No part of this product may be reproduced in any form or by any electronic or m
No part of this product may be reproduced in any form or by any electronic or mechanical means, including information storage and retrieval systems, without written permission from the IB. Additionally, the license tied with this product prohibits commercial use of any selected files or extracts from this product. Use by third parties, including but not limited to publishers, private teachers, tutoring or study services, preparatory schools, vendors operating curriculum mapping services or teacher resource digital platforms and app developers, is not permitted and is subject to the IB’s prior written consent via a license. More information on how to request a license can be obtained from https://ibo.org/become-an-ib-school/ib-publishing/licensing/applying-for-a-license/. Aucune partie de ce produit ne peut être reproduite sous quelque forme ni par quelque moyen que ce soit, électronique ou mécanique, y compris des systèmes de stockage et de récupération d’informations, sans l’autorisation écrite de l’IB. De plus, la licence associée à ce produit interdit toute utilisation commerciale de tout fichier ou extrait sélectionné dans ce produit. L’utilisation par des tiers, y compris, sans toutefois s’y limiter, des éditeurs, des professeurs particuliers, des services de tutorat ou d’aide aux études, des établissements de préparation à l’enseignement supérieur, des fournisseurs de services de planification des programmes d’études, des gestionnaires de plateformes pédagogiques en ligne, et des développeurs d’applications, n’est pas autorisée et est soumise au consentement écrit préalable de l’IB par l’intermédiaire d’une licence. Pour plus d’informations sur la procédure à suivre pour demander une licence, rendez-vous à l’adresse suivante : https://ibo.org/become-an-ib-school/ib-publishing/licensing/applying-for-a-license/. No se podrá reproducir ninguna parte de este producto de ninguna forma ni por ningún medio electrónico o mecánico, incluidos los sistemas de almacenamiento y recuperación de información, sin que medie la autorización escrita del IB. Además, la licencia vinculada a este producto prohíbe el uso con fines comerciales de todo archivo o fragmento seleccionado de este producto. El uso por parte de terceros —lo que incluye, a título enunciativo, editoriales, profesores particulares, servicios de apoyo académico o ayuda para el estudio, colegios preparatorios, desarrolladores de aplicaciones y entidades que presten servicios de planificación curricular u ofrezcan recursos para docentes mediante plataformas digitales— no está permitido y estará sujeto al otorgamiento previo de una licencia escrita por parte del IB. En este enlace encontrará más información sobre cómo solicitar una licencia: https://ibo.org/become-an-ib-school/ib-publishing/licensing/applying-for-a-license/. © International Baccalaureate Organization 2020 8820 – 5012 7 pages Tuesday 27 October 2020 (morning) 2 hours 15 minutes Business management Higher level Paper 2 Instructions to candidates y Do not open this examination paper until instructed to do so. y A clean copy of the business management formulae sheet is required for this examination paper. y Section A: answer one question. y Section B: answer two questions. y Section C: answer one question. y A calculator is required for this examination paper. y The maximum mark for this examination paper is [70 marks]. – 2 – 8820 – 5012 Section A Answer one question from this section. 1. Jill’s Jeans (JJ) Jill created Jill’s Jeans, which operates as a sole trader. JJ makes custom-design jeans. Jill designs all the jeans and sells them online and at local markets. Because of increasing demand in 2020, JJ has benefitted from economies of scale. Table 1: Budgeted and actual figures for the year ending 31 October 2020 Budgeted figure ($) Actual figure ($) Cost of goods sold 3000 2500 Expenses 1000 800 Sales revenue 5000 4000 (a) State two features of a sole trader. [2] (b) Using information in Table 1, for JJ, prepare: (i) a profit and loss account for the budgeted figures and the actual figures (show all your working); [3] (ii) a variance analysis (show all your working). [3] (c) Explain one possible economy of scale from which JJ has benefitted. [2] – 3 – 8820 – 5012 Turn over 2. Beautiful Benches (BB) Dan, a young entrepreneur, is planning to start his own small business making hand-made wooden garden benches – Beautiful Benches (BB). Table 2: Forecasted sales revenue for BB for the first four months of operation, starting 1 January 2021 (all figures in $) January 2000 February 1000 March 2500 April 3000 To be competitive, BB offers its customers credit. They pay 50 % when they buy a bench and 50 % one month later. Table 3: Selected forecasted financial information for BB for 2021 (all figures in $ and per month unless stated otherwise) Rent 400 per month, payable in advance every three months, starting 1 January 2021 Administration/Dan’s salary 1500 Marketing 200 Cost of sales 60 % of the same month’s sales revenues. BB will receive one month of credit from the suppliers Support for young entrepreneurs provided by the local government 150 Utilities 180 Agreed loan 3000 in the fourth month of operation only Tools/machinery 1000 in the first month of operation only Dan was advised to pay close attention to BB’s working capital cycle. (a) Define the term working capital cycle. [2] (b) Prepare a monthly cash flow forecast for BB for the first four months of operation. [6] (c) Explain one strategy that BB could use to significantly improve its forecasted cash flow for January 2021. [2] – 4 – 8820 – 5012 Section B Answer two questions from this section. 3. MusiCology MusiCology (MC) is a private limited company. Rob, the chief executive officer (CEO), founded it to encourage young people to play musical instruments, believing that too many young people either prefer to just listen to music or are abandoning traditional methods of making music in favour of generating it on computers. MC’s mission statement is: “MusiCology supports the playing of real music by real musicians on real instruments.” The business relies heavily on social media. MC offers downloadable online lessons and demonstrations prepared by professional musicians. Some of the lessons and demonstrations are free and some are paid for. Because MC has not been profitable, Rob asked Abbi, a technology specialist and successful provider of venture capital, for financial support. Abbi agreed, but insisted that MC organize a live music concert in six months that would be broadcast globally. She also thinks that MC’s mission statement needs updating. Abbi is confident that, with her social media connections and influence, the concert will be successful. She has contacted several artists, asking them to play, and their responses have been positive. The concert will also be pay-per-view*. Some artists have agreed to play for free, and several musical instrument manufacturers will sponsor the event. Abbi predicts significant profits. Rob likes the idea of the concert, but he doubts MC has the ability and resources to organize such an event. He is also concerned that some musicians will play computer-generated music, and fears a negative reaction on social media. Table 4: Selected financial information for MC for 31 October 2020 Current ratio 0.8 Forecasted net loss for year ending May 2021 $8 million Gearing ratio 75 % Forecasted profit for MusiCology if concert goes ahead in May 2021 $24 million * pay-per-view: a system that allows businesses to charge for premium content that otherwise might be shown for free (a) Describe one feature of a private limited company. [2] (b) Explain one advantage and one disadvantage for MC of having a mission statement. [4] (c) Explain one advantage and one disadvantage for MC of using venture capital to provide financial support. [4] (d) Discuss whether MC should organize the live concert. [10] – 5 – 8820 – 5012 Turn over 4. ExotIce ExotIce (EI) is a private limited company producing and selling ice cream from a centrally located shop in a large capital city. Lena, the founder and chief executive officer (CEO), owns 80 % of the shares. Her two daughters, who travel the world to find new and exotic natural ingredients for new flavours, each own 10 % of the shares. The family value their freedom in the decision-making process and the collaborative and supportive nature of EI’s culture. EI’s unique selling point/proposition (USP) is based on: y outstanding quality and a variety of exotic flavours made from fat-free natural ingredients y excellent service provided by highly trained, committed and efficient employees y customer involvement – with the use of sophisticated technology and staff support, customers can experiment to create their own flavours of ice cream. A strong brand name and brand loyalty has led to rapid growth in EI’s market share. However, long queues (lines) are forming and the number of customer complaints is increasing. Lena is worried about the negative impact on EI. Lena is considering two strategic growth options: y Option 1: Opening eight new shops locally and nationally over the next four years. To finance this internal growth, EI will sell new shares. After the sale, Lena will own 51 % of the shares. y Option 2: Franchising EI nationally. A small focus group conducted by one of Lena’s daughters and made up of local entrepreneurs revealed a strong interest in EI’s USP. Ten franchises will open each year for the next uploads/Finance/business-management-paper-2-hl 3 .pdf
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- Publié le Dec 14, 2022
- Catégorie Business / Finance
- Langue French
- Taille du fichier 0.4598MB