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.
01 Hours 45 Minutes
50 Marks
Calculator is allowed
IB BUSINESS MANAGEMENT SL, Paper 2, May, 2019, TZ0, Solved Past Paper
Master the 2019 IB May for Paper 2 Business Management SL with examiner tailored solutions and comments for TZ0
Question 1 [Explained]
Carolina is planning to establish a bakery named Las Migas in a small town. Given the strong competition from existing bakeries, she needs a bank loan to supplement her personal savings. The bank manager has requested a business plan and a cash flow forecast for the first four months of operations. Carolina, despite her lack of experience in financial forecasting, has estimated the figures for the first four months, which are summarized in Table 1.
Estimated sales per month | Monthly rent | Interest | Opening balance | Ingredients and supplies | Electricity per month | Carolina's monthly salary |
|---|---|---|---|---|---|---|
For the first two months of operations: $1500 | $1000 | $45 to be paid every two months starting the first month of operation | $100 | 30% of sales | 1% of sales | $390 |
Question 1 [a] [Explanation]
This question asks you to identify two elements, other than a cash flow forecast, that should be included in a business plan. A business plan is a comprehensive document that outlines the objectives, strategies, and financial projections of a business. It serves as a roadmap for the business and is often required by banks and investors to assess the viability of the business.
Question 1 [b] [Explanation]
This question requires you to prepare a cash flow forecast for Las Migas for the first four months of operations. A cash flow forecast is a financial document that estimates the inflows and outflows of cash over a specific period. It helps in understanding the liquidity position of the business and planning for future cash needs.
Question 1 [c] [Explanation]
This question asks you to explain one problem that Las Migas may experience as a new business. New businesses often face various challenges, including financial, operational, and market-related issues. Identifying and understanding these problems is crucial for the survival and growth of the business.
Question 2 [Explained]
DuffJD provides a laundry service for towels and sheets to three hotel chains in a major city, Hoyluk. It provides each hotel chain with trade credit. Competition in this market is increasing, as two rivals are planning to offer laundry services to hotel chains in Hoyluk.
The financial data for DuffJD for 2018 is as follows:
Annual fixed costs | Variable costs per item | Price charged per item laundered | Number of Items laundered |
|---|---|---|---|
$ 75000 | $ 0.50 | $ 2.00 | 200000 |
Question 2 [a] [Explanation]
Define the term trade credit.
Question 2 [b] [Explanation]
Using the financial data for DuffJD for 2018, calculate: