IB BUSINESS MANAGEMENT HL, Paper 2, November, 2013, TZ0, Solved Past Paper

Scoot Fun (SF) is a family-owned private limited company that specializes in renting scooters to students. They plan to replace most of their scooters in January 2014 by purchasing 20 new scooters at a total cost of $\mathrm{\$}80,000$. These scooters are expected to have a useful life of four years, with a total residual value of $\mathrm{\$}4,000$. The Finance Manager at SF currently uses a straight-line method of depreciation but is considering switching to a reducing balance method. Additionally, the Finance Manager is exploring various sources of finance for the purchase of the new scooters. SF's shareholders are interested in receiving higher dividends, and one way to achieve this is by legally reducing the company's tax expenses in the coming year.

The Portuguese company Mapa faced significant challenges with their handheld global positioning system (GPS) devices, particularly in cold weather. The devices, which are crucial for providing accurate geographic coordinates, were reported to have inaccuracies, leading to several accidents and fatalities among mountain climbers. This issue was exacerbated by Mapa's organizational structure and communication problems, both internally and with their Icelandic component supplier. The production process of the GPS device involves several tasks, each with specific dependencies and durations, as outlined in the provided table.