IB BUSINESS MANAGEMENT SL, Paper 2, May, 2006, TZ0, Solved Past Paper

In 2004, Danae and Rocio Tefero established a business named El Burro in Granada, Spain, offering donkey tours. They identified a niche market by providing a unique experience for tourists, especially the elderly, who might struggle with the region's steep hills. The sisters borrowed funds to purchase donkeys, which are a protected species in the area, and face challenges such as expensive and custom-made harnesses. Despite local concerns about the welfare of the donkeys, the sisters argue that donkeys are an environmentally friendly mode of transport, causing no noise or pollution. They are committed to supporting the local community through educational programs, allowing children, including those with disabilities, to learn about and ride the donkeys. The business advertises its services through local tourist offices and offers educational rides at a modest fee.

Teddybears Picnics Ltd is a company that specializes in producing teddy bears. The financial information provided includes details for the years 2004 and 2005. This information is crucial for analyzing the company's financial health and performance over these two years. The data includes figures for fixed assets, sales revenue, cash, stock, debtors, cost of sales, creditors, retained profit, overheads, and long-term liabilities. Understanding these terms and how they relate to the company's financial statements is essential for evaluating its financial position and profitability.