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
100 Marks
Calculator NOT allowed
IB BUSINESS MANAGEMENT HL, Paper 2, November, 2011, TZ0, Solved Past Paper
Master the 2011 IB November for Paper 2 Business Management HL with examiner tailored solutions and comments for TZ0
Question 1 [Explained]
Revive Livre (RL) is a renowned bookshop located in central London, known for its vast collection of second-hand books. Operated by two brothers, James and Nick Cusack, RL has built a strong brand identity with the slogan "Hard to find but worth the time." However, the bookshop faces challenges due to changing reading habits and competition from online retailers like Amazon. Customers have expressed dissatisfaction with the store's layout and size, and RL is experiencing liquidity issues due to excessive working capital tied up in unsold books. James has proposed three options for physical expansion to address these issues, aiming to enhance customer service and improve liquidity.
Question 1 [a] [Explanation]
This question asks you to define two key business terms: partnership and working capital. Understanding these terms is essential for analyzing RL's business structure and financial situation.
Question 1 [a] [i] [Explanation]
Define the term partnership.
Question 1 [a] [ii] [Explanation]
Define the term working capital.
Question 1 [b] [Explanation]
This question requires you to explain two disadvantages for RL of having too much working capital tied up in unsold second-hand books. Consider the implications on liquidity and customer experience.
Question 1 [c] [i] [Explanation]
This question requires you to construct a fully labelled decision tree for James' three options of physical expansion for RL. You need to calculate the predicted outcome for each option and identify the most profitable one, showing all your working.
Question 1 [c] [ii] [Explanation]
Explain one advantage and one disadvantage for RL of using a decision tree as a decision-making tool.
Question 1 [d] [Explanation]
Contrast James' strategy of physical expansion with Nick's e-commerce strategy. Consider the financial, operational, and strategic implications of each approach.