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
100 Marks
Calculator NOT allowed
IB BUSINESS MANAGEMENT SL, Paper 2, May, 2010, TZ0, Solved Past Paper
Master the 2010 IB May for Paper 2 Business Management SL with examiner tailored solutions and comments for TZ0
Question 1 [Explained]
Natura Cosméticos is a Brazilian company known for its ethical approach and commitment to sustainable development. The company produces a range of cosmetic products using natural ingredients from the Amazon rainforest. Natura Cosméticos supports local villagers by encouraging traditional sustainable farming techniques. The company’s mission statement emphasizes its commitment to building a better world through sustainable development. This mission guides the company’s operations and decision-making processes.
The company sells its products through a direct sales distribution network, employing over 60,000 self-employed partners, primarily women, who work part-time on a profit-related pay structure. This approach is beneficial in Brazil, where employment opportunities are limited, and wages are low, offering flexible working conditions. Consumers appreciate the personal service and interaction provided by this direct distribution method.
In recent years, Natura Cosméticos has experienced significant growth, with an average annual revenue increase of 25% between 1995 and 2003. To accommodate future growth, the company built a new manufacturing plant in 2006, financed by a long-term loan. The financial performance of Natura Cosméticos for the years ending 31 May 2006 and 2007 is summarized in a profit and loss account, highlighting key financial figures such as sales revenue, cost of goods sold, gross profit, expenses, net profit before interest and tax, interest, and tax.
Question 1 [a] [Explanation]
This question asks you to outline the purpose of the mission statement of Natura Cosméticos. A mission statement is a concise declaration of a company's core purpose and focus that remains unchanged over time. It serves as a guide for decision-making and provides a framework for evaluating opportunities and challenges. For Natura Cosméticos, the mission statement reflects its commitment to ethical practices and sustainable development, guiding its strategic, tactical, and operational decisions.
Question 1 [b] [i] [Explanation]
This question requires you to calculate the missing financial values (X) for the years 2006 and 2007 in the profit and loss account of Natura Cosméticos. These values include the cost of goods sold, gross profit, expenses, and net profit before interest and tax. You will need to use the given financial data to perform the calculations and determine the missing figures.
Question 1 [b] [ii] [Explanation]
This question asks you to calculate the gross profit margin and net profit margin for Natura Cosméticos for the years 2006 and 2007. These financial ratios provide insights into the company's profitability and efficiency in managing its costs. The gross profit margin is calculated by dividing the gross profit by sales revenue, while the net profit margin is calculated by dividing the net profit by sales revenue.
Question 1 [b] [iii] [Explanation]
This question asks you to comment on the change in interest expenses between 2006 and 2007 for Natura Cosméticos. You need to analyze the financial data and provide insights into the reasons for this change, considering the company's financial activities and decisions during this period.