A01s

Define
To define something means to give a precise meaning of a word, phrase, concept or physical quantity

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

A02s
Analyze
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 of 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

A03s
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 &
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 examination 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.

A04s
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)

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 labeled, 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 labeling 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)