IB BUSINESS MANAGEMENT SL, Paper 2, May, 2013, TZ0, Solved Past Paper

Sayaka Toguchi runs a small office cleaning service called Office Cleaners (OC). She operates as a sole trader, meaning she owns and manages the business by herself without any employees. Her business is part of the tertiary sector, which involves providing services rather than goods. Currently, she has four clients in the same building. Sayaka is considering expanding her business after receiving an offer from a large bank in the same building. The bank is offering a contract that would require her to hire an additional employee and purchase new equipment with a loan. The contract promises a steady income, but also introduces new costs and responsibilities. Sayaka is concerned about potential employee absences and the impact on her business operations.

Khalil Damascus Supplies (KDS) is a company that specializes in selling construction materials like cement and bricks to other businesses. Located in an industrial area in Damascus, the company is managed by Ahmed Khalil. Recently, small construction companies have shown interest in KDS offering a crane rental service, as they often lack their own cranes. In response, Ahmed is considering purchasing two cranes, each costing $100,000. He believes this investment will not only allow KDS to break even on the crane rental income but also attract new customers, thereby increasing sales of construction materials.