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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.

02 Hours 15 Minutes

70 Marks

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IB BUSINESS MANAGEMENT HL, Paper 2, November, 2017, TZ0, Solved Past Paper

Master the 2017 IB November for Paper 2 Business Management HL with examiner tailored solutions and comments for TZ0

Question 1 [Explained]

Pelican Pies (PP) is a company that produces high-quality pies. Although their pies are more expensive than those of their competitors, they have limited brand loyalty outside their local market. In 2018, the owner, Austin, plans to increase sales by lowering prices and increasing promotional spending. This will require an additional loan of $10,000.

Question 1 [a] [Explanation]

This question asks you to describe one reason why brand loyalty would be important to Pelican Pies (PP).

Question 1 [b] [Explanation]

This question asks you to construct a profit and loss account for Pelican Pies (PP) for the year ending 30 April 2017, based on the figures in Table 1. Show all your working.

Question 1 [c] [Explanation]

This question asks you to construct a forecasted profit and loss account for Pelican Pies (PP) for the year ending 30 April 2018, based on the figures in Table 2. Show all your working.

Question 2 [Explained]

Luis and José have established a partnership named Tasty Cupcake (TC) to bake and sell cupcakes directly to consumers and supermarkets. They invested their savings of $3000 as starting capital. To support their business operations, they need an overdraft agreement from the local bank. The bank manager has requested a cash-flow forecast for the first six months of operation, starting in January.

Below are the sales and cost projections for the first six months, as forecasted by Luis.

Question 2 [a] [Explanation]

This question asks you to state two features of a partnership. A partnership is a business structure where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Deed.

Question 2 [b] [Explanation]

This question requires you to prepare a monthly cash-flow forecast for Tasty Cupcake (TC) for the first six months of operation. A cash-flow forecast is a financial document that estimates the amount of money expected to flow in and out of a business over a specific period. It helps in planning and managing the business's financial resources.