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
HLPaper 3
With reference to Resource 2, describe one human resource concern that may affect BioBox’s operations performance.
1.[2]
With reference to Resource 2, describe one human resource concern that may affect BioBox’s operations performance.
Question 3
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 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 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.
Statement of Financial Position: AstraPod Ltd. (as at 31 December 2024) (All figures in $m)
| Non-current assets | |
|---|---|
| Property, plant and equipment Accumulated depreciation ** Non-current assets ** | 1,200 (200) 1,000 |
| Current assets Cash Debtors Stock **Current assets ** I ** Total assets ** | 250 300 150 700 1,700 |
| Current liabilities Trade creditors Bank overdraft Short-term loan ** Current liabilities ** | 150 50 200 400 |
| Non-current liabilities Long-term borrowings I ** Total liabilities ** | 300 700 |
| ** Net assets ** Retained earnings | 1,000 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:
(i) Creditor days
(ii) 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 6
HLPaper 3
SparkFit Apparel Ltd.
Resource 1 - Newspaper Article
"Local Apparel Brand, SparkFit, Strives to Compete in the Global Activewear Market"
Resource 2 - Financial Statement (Income Statement 2023)
Income Statement for the Year Ending December 31, 2023
Operating Expenses:
| Item | Amount |
|---|---|
| Sales Revenue | £1,200,000 |
| Cost of Sales | £800,000 |
| Gross Profit | £400,000 |
| Expense | Amount |
|---|---|
| Marketing | £50,000 |
| Administrative Expenses | £100,000 |
| Total Operating Expenses | £150,000 |
| Item | Amount |
|---|---|
| Operating Profit | £250,000 |
| Interest | £20,000 |
| Retained Profit | £230,000 |
Despite a 20% increase in revenue compared to 2022, SparkFit faces pressure from production and marketing expenses, impacting profitability.
Resource 3 - Marketing Strategy Flowchart
Market Research - Identify target demographics interested in eco-friendly activewear.
Product Development - Focus on sustainability and quality in material sourcing.
Digital Advertising - Emphasis on social media platforms like Instagram and TikTok.
Influencer Partnerships - Engage with eco-conscious influencers for brand authenticity.
Customer Feedback Loop - Integrate customer feedback for continuous product improvement.
Resource 4 - Consumer Research Summary
A survey conducted by MarketWatch Research among 5,000 UK-based consumers aged 18-34 reveals that 73% of respondents favor brands with sustainable practices. However, only 45% are willing to pay a premium for these options. For SparkFit, this signals both opportunity and challenge, as the eco-conscious market may not guarantee increased sales without pricing strategies that resonate with young buyers.
Competitors have also increased eco-friendly offerings, emphasizing SparkFit’s need for a compelling brand identity and distinct positioning.
Resource 5 - Marketing Campaign Report
1.[2]
Using an appropriate business management theory, identify a human need that SparkFit’s products satisfy for their target consumers.
2.[6]
Outline two challenges SparkFit faces in scaling their digital marketing efforts. Support your answer with evidence from the resources.
3.[17]
Based on the resources and your business knowledge, recommend a comprehensive marketing strategy to improve SparkFit’s brand awareness and competitiveness over the next five years. Your strategy should consider product positioning, digital marketing channels, pricing, and brand partnerships.
Question 7
SLPaper 2
NutriWell Ltd (NW)
NutriWell Ltd (NW) is a rapidly growing business in Canada specializing in health supplements and wellness products. Due to significant growth, NW recently restructured its organizational structure, changing from a flat organizational structure to a hierarchical structure with clearly defined roles and formal reporting lines.
The new structure created communication challenges, resulting in employees feeling disconnected from senior management. This has led to declining employee motivation and productivity, increasing the need for effective human resource management (HRM).
NW is also planning to launch a new range of vegan supplements targeting young adults. To support this launch, NW must undertake comprehensive market research to identify consumer preferences and behavior.
The company's marketing team argues that a successful marketing strategy depends heavily on effective internal communication between departments, including marketing, production, and HR.
1.[2]
Define the term ‘organizational structure’.
2.[4]
Explain two roles of human resource management (HRM) at NW.
3.[4]
Explain two benefits of effective internal communication for NW’s marketing strategy.
4.[4]
Explain two reasons why NW should conduct market research before launching its new vegan supplements
5.[10]
Evaluate whether NW should revert to a flat organizational structure or retain its current hierarchical structure, considering communication, HR management, and marketing implications.
Question 8
SLPaper 2
Question 52 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.
Statement of Financial Position: AstraPod Ltd. (as at 31 December 2024) (All figures in $m)
| Non-current assets | ||
|---|---|---|
| Property, plant and equipment | 1,200 | |
| Accumulated depreciation | (200) | |
| Non-current assets | 1,000 | |
| Current assets | ||
| Cash | 250 | |
| Debtors | 300 | |
| Stock | 150 | |
| Current assets | 700 | |
| Total assets | 1,700 | |
| Current liabilities | ||
| Trade creditors | 150 | |
| Bank overdraft | 50 | |
| Short-term loan | 200 | |
| Current liabilities | 400 | |
| Non-current liabilities | ||
| 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:
(i) Creditor days
(ii) 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 9
HLPaper 2
Question 52 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.
Statement of Financial Position: AstraPod Ltd. (as at 31 December 2024) (All figures in $m)
| Non-current assets | |
|---|---|
| Property, plant and equipment Accumulated depreciation ** Non-current assets ** | 1,200 (200) 1,000 |
| Current assets Cash Debtors Stock **Current assets ** I ** Total assets ** | 250 300 150 700 1,700 |
| Current liabilities Trade creditors Bank overdraft Short-term loan ** Current liabilities ** | 150 50 200 400 |
| Non-current liabilities Long-term borrowings I ** Total liabilities ** | 300 700 |
| ** Net assets ** Retained earnings | 1,000 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:
(i) Creditor days
(ii) 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
HLPaper 2
CleanWave Ltd (CW)
CleanWave Ltd (CW) is a successful manufacturer of sustainable clothing based in Sweden. CW has grown significantly and now plans to expand internationally, entering markets in the United States and South Korea.
To support its international expansion, CW recently adopted a matrix organizational structure, combining functional and geographical divisions. This structure aims to enhance responsiveness to local market conditions. However, employees have reported increased confusion about their roles and responsibilities, creating challenges for communication across departments and geographical locations.
CW invests significantly in research and development (R&D) to maintain a competitive advantage through innovative, eco-friendly materials. The company's current marketing strategy focuses on environmental sustainability and quality. CW's marketing team debates whether to adopt a standardized international marketing approach or adapt specifically to consumer preferences in the US and South Korean markets.
1.[2]
Define the term ‘business’.
2.[4]
Explain two features of a matrix organizational structure at CW.
3.[4]
Explain two benefits for CW of effective communication within its matrix structure.
4.[4]
Explain two reasons why CW invests in research and development (R&D).
5.[10]
Evaluate whether CW should adopt a standardized or adapted international marketing strategy for the US and South Korea markets.