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, May, 2010, TZ0, Solved Past Paper
Master the 2010 IB May for Paper 2 Business Management HL with examiner tailored solutions and comments for TZ0
Question 1 [Explained]
The New Philanthropy Foundation (NPF) is a non-profit organization established by Steve Dawes in 2005, focusing on providing educational opportunities for children in developing countries. The foundation operates online and relies heavily on donations, which have been declining due to economic challenges. NPF has no debt or fixed assets, and its expenses include internet fees, server maintenance, and web design. Volunteers from around the world help run the organization, which aims to be paperless, using only digital means for communication and fund transfers.
Recently, NPF has been offered a chance to sponsor an online concert by a popular rock band, which could enhance its public relations but also poses financial and technical risks. Steve is preparing a cash-flow forecast for the next six months to assess the financial situation, considering factors such as donation timing and operational costs.
Question 1 [a] [Explanation]
This question requires you to define two key terms: 'vision statement' and 'public relations.' Understanding these terms is essential for analyzing how organizations like NPF communicate their goals and manage their public image.
Question 1 [a] [i] [Explanation]
A vision statement is a declaration of an organization's long-term goals and aspirations. It outlines where the organization aims to be in the future, often reflecting its core values and purpose. Vision statements are typically optimistic and serve as a guiding principle for strategic planning and decision-making.
Question 1 [a] [ii] [Explanation]
Public relations (PR) involves managing an organization's communication with the public and media to shape its image and reputation. PR activities aim to generate positive publicity, build relationships with stakeholders, and address any potential issues that could impact the organization's standing.
Question 1 [b] [Explanation]
This question involves preparing a cash-flow forecast for NPF from June to November 2010. You will need to calculate the opening and closing cash balances for each month, considering the forecasted donations, expenses, and any other financial activities.
Question 1 [b] [i] [Explanation]
To create a cash-flow forecast for NPF, consider the opening balance, forecasted donations, and expenses for each month. Calculate the total cash available and the outflows, including donation transfers and operational costs. Determine the closing balance by subtracting total outflows from total inflows for each month.
Question 1 [b] [ii] [Explanation]
This question asks you to comment on the results of the cash-flow forecast from part (i). Analyze the trends and identify any potential issues or areas of concern, such as cash shortages or unexpected expenses.