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 30 Minutes
100 Marks
Calculator NOT allowed
IB BUSINESS MANAGEMENT HL, Paper 2, May, 2008, TZ0, Solved Past Paper
Master the 2008 IB May for Paper 2 Business Management HL with examiner tailored solutions and comments for TZ0
Question 1 [Explained]
The passage describes the virtual world of Second Life, where users can engage in various activities using a 3D character. It highlights the economic transactions within this virtual space, where real money is exchanged for virtual goods and services. Major corporations like Dell and IBM utilize this platform for marketing, aiming to reach niche audiences and technologically savvy consumers. The text also discusses the financial aspects of establishing a presence in Second Life, with significant costs involved for businesses.
Question 1 [a] [Explanation]
This question asks you to define the term niche market. A niche market is a specific, defined segment of the market that is targeted by businesses. It is characterized by a distinct set of needs or preferences that differentiate it from the broader market.
Question 1 [b] [Explanation]
This question requires you to explain the advantages that major corporations, such as Dell and IBM, gain from market segmentation and consumer targeting. These strategies allow businesses to identify and focus on specific customer groups, tailoring their marketing efforts to meet the unique needs of these segments.
Question 1 [c] [Explanation]
This question asks you to discuss how firms may adapt their marketing strategies and marketing mixes in response to technological changes, such as the growth of platforms like Second Life. Companies must continuously evolve their approaches to remain competitive in a rapidly changing digital landscape.
Question 2 [Explained]
George Melly has initiated a new business venture by establishing a private limited company, Gemel Ltd, in January 2008. He holds a significant majority share of 80% and serves as the Chief Executive Officer. The remaining shares are owned by his accountant, Peter Mears. To launch the business, George estimated a financial requirement of $300,000 and developed a business plan, including forecasted financial information, to secure the necessary funding. However, Peter Mears identified a missing provision for depreciation on the firm's fixed assets, initially valued at $200,000 with an estimated scrap value of $40,000 after a four-year lifespan. The financial data for 2008 and 2009 is summarized in the table provided.
2008 ($000) | 2009 ($000) | |
|---|---|---|
Turnover | 485 | 870 |
Cost of sales | 245 | 450 |
Expenses | 91 | 138 |
Non-operating income | 11 | 13 |
Interest | 20 | 55 |
Tax | 35 | 60 |
Dividends | 60 | 75 |
Question 2 [a] [Explanation]
This question requires you to calculate the annual depreciation expense for the business's fixed assets using the straight-line depreciation method. The straight-line method spreads the cost of an asset evenly over its useful life, taking into account its initial cost, estimated scrap value, and lifespan. You need to determine the annual depreciation amount that was omitted from the financial statements.
Question 2 [b] [Explanation]
This question requires you to prepare profit and loss accounts for the years 2008 and 2009 using the provided financial information. You must adjust the figures to include the provision for depreciation calculated in part (a) and recalculate the tax payment to equal 25% of net profit before tax. This involves understanding how depreciation affects expenses and how tax is calculated based on net profit.