IB BUSINESS MANAGEMENT SL, Paper 2, November, 2008, TZ0, Solved Past Paper

Temasek Holdings, established in 1974, is a prominent investment company based in Singapore. Its mission statement emphasizes creating and maximizing long-term shareholder value by actively investing in and managing successful enterprises. To fulfill this mission, Temasek Holdings engages in various activities, such as managing a global portfolio of shares, primarily in Singapore and Southeast Asia, and actively buying and selling shares daily.

The company invests in diverse industries it finds attractive, including telecommunications, media, financial services, property, transportation, energy, infrastructure, engineering, technology, pharmaceuticals, and biosciences. Temasek Holdings focuses on companies with significant regional or global potential, aiming to develop them into successful enterprises that can expand beyond their current markets.

Additionally, Temasek Holdings is committed to its stakeholder relations program, providing financial support to Southeast Asian communities in need. For instance, in May 2006, the company collaborated with Indonesian banks to support a Singapore hospital in delivering medical care to Indonesians affected by an earthquake.

Burger Bar is planning to launch a new fast food business and is seeking a bank loan to support this venture. The bank requires that the business breaks even within the first year to approve the loan application. The proposal includes details such as the variable cost per burger, fixed costs for the year, projected sales, and the selling price per burger. The owners have conducted extensive market research to support their proposal.

The break-even analysis is crucial as it determines the point at which total revenues equal total costs, indicating no net loss or gain. This analysis is essential for assessing the financial viability of the business plan presented to the bank.