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, 2013, TZ0, Solved Past Paper
Master the 2013 IB November for Paper 2 Business Management SL with examiner tailored solutions and comments for TZ0
Question 1 [Explained]
Belluno Frames (BF) is a small, family-owned business in northern Italy, operating as a private limited company. It is owned by Giovanni and Elda Rizzo, who plan to pass it on to their son, Antonio. The business manufactures high-quality frames for glasses, with Giovanni designing the frames and Antonio, along with two employees, handling production. Elda manages the administration. BF is located in a building owned by Giovanni and Elda, situated 42 kilometers outside Belluno. Antonio is considering relocating the business to an industrial park in Belluno to improve access to suppliers and customers, as well as to enhance the company's visibility.
Question 1 [a] [Explanation]
This question involves understanding the nature of the private sector and the advantages of operating as a private limited company.
Question 1 [a] [i] [Explanation]
The term 'private sector' refers to the part of the economy that is owned and managed by private individuals, partnerships, and corporations, rather than being controlled by the state. These organizations typically operate for profit and are distinct from the public sector, which includes government-owned entities. In the context of BF, being part of the private sector means that the company is privately owned by the Rizzo family and operates independently of government control.
Question 1 [a] [ii] [Explanation]
This part of the question asks for the identification of two advantages for BF of operating as a private limited company.
Question 1 [b] [Explanation]
This question requires calculations related to BF's financial performance at its current location, including break-even level of output, margin of safety, and profit or loss.
Question 1 [b] [i] [Explanation]
To calculate the break-even level of output, we need to determine the point at which total revenue equals total costs. This involves calculating fixed costs and the contribution per frame.
Question 1 [b] [ii] [Explanation]
The margin of safety indicates how much sales can drop before the business reaches its break-even point. It is calculated as the difference between the current level of output and the break-even level of output.
Question 1 [b] [iii] [Explanation]
To determine the profit or loss at the current level of 1300 frames sold, we need to calculate the total revenue and total costs, then find the difference.