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IB Business Management SL 1.2.4 Non-profit social enterprises Question Bank

Practise IB Business Management SL 1.2.4 by identifying charity features, objectives and differences from profit-based organisations.

Syllabus
First assessment 2024
Course
Business management SL
Level
SL

Exam points

  • Define characteristics of a charity or other non-profit organisation.
  • Explain how non-profit objectives differ from profit maximisation in a case organisation.
  • Identify an advantage of charity status for the organisation and its stakeholders.

1.2.4—Non-profit social enterprises question 1

[Maximum number: 4]

Mikumi Secondary School (MSS) is run as an educational charity for girls in a remote rural area of Tanzania. Jacob donated land and buildings; the government provides grants and charities in Tanzania and overseas provide donations. A charity can attract grants and donations, pursue educational and social objectives rather than profit, and build trust and community support. MSS pays government salary scales but has high teacher labour turnover of about 30 %. Teachers cite poor living accommodation, difficulty teaching only in English, and no career or professional development. Possible solutions include better accommodation, language support, training, career paths, promotion, improved motivation and recruitment.

Describe two advantages to M S S of being a charity.

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