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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, 2016, TZ0, Solved Past Paper

Master the 2016 IB May for Paper 2 Business Management SL with examiner tailored solutions and comments for TZ0

Question 1 [Explained]

Rio Mobiliário (RM) is a Brazilian furniture manufacturer that operates in South America, North America, and Europe. The company has successfully outsourced its production and distribution facilities to North America, leveraging external organizations to handle these aspects of its operations.


Question 1 [a] [Explanation]

This question asks you to define the term outsourcing. Outsourcing is a business strategy where a company contracts out certain tasks or services to external organizations rather than performing them in-house. This can include various functions such as production, human resources, distribution, and marketing. The key aspect of outsourcing is that it involves an external organization taking over specific operations of a business, which can help the company focus on its core competencies and potentially reduce costs.


Question 1 [b] [i] [Explanation]

This question requires you to calculate the gross profit for Rio Mobiliário (RM) using the provided financial data. Gross profit is calculated by subtracting the cost of goods sold (COGS) from the sales revenue. The calculation does not require detailed working, so you can directly compute the value using the given figures.


Question 1 [b] [ii] [Explanation]

This question involves calculating Y, the net profit before interest and tax, and then using it to determine the net profit margin for Rio Mobiliário (RM). The net profit margin is a financial metric that indicates the percentage of revenue that remains as profit after all expenses have been deducted, excluding interest and tax.


Question 1 [b] [iii] [Explanation]

This question requires you to construct a fully labelled balance sheet for Rio Mobiliário (RM) using the provided financial data. A balance sheet is a financial statement that summarizes a company's assets, liabilities, and equity at a specific point in time, providing insights into its financial position.


Question 2 [Explained]

Parder is a company that manufactures ride-on lawnmowers. The company incurs various costs in its operations, which are categorized into fixed and variable costs. Understanding these costs is crucial for determining the company's financial performance and planning its production levels.


Question 2 [a] [Explanation]

This part of the question requires you to define the term 'variable costs'. Variable costs are essential in understanding how costs change with production levels.