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
60 Marks
Calculator is allowed
IB BUSINESS MANAGEMENT SL, Paper 2, November, 2014, TZ0, Solved Past Paper
Master the 2014 IB November for Paper 2 Business Management SL with examiner tailored solutions and comments for TZ0
Question 1 [Explained]
Gepa Suparman owns and operates four fishing boats in Indonesia. He plans to expand his business by entering the secondary sector and opening a small factory to produce canned fish. The business will be called Suparman Fish (SF) and will be a private limited company. Gepa will own all the shares. The factory will be located in a village three miles from the harbor, where unemployment is high, making it easier to find workers. In addition to the manager's salary, workers' wages, and the cost of fish, supplies, and cans, SF will incur semi-variable costs for electricity.
Question 1 [a] [Explanation]
This question focuses on defining the term 'secondary sector' and identifying the advantages of being a private limited company for Suparman Fish (SF).
Question 1 [a] [i] [Explanation]
The term 'secondary sector' refers to the part of the economy that is concerned with manufacturing and processing. This sector takes raw materials from the primary sector and transforms them into finished goods or products. Examples include factories that produce cars, clothing, and, in this case, canned fish.
Question 1 [a] [ii] [Explanation]
This question asks for two advantages of Suparman Fish (SF) being a private limited company.
Question 1 [b] [Explanation]
This question asks for an explanation of why electricity is considered a semi-variable cost for SF.
Question 1 [c] [Explanation]
This question requires the preparation of a monthly cash-flow forecast for SF for the first four months of operation.
Question 1 [d] [Explanation]
This question asks for the calculation of SF's forecast net profit for the first four months of operation, with all workings shown.
Question 1 [e] [Explanation]
This question asks for the calculation of SF's forecast net profit margin for the first four months of operation.
Question 2 [Explained]
Raapin Guitars (RG) is a renowned guitar manufacturer in Finland known for its high-quality, handmade guitars. The company has a unique training program where apprentices, recruited at the age of 16 or 17, undergo a seven-year training period to become professional craftsmen. Each craftsman works with two apprentices to produce guitars using a batch production method. However, RG is facing challenges in recruiting talented teenagers for the apprentice program due to the increasing trend of Finnish youth pursuing higher education and careers in engineering and design technology. This has prompted the CEO, Anni Raapin, to consider transitioning from the traditional batch production process to an automated flow production process managed by engineers and operated by low-skilled workers.