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/. 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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 – 5014 7 pages Tuesday 27 October 2020 (morning) 1 hour 45 minutes Business management Standard 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 one question. y Section C: answer one question. y A calculator is required for this examination paper. y The maximum mark for this examination paper is [50 marks]. – 2 – 8820 – 5014 Section A Answer one question from this section. 1. MiniVS (MV) MiniVS (MV) imports light bulbs, which it sells business to business (B2B) to customers in the UK. In 2020, MV ran into cash-flow problems and had to use debt factoring. MV has now solved its cash-flow problems. It operates a cost-plus (mark-up) pricing strategy and places a 100 % mark-up on the light bulbs that it purchases from suppliers. The forecasted opening cash balance for January 2021 is £20 000. Table 1: Forecasted data per month for MV for the first six months of 2021 (all figures in £) Months 1–3 Months 4–6 Cash sales per month 75 000 70 000 Warehouse overheads 5000 5000 Office salaries 30 000 30 000 Marketing costs 1000 1000 The finance director is concerned that the online market for light bulbs in the UK is becoming increasingly price competitive. She believes that if suppliers raise prices in the second half of 2021, MV will have to abandon its cost-plus (mark-up) pricing strategy to be price competitive. (a) State two features of debt factoring. [2] (b) Using the information in Table 1, construct a fully labelled cash flow forecast for MV for the first six months of 2021. [6] (c) Explain the potential impact on MV’s gross profit margin if the prices charged by its suppliers increase in the second half of 2021. [2] – 3 – 8820 – 5014 Turn over 2. KPJ KPJ operates a cinema in a small town. It uses a price discrimination strategy for cinema tickets. Table 2: Selected financial information for KPJ for year ending 31 December 2019 at 31 Dec 2019 (all figures in $) Cost of goods sold 122 000 Long-term liabilities (debt) 2800 Interest and tax 9500 Gross profit X Total current assets 8330 Sales revenue 175 000 Net fixed assets 63 000 Expenses 81 000 Total current liabilities 6800 Share capital 60 000 Accumulated retained profit 1730 (a) Define the term price discrimination. [2] (b) Using Table 2, calculate: (i) X (no working required); [1] (ii) the current ratio for 2019 (no working required). [1] (c) Using Table 2, prepare a balance sheet for the year ending 31 December 2019. [4] (d) Explain the possible changes to KPJ’s balance sheet for 2019 if KPJ spent $30 000 on a new digital projector. [2] – 4 – 8820 – 5014 Section B Answer one question from this section. 3. The Burnt Tomato (BTO) In 2003, Ben opened a street-food stall selling vegan food. The food stall was successful. Ben spent little on marketing, mainly advertising on the food stall itself and relocating it to places or events where many consumers would pass by. In 2008, Ben used the profits from the food stall to open a restaurant, The Burnt Tomato (BTO), which initially employed 16 people. In the following years, labour turnover was low. Employees received an annual bonus, which increased with each year of employment. In 2015, Ben created a website and began to use social-media marketing. Customers were encouraged to rate their BTO experience online. Their reviews consistently rated BTO’s experienced staff highly and showed that they thought the food was exceptional value. Ben replied to all reviews. Many BTO customers also joined a BTO social media group and communicated with each other and BTO regularly. For many customers, the total BTO experience of vegan food and social networking was like being in a club. Unfortunately, high labour costs, reasonable profits and the use of high-quality ingredients meant that BTO’s gross and net profit margins were below industry averages. Aware of the growing demand for vegan food, Ben borrowed money from a family member in 2018 and opened two more BTOs in different cities, hiring 32 new employees. However, in January 2019, a long-time customer of the original BTO ate at one of the new restaurants and wrote a negative review. The review went viral and sales at all three BTOs declined. (a) State two appropriate sources of finance Ben may have used when he first opened his vegan food stall. [2] (b) Explain one positive impact and one negative impact on BTO as a result of having low labour turnover. [4] (c) Explain one advantage and one disadvantage for BTO as a result of its use of social media. [4] (d) Discuss Ben’s decision to enlarge the scale of BTO from one restaurant to three restaurants. [10] – 5 – 8820 – 5014 Turn over 4. Nigris & Speroni (NS) Nigris & Speroni (NS) is a national grocery store chain. In the tertiary sector, it benefits from economies of scale, including purchasing economies of scale. Its stores use sophisticated computerization to manage stock and monitor customers’ purchasing habits. NS is currently experimenting with cleverly placed products and short-term promotions to increase impulse purchases, which occur when a customer makes unplanned purchases. Something in the store – a smell, a vivid display, samples of products – triggers a customer’s desire for items. NS has above-average prices compared to the industry average, but at least one other chain is more expensive. The grocery store industry is competitive and grocery stores use many different pricing strategies. NS is considering adopting an online ordering and delivery service for customers, which would operate from its stores. Each of NS’ stores is given a number to identify it. Store number 507 is called NS 507. Table 3: Selected financial information for NS 507 for 2019 Gross profit $5 300 000 Net profit margin 3 % Sales revenue $20 000 000 On 1 January 2020, an organic grocery store, U-Foods, opened near NS 507. U-Foods sells high-quality foods, including organically produced fruits and vegetables, organically raised meats and sustainably sourced seafood (not from fish farms). It charges higher prices than NS 507 and has higher margins. The few processed foods that it sells are organic and low in salt. Unlike NS 507, U-Foods does not sell cigarettes or high-sugar beverages and cereals. It is also not considering an online ordering and delivery service like NS is. In the first six uploads/Finance/business-management-paper-2-sl.pdf
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- Publié le Mai 29, 2022
- Catégorie Business / Finance
- Langue French
- Taille du fichier 0.3529MB