.[2]
Calculate the net profit for the month. Show all your working.
3.[2]
Calculate the closing cash balance for the month. Show all your working.
4.[2]
Explain one reason why a business with strong sales might still face cash flow problems.
5.[2]
Identify one element of the marketing plan mentioned in the case and explain its purpose.
Question 8
SLPaper 2
FreshFizz Co.
FreshFizz Co. is a partnership that produces and sells sparkling fruit drinks made from natural ingredients. The partners recently carried out market research by surveying local gym members about their drink preferences. Based on the results, they plan to launch a low-calorie product with new packaging and promote it through social media.
FreshFizz has gathered financial data to help decide whether to invest in a new production machine.
Table 1 shows key financial information from last year.
Table 1: Financial data for FreshFizz Co.
| Item | Amount ($) |
|---|---|
| Gross profit | 60,000 |
| Revenue | 120,000 |
| Current assets | 40,000 |
| Current liabilities | 20,000 |
Table 2 shows estimated returns from the new machine.
Table 2: Estimated returns from machine
| Year | Net cash inflow ($) |
|---|---|
| 1 | 5,000 |
| 2 | 10,000 |
| 3 | 15,000 |
Initial cost of machine: $25,000
1.[2]
Identify two characteristics of a partnership.
2.[2]
Calculate the gross profit margin for FreshFizz Co. Show all your working.
3.[2]
State the payback period for the new machine. Show all your working.
4.[2]
Identify two elements of the marketing mix FreshFizz is changing based on the case.
5.[2]
Explain one reason why market research is important when launching a new product.
Question 9
HLPaper 2
AstraPod Ltd.
AstraPod Ltd. is a growing company that designs and sells interactive educational tablets aimed at a niche market: schools and tutoring centres. The firm recently launched a marketing campaign that combined online influencer-led explainers with national education magazine ads.
After steady early growth, the company now plans to scale into broader B2B contracts with public schools. It is considering adjusting its strategy from design-led innovation to more feedback-driven development.
Below is AstraPod Ltd.’s Statement of Financial Position as of 31 December 2024.
Figure 1. Statement of Financial Position: AstraPod Ltd. (as at 31 December 2024)
(All figures in $m)
| $m | |
|---|---|
| Property, plant and equipment | 1,200 |
| Accumulated depreciation | (200) |
| Net non-current assets | 1,000 |
| Cash | 250 |
| Debtors | 300 |
| Stock | 150 |
| Total current assets | 700 |
| Total assets | 1,700 |
| Trade creditors | 150 |
| Bank overdraft | 50 |
| Short-term loan | 200 |
| Total current liabilities | 400 |
| Long-term borrowings | 300 |
| Total liabilities | 700 |
| Net assets | 1,000 |
| Retained earnings | 1,000 |
| Total equity | 1,000 |
Additional information:
- Annual credit purchases = $1,200 million
- The factory and production machinery was purchased for $1,500 million and is expected to last 15 years.
- AstraPod’s marketing campaign generated widespread social media engagement and national coverage.
- Product development has historically been led by the engineering team with limited market feedback.
1.[2]
Calculate AstraPod Ltd.'s depreciation expense using the straight-line method
2.[2]
Using the information provided, distinguish between a market-oriented and product-oriented approach.
3.[2]
Identify one feature of through the line promotion and explain how AstraPod’s campaign reflects this.
4.[2]
Outline whether AstraPod is currently operating in a niche market or mass market
5.[2]
Explain one limitation of AstraPod Ltd.’s current depreciation method
Question 10
SLPaper 2
JuiceHub
JuiceHub is a small business that sells freshly squeezed juices and smoothies from a mobile truck. The owner started the business with her personal savings and later received additional funds from a local government grant. JuiceHub focuses on offering healthy and convenient drinks to young professionals and fitness enthusiasts. Before launching a new product range, the owner created a simple marketing plan that included identifying the target market and setting promotional objectives. She also analysed the costs and revenue expected from the new products.
Table 1 shows estimated financial data for JuiceHub’s new tropical smoothie.
Table 1: Estimated financial data per unit as of 2025 Q1
| Item | Amount ($) |
|---|---|
| Selling price | 6.00 |
| Variable cost per unit | 2.50 |
| Fixed costs (per month) | 3,500 |
1.[2]
Identify two reasons why finance is important for a business like JuiceHub.
2.[2]
State two sources of finance used by JuiceHub.
3.[2]
Calculate the contribution per unit for the tropical smoothie. Show all your working.
4.[2]
Explain one advantage of targeting a specific market segment for JuiceHub.