BBM Study Guide 2026
Everything you need to pass the BBM exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 BBM Exam Format at a Glance
📚 BBM Topics to Study (25)
✍️ Sample BBM Questions & Answers
1. The primary purpose of a balanced scorecard in strategic management is to:
The balanced scorecard, developed by Kaplan and Norton, aligns organizational activities with strategy by measuring performance across financial, customer, internal process, and learning perspectives.
2. What is 'outsourcing' in operations management?
Outsourcing involves contracting non-core business functions (like IT, manufacturing, or customer service) to external providers to reduce costs or access expertise.
3. What does 'amortization' typically refer to in business finance?
Amortization refers to the scheduled repayment of a loan principal or the systematic write-down of intangible assets like patents over their useful lives.
4. Which organizations would require access to the details of a corporate plan?
All of the above. A corporate plan outlines an organization's strategic direction, goals, and how it intends to achieve them. Major lenders require this information to assess financial viability and risk, employees need it to understand their roles and the company's future, and shareholders use it to evaluate investment potential and governance. Therefore, all these stakeholders require access to the details of a corporate plan to varying degrees.
5. What is market segmentation?
Market segmentation divides a heterogeneous market into distinct groups of consumers who share similar characteristics, needs, or behaviors.
6. What does IRR stand for in capital budgeting?
IRR (Internal Rate of Return) is the discount rate at which an investment's NPV equals zero, used to evaluate project profitability.