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These are explanations and solutions for IB past papers, not the official version. For official papers, you can go to IB Follet or access them through your school.

01 Hours 45 Minutes

50 Marks

Calculator is allowed

IB BUSINESS MANAGEMENT HL, Paper 2, May, 2021, TZ0, Solved Past Paper

Master the 2021 IB May for Paper 2 Business Management HL with examiner tailored solutions and comments for TZ0

Question 1 [Explained]

The Pie Store (TPS) is a business that bakes pies and sells them in three retail stores. The company has cleverly used the mathematical symbol π (pi) in its branding. In 2020, each store made a profit. The financial data for each store is summarized in the following table:

	Store 1	Store 2	Store 3
Sales	180000	223000	170000
Cost of goods sold	90000	120000	85000
Gross profit	90000	103000	85000
Expenses	66000	76000	67000
Net profit before interest and tax	X	Y	Z

Question 1 [a] [Explanation]

This question asks you to describe one step in the development of a brand. Developing a brand involves several strategic steps to create a unique identity and position in the market.

Question 1 [b] [i] [Explanation]

This question asks you to determine which store made the highest net profit before interest and tax. No working is required for this part.

Question 1 [b] [ii] [Explanation]

This question asks you to calculate which store had the highest profitability. You need to show all your working to arrive at the answer.

Question 1 [c] [i] [Explanation]

This question asks you to calculate TPS' equity. Equity is calculated as the difference between total assets and total liabilities.