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.
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.
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.
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.
02 Hours 15 Minutes
70 Marks
Calculator is allowed
IB BUSINESS MANAGEMENT HL, Paper 2, November, 2020, TZ0, Solved Past Paper
Master the 2020 IB November for Paper 2 Business Management HL with examiner tailored solutions and comments for TZ0
Question 1 [Explained]
Jill created Jill's Jeans (JJ), a business operating as a sole trader. JJ specializes in custom-design jeans, which Jill designs herself and sells both online and at local markets. Due to increasing demand in 2020, JJ has experienced economies of scale, which are cost advantages that businesses obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.
The following table provides budgeted and actual financial figures for JJ:
Budgeted figure ($) | Actual figure ($) | |
|---|---|---|
Cost of goods sold | 3000 | 2500 |
Expenses | 1000 | 800 |
Sales revenue | 5000 | 4000 |
Question 1 [a] [Explanation]
This question asks you to state two features of a sole trader, which is a type of business owned and operated by a single individual.
Question 1 [b] [i] [Explanation]
This question requires you to prepare a profit and loss account for both the budgeted figures and the actual figures, showing all your workings.
Question 1 [b] [ii] [Explanation]
This question requires you to prepare a variance analysis, showing all your workings.
Question 1 [c] [Explanation]
This question asks you to explain one possible economy of scale from which JJ has benefitted.
Question 2 [Explained]
Dan, a young entrepreneur, is planning to start his own small business making hand-made wooden garden benches called Beautiful Benches (BB). The business offers its customers credit, meaning they pay 50% when they buy a bench and 50% one month later. Dan has been advised to pay close attention to BB's working capital cycle.
BB's sales revenue for the first four months is recorded as follows:
Month | Sales Revenue ($) |
|---|---|
January | 2000 |
February | 1000 |
March | 2500 |
April | 3000 |