| Date | May 2018 | Marks available | 6 | Reference code | 18M.1.SL.TZ0.1 |
| Level | Standard level | Paper | Paper 1 | Time zone | Time zone 0 |
| Command term | Explain | Question number | 1 | Adapted from | N/A |
Question
Refer to Afghan Sun case study SL/HL P1 May and Nov 2018.
With reference to Table 2, describe two advantages for Su of using a cash-flow forecast.
Refer to Afghan Sun case study SL/HL P1 May and Nov 2018
With reference to Su and her managers at HH and AS, explain the differences between leadership and management.
Markscheme
Possible advantages include:
• it shows when there is expected to be cash shortfall (especially late 2018, early 2019)
• it is suitable for “what if”. For example, if a bigger loan was sought there might not be a cash shortfall.
• for use as a planning tool
• to inform stakeholders (e.g. banks when finance is needed)
Do not reward ideas such as:
• predicting future costs
• calculating/assessing profits
NB Cash flow, profit, liquidity, working capital are all different concepts so do not reward profit or liquidity or working capital unless the candidate demonstrates that cash flows indicate areas for improvement and that improving management of cash flow could lead to improved profits or improved liquidity.
Context will usually be achieved by using information from the table.
Any other relevant advantage.
Mark as 2 + 2.
Award [1] for each advantage identified, and [1] for the development of each of this advantage in the context of AS. Award up to a maximum of [2] per advantage.
Refer to Paper 1 markbands for May 2016 forward, available under the "Your tests" tab > supplemental resources.
Su shows distinct leadership qualities. She:
• inspires
• sets missions
• takes responsibility for strategic decisions
• takes on the role of spokesperson
• delegates, advises, guides
• shows features of McGregor Theory Y.
Her managerial roles are somewhat limited but include organizing at a corporate level. Most of the management functions are delegated.
Managers, for example David and Salima, fulfil management functions including:
• making day-to-day decisions
• making tactical decisions
• organizing resources, directing, coordinating staff.
Accept any other relevant difference.
Marks should be allocated according to the Paper 1 markbands for May 2016 forward, section A.
Award a maximum of [3] for a theoretical answer
Award a maximum of [4] if no reference to David/Salima (managers)
Award a maximum of [5] if the explanation of differences is mainly descriptive, but in context.
To achieve 5 or 6 marks there has to be a comparison.
