DP Business Management Questionbank

Describe two advantages to MSS of being a charity (line 14).

Explain, with reference to MSS, the purpose of the mission and vision statements (line 37).

Define the term economies of scale (line 36).

Explain two restraining forces relating to change at MSS.

Define the term diseconomy of scale.

Examine Elaine’s proposals to cut back on GT’s commitment to its employees and CSR practices.

Define the term ethical objective.

State two features of a partnership.

Explain how each of the two external threats arising from the STEEPLE analysis would have impacted on farmers’ incomes in the developing world.

Examine Pedro’s proposal to create an agricultural cooperative in his community rather than continuing to operate as a sole trader.

With reference to Utopia, describe the importance of two external stakeholders (line 12).

With reference to JAC, describe two advantages of internal growth (line 52).

Explain the role of ethics in John’s businesses.

With reference to Utopia, explain the differences between secondary sector activities and tertiary sector activities.

John felt that the decision about expanding JAC into the international markets of the Pacific Islands did not depend on the decision about the 3D printing project. However, he decided that they should not enter the markets at the same time, so they had to choose between starting with Fiji, Samoa or New Zealand. John stressed to Liza that, as with the construction of the Utopia villas, the choice of a new international market should strongly consider cultural influences and norms. For this reason, John favoured Fiji and Samoa over New Zealand, arguing that they are more culturally similar to Ratu. However, the final decision not being made, John asked Liza to do some more research into the idea and into the two markets. The results of her ideas are summarized in Tables 1, 2 and 3.

Table 1: Liza’s market research results

Liza drew up the following decision tree to help clarify the decision process and try to quantify the issues involved in the decision.

Using the case study and the additional information above, recommend which of the Pacific Island markets JAC should enter. Completing the decision tree and using the results could help you in your answer.

Recommend which of Option 1 and Option 2 SV should consider in order to increase sales.

Describe one possible objective of a public health organization.

Explain two characteristics of an intrapreneur at HS.

Recommend which of Option 1 and Option 2 HS should implement.

Recommend which of Option 1 and Option 2 SV should consider in order to increase sales.

Discuss whether Zack should sell Petra half of his shares with her conditions.

With reference to Medimatters, describe two steps in setting up a new business.

Refer to case study: Medimatters

The group are considering two target markets.

Option 1: enter the Asian market

Emma strongly prefers this option. She recently presented IBAT at a medical conference in Asia. Great interest was shown and some attendees wanted to purchase samples at the conference. However, sales in Asia are not possible, because IBAT has not yet met regulatory quality standards there.

Falit also prefers this option because significant economies of scale could be gained. He also fears that other businesses will launch a similar product in Asia. The costs of entering the market would be relatively small for Medimatters. A suitable medical equipment wholesaler who could market and distribute the product operates in the region.

Ahmed and Didi are concerned. Quality issues with the lens manufacturer in India are worrying and should be resolved. They would like market research to be conducted to assess the suitability of Asian, as well as European and American, markets.

Option 2: continue to sell in Brazil

Didi favours this option. Always cautious, he thinks that current difficulties should be resolved before further expansion. He forecasts a reasonable first-year profit – far more than most new businesses. Ahmed likes the fact that he would not have to take on any additional workload or travel across the world: he is already struggling to manage his responsibilities. Carlo prefers this option because he wants to avoid the problems of growing too quickly, because many overambitious new businesses fail.

In preparation for the next group meeting, a decision tree showing both options has been produced.

Using the case study and the additional information in this question, recommend whether Medimatters should implement option 1 or option 2.

You will find it useful to calculate the predicted outcome for option 2 in the decision tree.

Refer to case study: Medimatters

Define the term vision statement.

Refer to case study: Medimatters

Describe one feature of a private limited company.

Explain two roles of A4A’s mission statement.

Using the Ansoff matrix, evaluate the two possible growth strategies for A4A.

Describe one feature of a private limited company.

Refer to Afghan Sun case study SL/HL P1 May and Nov 2018

With reference to AK Bank, describe two features of for-profit microfinance providers.

Refer to Afghan Sun case study SL/HL P1 May and Nov 2018

Explain the advantages for Su of forming AS as a private limited company.

Refer to Afghan Sun case study SL/HL P1 May and Nov 2018.

Define two characteristics of a charity.

Refer to Afghan Sun case study SL/HL P1 May and Nov 2018.

Recommend whether AS should enter into a joint venture with DF.

Refer to Afghan Sun case study SL/HL P1 May and Nov 2018.

Using information from the case study, the resource and appropriate business tools, discuss the value to Su of the force field analysis in deciding whether to grow through change.

Describe one role of a vision statement for HS. 

Explain how the following can benefit HS:

intrapreneurship.

Explain two possible economies of scale available to global fast food restaurants but not HS.

Discuss the two options that Tom is considering for HS in response to the intense competition.

Define the term public sector.

Explain one advantage and one disadvantage for SD of using an internal growth strategy.

Explain one positive and one negative impact of the multinational company, RE, on the developing country.

Refer to the As Fair As case study (SL/HL paper 1 Nov 2018).

Describe two external stakeholders of AFA, other than customers.

Refer to the As Fair As case study (SL/HL paper 1 Nov 2018) in the supplemental material.

Discuss whether Sam should accept the offer of a takeover.

Refer to the As Fair As case study (SL/HL paper 1 Nov 2018).

Explain the usefulness of a Gantt chart to AFA in planning the implementation of a new process.

Refer to the As Fair As case study (SL/HL paper 1 Nov 2018).

Using the case study, resources and appropriate business tools, recommend whether AFA should take over ABC.

Define the term multinational company (MNC).

Discuss the role and impact of globalization on the growth and evolution of JS.

Identify two features of a private limited company.

Discuss DH’s decision to develop a policy of corporate social responsibility (CSR).

Explain two roles of Benno’s mission statement.

Recommend whether Benno should replace its plastic drink rings with the new biodegradable drink rings.

With reference to an organization of your choice, examine the impact of globalization on change in operations management.

Define the term public limited company.

Evaluate the two options that KA is considering.

Discuss whether LB should implement proposal 1 or proposal 2.

With reference to RDM, describe how changes in operations management altered its relationship with two other business functions.

Describe two changes in the external environment that have affected RDM.

Using the case study and the resources, recommend whether RDM should choose Option 1 or Option 2.

Recommend whether RDM should choose Option 1 or Option 2.

State two elements, other than a cash flow forecast, of a business plan.

Explain one problem that Las Migas may experience as a new business.

With reference to AI, discuss Lloyd’s view that being a small organization has merits.

Explain one advantage and one disadvantage of WE changing its legal status to a public limited company.

With reference to WE, distinguish between internal and external growth.

Discuss whether WE should retain its programme of corporate social responsibility (CSR).

Explain one advantage and one disadvantage for CH of having a mission statement.

Discuss CH’s decision to stop producing anti-venom vaccines.

Define the term cooperative.

Discuss whether JP should accept XYZ’s takeover bid.

Explain one cost and one benefit to The Warriors of committing to corporate social responsibility (CSR).

Explain possible economies of scale that may apply to ABC but not to Accord.

With reference to Accord, outline two possible steps for Aran and Kayla in starting the business.

Discuss Kayla’s plan to produce a range of snack bars.

Using the case study and the resources, recommend whether Accord should start making and selling snack bars or whether Kayla and Aran should sell Accord to SF. A force field analysis of the options could help you in your answer.

Describe one feature of a multinational company (MNC).

With reference to TS, evaluate the two merger options.

Describe one disadvantage of operating as a public limited company.

Explain one positive and one negative impact of FA on the developing country.

Construct a fully labelled decision tree and identify the best option for Sassy (show all your working).

Explain one limitation for Sassy of using a decision tree as a planning tool.

Define the term internal growth.

Define the term corporate social responsibility (CSR).

Outline two STEEPLE factors that have influenced DA’s business strategy.

Using the Ducal Aspirateurs case study and additional information, recommend whether DA should choose Option A or Option B (Decision 2).

Define the term public limited company.

Using the case study and additional information from Sections B and C, recommend whether DA should choose Option A or Option B. You may find it useful to complete and use the decision tree and to analyse Table 1.

Discuss Ben’s decision to enlarge the scale of BTO from one restaurant to three restaurants.

State two types of business, other than grocery stores, that operate in the tertiary sector.

Explain one economy of scale, other than purchasing economies of scale, from which NS might benefit.

Discuss two possible methods that NS 507 could use to regain lost market share.

State two features of a sole trader.

Explain one possible economy of scale from which JJ has benefitted.

Describe one feature of a private limited company.

Explain one advantage and one disadvantage for MC of having a mission statement.

Discuss whether MC should organize the live concert.

Recommend which of the two strategic growth options, Option 1 or Option 2, EI should implement.

State two types of external growth.

Explain two reasons why Jacques may have found the transition difficult when FI became a public limited company.

Recommend whether Henri should choose Option 1 or Option 2.

Explain how the proposed contract with Country X may conflict with MM ’s ethical objectives (lines 114–123).

Recommend whether MM should take over SF.

State two features of a cooperative.

State three of Buzza’s main business functions.

Explain one advantage and one disadvantage to Buzza of operating as a partnership.

Recommend whether RV ’s directors should choose Option 1 or Option 2.

With reference to KT, explain two problems that a new business may face.

Recommend whether KT should choose Option 1 or Option 2.

Describe one feature of a cooperative.

Explain one advantage and one disadvantage to SSC of practising corporate social responsibility (CSR).

Discuss Chelsea’s idea to convert SSC into a public limited company.

With reference to MM, describe two features of a merger (lines 20–22).

Explain how MM could reduce stakeholder conflict in relation to its gold mine in Egypt (lines 103–107).

Using the case study and additional information from Section B, recommend whether MM should choose Option 1 or Option 2.

Using information from the case study and additional information above, discuss whether MM should sell its tar sands mining operation to JG.

State two features of a sole trader.

Discuss whether HP should choose Option 1 or Option 2.

Define the term secondary sector.

Explain, using the Ansoff Matrix, TZ’s proposed takeover of GG.

Recommend whether TZ’s directors should choose Option 1 or Option 2.

With reference to OS, explain one advantage and one disadvantage of operating as a private limited company.

Define the term public sector.

Discuss whether Charles should accept GF’s offer of a takeover.

Explain the possible impacts on PU of the ethical issues it faces (lines 101–117).

Outline two STEEPLE factors that influence PU’s decisions.

Define the term economies of scale.

State two features of a cooperative. 

State two features of a cooperative.

Explain one advantage and one disadvantage for CD of forming a partnership.

Describe one feature of a mission statement.

Discuss whether BM should diversify into specialist cat food or introduce a new distribution channel for dog food.

Explain how the school could overcome high labour turnover.

Discuss the differences in leadership style between Jacob and Mrs K.

Discuss human resource strategies that could reduce the impact on employees of the changes suggested by Mrs K.

Describe the time rate method of paying wages.

Explain one advantage and one disadvantage for GC of recruiting gardeners externally.

Explain one advantage and one disadvantage for GC of using off-the-job training for the cleaners who would like to become gardeners.

With reference to two motivation theories, examine the motivation of cleaners at GC.

Explain one advantage and one disadvantage to GC of having low labour turnover.

Explain two possible steps in the recruitment process of gardeners for GC.

With reference to John, explain the key functions of management.

Outline two common steps taken by a business in recruitment.

Explain two disadvantages for Wire of introducing a piece rate system of wages for its cleaning staff.

Calculate the financial impact on cleaners employed by Wire from the introduction of the piece rate system in 2016 (show all your working).

Outline two features of an autocratic leadership style.

Apply Daniel Pink’s motivation theory to the programmers at Gen Y.

Explain one advantage and one disadvantage for HS of using formative appraisal.

Outline two features of an autocratic leadership style.

Apply Daniel Pink’s motivation theory to the programmers at Gen Y.

With reference to Medimatters, explain two steps in the process of recruitment to the customer services department.

Refer to case study: Medimatters

“Ahmed considered his role as leader.” Recommend an appropriate leadership style for Ahmed.

Refer to case study: Medimatters

“Ahmed considered his role as leader.” Recommend an appropriate leadership style for Ahmed.

Refer to case study: Medimatters

With reference to Mei and Chi, explain two differences between a manager and a leader.

Applying Maslow’s theory of needs, explain two reasons why the workers at CM are becoming demotivated.

Examine two industrial/employee relations methods other than strike action that workers could use at CM.

Define the term de-layering.

Explain one benefit and one negative consequence for TH of an increase in labour turnover.

Discuss the proposal to outsource all function room services to a private contractor.

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.

Explain how the following can benefit HS:

job enlargement

Explain one advantage and one disadvantage for CSS of introducing an employee share ownership scheme.

Explain one advantage and one disadvantage for CSS of implementing a projectbased organizational structure (Change 1).

With reference to Adams’s equity theory and Daniel Pink’s motivation theory, discuss Ebru’s decision to eliminate performance-related pay (PRP) (Change 2) and to allow employees to spend 20 % of their time on any project they wish (Change 3).

Define the term redundancy.

With reference to Maslow’s motivation theory, explain two reasons that some TM drivers left to drive for BT.

Refer to the As Fair As case study (SL/HL paper 1 Nov 2018).

Distinguish between the leadership styles of Sam and Finn.

Refer to the As Fair As case study (SL/HL paper 1 Nov 2018).

Explain one benefit and one cost to AFA of using fringe payments (perks) to financially reward staff. 

Refer to the As Fair As case study (SL/HL paper 1 Nov 2018).

State two elements of an organizational culture.

With reference to an organization of your choice, examine the impact of innovation on promotional strategy.

With reference to an organization of your choice, examine the impact of ethics and culture on human resource management.

Explain two possible human resource strategies that KA management could use to reduce employees’ resistance to change.

Explain two advantages for LB of using on the job training.

With reference to RDM, outline one advantage and one disadvantage of Jan’s leadership style (lines 88–89).

Explain how the methods used to motivate employees could have changed when RDM transformed from traditional mass production to highly automated production.

Describe one industrial/employee relations method used by employers.

Explain two possible reasons for RDM employees’ resistance to change if RDM enters the US market.

Explain two types of financial rewards, other than salary, that RDM might offer its engineers and computer scientists.

Draw a possible organizational chart for a manufacturing firm like AI if it is organized by function.

Explain how delegation might help AI improve its delivery times.

Outline two features of autocratic leadership.

Explain one cost and one benefit of a high labour turnover of managers for The Warriors.

Discuss two methods to resolve conflict for The Warriors other than a lock-out.

With reference to Accord, explain one advantage and one disadvantage of an organizational structure based on product.

Define the term labour turnover.

Discuss whether Aran and Kayla should change the organizational culture of Accord to overcome the problems with Enrich drinks.

Explain one benefit and one cost to FA of using an autocratic leadership style.

Outline one benefit of Viv’s leadership style and one benefit of Salah’s leadership style (lines 82–84).

Explain one advantage and one disadvantage for DA of replacing the current pay system and benefits with the proposed employment package (Decision 1).

Explain one advantage and one disadvantage for DA of changing from function-based cost centres to the cost centres proposed by Pierre.

Discuss the likely impact on DA’s organizational culture of the changes recommended by the management consultants.

Explain one positive impact and one negative impact on BTO as a result of having low labour turnover.

Explain one advantage and one disadvantage for FI of motivating its employees using Taylor’s motivation theory.

Outline two benefits for MM of outsourcing human resource management (HRM) (lines 51–54).

Explain how a formal system of appraisal may have avoided the problems caused by Clare (lines 86–100).

Explain two factors that may influence the motivation of employees at SF.

Discuss how cultural differences within MM may influence employer–employee relationships.

Explain one advantage and one disadvantage of the high labour turnover of designers at Buzza.

Describe one advantage and one disadvantage for MM of decentralization (lines 44–45).

Define the term flexitime.

State two features of a hierarchical organizational structure.

Explain one benefit and one limitation for GP resulting from the implementation of the shamrock organization structure for HN.

Explain one advantage and one disadvantage for GP resulting from the introduction of cognitive training for HN’s scientists.

Discuss two human resource strategies that GP could use to reduce the scientists’ resistance to the changes.

Define the term performance-related pay (PRP).

Explain one impact on PU and one impact on PU’s lecturers of the new working patterns.

Explain two elements of PU’s organizational culture after the accident at the nearby chemical plant.

Draw an organization chart for HA.

Describe one capital expenditure and one revenue expenditure for MSS (lines 16–17).

Calculate the value of X and the value of Y in Table 1.

With reference to Table 1, explain one way in which MSS could improve cash flow.

Explain the usefulness to MSS of the variance analysis in Table 1.

Using the information above and in Figure 1, recommend either Option 1 or Option 2 for MSS. You will find it useful to calculate the payback period for the two options.

Construct a profit and loss account for PP for the year ending 30 April 2017 based on the figures in Table 1 (show all your working).

Construct a forecasted profit and loss account for PP for the year ending 30 April 2018 based on the figures in Table 2 (show all your working).

Calculate the break-even quantity for Moverse (show all your working).

Construct a fully labelled break-even chart, to scale, for Moverse if 800 employees enroll on Moverse’s training programme.

Calculate the profit or loss if 800 employees enroll on Moverse’s training programme (show all your working).

State any two stages of the working capital cycle.

Calculate for GT:

the payback period for the €44 million investment in new equipment based on the forecasted increase in net cash flow (show all your working).

Calculate for GT:

the average rate of return (ARR) based on an annual increase in net cash flow of €6000 and assuming an asset life of the new equipment of eight years (show all your working).

With reference to GT, explain one advantage and one disadvantage of debt factoring.

Prepare a monthly cash-flow forecast for TC for the first six months of operation.

With reference to Utopia, describe two suitable sources of finance for the 3D printers (line 60).

Define the term variable cost.

Using the information above, calculate the payback period and the average rate of return (ARR) for the 3D printing project (show all your working).

Using information from the case study, additional information above and your results from part (c), recommend whether Utopia should proceed with the 3D printing project.

Using information from Table 1 and Table 2, calculate the net present value (NPV) for the 3D printing project.

Using information from the case study, additional information above and your results from part (c), discuss whether Utopia should proceed with the 3D printing project.

Calculate the values of X and Y in Table 1 (no working required).

Construct a profit and loss account for SE for 2015 and 2016.

Calculate net current assets (working capital) for 2016 (show all your working).

Outline two appropriate external short-term sources of finance for Anubis other than loans from family and friends.

Using the information above, prepare a fully labelled cash-flow forecast for Anubis from January to March 2018.

Comment on the predicted cash flow for Anubis for 2018.

Calculate the change in cleaning costs per room from the introduction of the piece rate system used by Wire.

Explain one reason, other than increased sales revenue, why it is important that Gen Y generates new revenue streams.

Using information in Table 1, calculate for BF stock turnover in days for 2015 (X) (show all your working).

Using information in Table 1, calculate for BF current ratio for 2015 (A) (show all your working).

Using information in Table 1, calculate for BF debtor days for 2016 (Y) (show all your working).

Referring to information in Table 1 and your calculations, explain the change in BF’s liquidity between 2015 and 2016.

Describe one disadvantage for GD of leasing.

Calculate the value (also known as net book value) of new machinery at 31 December 2017 using the straight line depreciation method (show all your working).

Calculate the value (also known as net book value) of new machinery at 31 December 2017 using the reducing/declining balance method, applying the industry depreciation rate of 40% per annum (show all your working).

Explain one advantage for GD of using the straight line balance depreciation method.

Explain one reason, other than increased sales revenue, why it is important that Gen Y generates new revenue streams.

Explain suitable sources of finance in order for Medimatters to finance the additional setup cost of $50 000 (line 92).

Refer to case study: Medimatters

Calculate the forecasted break-even quantity per month for the IBAT (show all your working).

Refer to case study: Medimatters

Calculate the forecasted monthly profit or loss if Medimatters sells 400 IBATs per month (show all your working).

Refer to case study: Medimatters

For the new warehouse, using information from the table, calculate the average rate of return (ARR) (show all your working).

For the new warehouse, using information from the table, calculate the payback period (show all your working).

For the new warehouse, using information from the table below, calculate the net present value (NPV) at a discount rate of 6 % (show all your working).

Define the term fixed cost.

Explain one disadvantage for S4U of using the NPV method of investment appraisal.

Calculate the break-even quantity of meals that CL must sell to pay for the increase in fixed costs of $3000 to provide these meals (show all your working).

Using the information in the table only, prepare a monthly cash flow forecast, for CL, for the first six months of operation.

Explain two advantages for TH of having three separate profit centres.

Using information from the table, calculate the missing figures V, W, X and Y (no working required).

Using information from the table, calculate the gross profit margin for 2015 and 2016 (no working required).

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.

Using the information in Table 3, calculate the break-even output for portable biomass sources of electricity (show all your working).

Refer to Afghan Sun case study SL/HL P1 May and Nov 2018.

Comment on the usefulness to AS of break-even analysis.

Refer to Afghan Sun case study SL/HL P1 May and Nov 2018.

Using the case study, resource and appropriate planning tools, recommend whether Su should choose Option 1, Option 2, or neither. You will find it useful to calculate the ARR for Option 1.

Define the term current assets.

Using Table 1, calculate Fishers’s net profit before interest and tax for 2017 (show all your working).

Explain why Fishers experiences a significant increase in current assets and current liabilities from March to October.

Construct a fully labelled balance sheet for VT for the end of 2017.

Calculate the acid test (quick) ratio for VT for 2018.

Explain one way VT could improve its liquidity.

Calculate:

the total contribution of existing meals sold per month (show all your working).

Calculate:

the total profit or loss on existing meals for May 2018 (show all your working).

Calculate:

the forecast profit or loss if Jill decides to make and sell gluten-free meals (show all your working).

Calculate:

the contribution per unit of a gluten-free meal if Jill decides to buy-in the gluten-free meals (show all your working).

Discuss two appropriate sources of finance for SD to purchase the scooters.

Refer to the As Fair As case study (SL/HL paper 1 Nov 2018).

With reference to AFA, explain why applying appropriate principles and ethics of accounting practice is important.

Refer to the As Fair As case study (SL/HL paper 1 Nov 2018).

Define the term intangible asset.

Refer to the As Fair As case study (SL/HL paper 1 Nov 2018).

Calculate the gross profit margin of AFA for 2016 and 2017.

Refer to the As Fair As case study (SL/HL paper 1 Nov 2018).

Explain one possible reason for the trend in gross profit margin for AFA between 2016 and 2017.

Refer to the As Fair As case study (SL/HL paper 1 Nov 2018).

(i) Calculate the inventory/stock turnover for woollen hats (show all your working).

(ii) Comment on your result in (b)(i).

Define the term capital expenditure.

(b) Using Table 1, calculate for PI:

(i) gross profit (X);

(ii) tax (Y).

(c) Using Table 1 and your calculations in (i) and (ii), construct a profit and loss account for PI.

Using Table 2, calculate the net cash flow (Z) for PI for 2019 (show all your working).

Explain the difference between profit and cash flow. 

Calculate the break-even level of output for PF for 2019 (show all your working).

Construct a fully labelled break-even chart, to scale, for PF for 2019.

Calculate the forecasted profit if PF sells 2400 chairs in 2019 (show all your working).

Calculate the net profit margins for DH for 2016 and 2017.

Calculate net current assets (working capital) for DH for 2016 and 2017.

Describe one limitation of a break-even analysis.

Calculate the number of dolls that DD needs to sell to achieve a profit of $4000 (show all your working).

Calculate the profit or loss in the first year if DD sells 400 dolls (show all your working).

Assuming that the quantity of dolls to be sold in the second year is 550 and costs remain unchanged, calculate the price per doll that DD would need to charge to make a $6500 profit.

Define the term debtors.

Using information from Table 1 construct a fully labelled balance sheet for Papel for the end of October 2018.

Using information from Table 1 calculate the current ratio for Papel for the end of October 2018.

Explain one possible strategy, other than elimination of credit sales, for Papel to improve its liquidity position.

Evaluate the two options that KA is considering.

Using the information in Table 1, calculate for Location A the payback period (show all your working).

Using the information in Table 1, calculate for Location A the average rate of return (ARR) (show all your working).

Prepare a cash flow forecast for Las Migas for the first four months of operations.

Define the term trade credit.

Using the financial data for DuffJD for 2018, calculate the contribution per unit per item laundered (no working required).

Using the financial data for DuffJD for 2018, calculate the margin of safety (no working required).

Draw a fully labelled break-even chart for DuffJD for 2018 using the data provided.

Explain how an increase in competition may affect DuffJD’s margin of safety.

Calculate the difference in AI’s net profit before interest and tax between 2018 and 2019 (show all your working).

Define the term revenue streams.

Define the term retained profit.

Explain two possible external sources of finance CH could use to continue production of anti-venom vaccines.

Using the information provided and in Table 1, calculating X and Y, construct a profit and loss account for Enjuice.

Using the information provided and in Table 1, calculate the gross profit margin (no working required).

Explain one strategy that Enjuice could use to increase its gross profit margin.

Other than a business angel (line 108), explain methods of external finance that Accord could use to increase production capacity (line 108).

Based on a target of 160 000 for the first year of production at Detox, calculate the gross profit generated by Detox.

Based on a target of 160 000 for the first year of production at Detox, calculate the net profit margin of Detox.

For Kayla’s proposal calculate the payback period.

For Kayla’s proposal calculate the net present value (NPV) using a discount rate of 6 %*.

Define the term margin of safety.

Using the financial data in Table 1, calculate the break-even level of output (show all your working).

Using the financial data in Table 1, calculate the percentage of total costs that were fixed costs for last year (show all your working).

Using the financial data in Table 1, calculate the level of profit for SSH at 2018’s level of production (show all your working).

Explain how the introduction of new production methods will affect the total cost line in SSH’s break-even chart.

Calculate, for Option 1 the average rate of return (ARR) (show all your working).

Calculate, for Option 1 the payback period (show all your working).

Calculate, for Option 2, the average rate of return (ARR) (show all your working).

Explain one reason why Option 1 may be a less risky investment than Option 2.

Calculate, for MWF, the break-even level of output for 2020.

Construct a fully labelled, to scale, break-even chart for MWF for 2020.

Calculate the profit if MWF sells 3600 window fans in 2020.

Using the financial information in Table 1, evaluate two strategies that CM could use to improve its financial position other than changing to a just-in-time (JIT) stock control method.

Explain suitable sources of finance for Option B.

Define the term retained profit.

Using Table 1, calculate for Option B the average rate of return (ARR) (show all your working).

Using Table 1, calculate for Option B the payback period (no working required).

Explain one advantage and one disadvantage for DA of changing from function-based cost centres to the cost centres proposed by Pierre.

Calculate the difference between the cost for DA to make the rechargeable batteries and the cost to buy them from XL.

State two features of debt factoring.

Using the information in Table 1, construct a fully labelled cash flow forecast for MV for the first six months of 2021.

Explain the potential impact on MV’s gross profit margin if the prices charged by its suppliers increase in the second half of 2021.

Using Table 2, calculate X (no working required).

Using Table 2, calculate the current ratio for 2019 (no working required).

Using Table 2, prepare a balance sheet for the year ending 31 December 2019.

Explain the possible changes to KPJ’s balance sheet for 2019 if KPJ spent $30 000 on a new digital projector.

State two appropriate sources of finance Ben may have used when he first opened his vegan food stall.

Calculate, for 2019, NS 507’s gross profit margin (no working required).

Calculate, for 2019, NS 507’s net profit before interest and tax (no working required).

State two characteristics of a business angel.

Explain one advantage and one disadvantage of using a break-even analysis for PP.

Recommend whether Pablo should choose Option 1 or Option 2.

Using information in Table 1, for JJ, prepare a profit and loss account for the budgeted figures and the actual figures
(show all your working).

Using information in Table 1, for JJ, prepare a variance analysis (show all your working).

Define the term working capital cycle.

Prepare a monthly cash flow forecast for BB for the first four months of operation.

Explain one strategy that BB could use to significantly improve its forecasted cash flow for January 2021.

Explain one advantage and one disadvantage for MC of using venture capital to provide financial support.

With reference to MM, outline two sources of finance suitable for taking over the film studio in India (lines 144–147).

Using Table 1 calculate the current ratio for SF for 2020 (show all your working).

Using Table 1 suggest one reason why SF may have a liquidity problem.

Calculate the debtor days for MM at the end 2020 (show all your working).

Explain one method MM could use to improve its liquidity.

Using Figure 1 explain what the y axis shows.

Using Figure 1 calculate forecasted profit if sales are 25 000 units in 2021 (show all your working).

Using Figure 1 calculate the total contribution in 2021 if Hafs only sells 20 000 units (show all your working).

Explain whether an increase in total fixed costs has an impact on unit contribution.

Calculate which store made the highest net profit before interest and tax (no working required).

Calculate which store had the highest profitability (show all your working).

Calculate TPS’ equity.

Calculate TPS’ return on capital employed (ROCE) (show all your working).

Explain one effect that the $50 000 long-term debt may have on TPS’ profit and loss account.

Calculate the payback period if RV chooses Option 2 (show all your working).

Explain one disadvantage to RV of using the payback period method of investment appraisal.

Using total contribution, calculate the forecasted total profit for SSL before the introduction of the new promotional strategy (show all your working).

Construct a fully labelled break-even chart for SSL for before the new promotional strategy is introduced (show all your working).

Explain strategies MM could use to improve cash flow in its palladium mine in South Africa (Table 1).

Calculate for MM: the average rate of return (ARR) for the lithium mine (show all your working).

Construct a fully labelled break-even chart, to scale, for JG for 2022.

Calculate JG’s level of profit if sales are 20 000 units in 2022 (show all your working).

Explain how the changes that Jill expects in fixed and variable costs in 2023 would affect the total costs line of the break-even chart from your answer to (b).

Calculating X and Y in Table 3, prepare a profit and loss account for WC for 2022 (show all your working).

Using Table 4, calculate WC’s net cash flow for 2022 (show all your working).

Explain the difference between WC’s profit and its cash flow.

Explain two factors that might prevent TZ from increasing its gross profit margin.

With reference to OS, explain the difference between capital expenditure and revenue expenditure.

Describe one disadvantage of using the reducing/declining balance method of depreciation.

Using the reducing/declining balance method of depreciation, calculate PB Ltd’s annual depreciation of fixed assets for 2019 and 2020. Use 5 % as the depreciation rate (show all your working).

Using the selected financial information in Table 1 and your answer from (b)(i), prepare a balance sheet for PB Ltd for 31 December 2020.

Using the selected financial data in Table 2, calculate for SP for 2020: 

the break-even level of output (show all your working).

Using the selected financial data in Table 2, calculate for SP for 2020: 

the margin of safety (show all your working).

Using the selected financial data in Table 2, calculate for SP for 2020: 

the net profit (show all your working).

Explain how the impact of the increase in rent and the forecast increase in sales in 2021 could affect SP’s profitability.

Explain strategies, in addition to redundancies, that PU could use to solve its cash-flow problems (lines 56–59).

Using the straight line method, calculate the annual depreciation for each laptop (show all your working).

Comment on the usefulness to PU of the results of your calculation in part (i).

Explain the potential impact on AXL if it implements its planned increase in trade credit period.

Calculate RE’s gross profit margin (no working required).

Explain why HA had to raise additional external finance to increase production.

With reference to RS, explain the difference between capital expenditure and revenue expenditure.

Using the information provided above and in Table 1, calculate the total contribution per month for the production of 20 000 chocolate-filled donuts (show all your working).

Using the information provided above and in Table 2, calculate the payback period for the new machine (show all your working).

Using the information provided above and in Table 2, calculate the average rate of return (ARR) for the new machine (show all your working).

Using Table 3 and the information provided above, prepare a monthly cash-flow forecast for LLC for the first four months of operations.

Define the term fixed cost.

Describe two features of the school’s marketing mix (line 54).

Explain a suitable promotional mix that MSS might use to attract new students.

Explain one advantage and one disadvantage for Jacob of using convenience sampling.

Describe one reason why brand loyalty would be important to PP.

Using the table, construct a product position map/perception map for all four companies.

Explain how DE’s innovation is an extension strategy.

With reference to DE, discuss the merits of small organizations compared to large organizations.

Define the term secondary market research.

Explain one advantage and one disadvantage for MM of using sales forecasting.

Explain one cost and one benefit for MM of setting up an e-commerce website.

Using the Boston Consulting Group (BCG) matrix, discuss the two new tactics André is considering to ensure MM’s future success. 

With reference to Utopia, explain the role of promotion (line 6).

With reference to Utopia, explain two benefits of having a strong brand.

John felt that the decision about expanding JAC into the international markets of the Pacific Islands did not depend on the decision about the 3D printing project. However, he decided that they should not enter the markets at the same time, so they had to choose between starting with Fiji, Samoa or New Zealand. John stressed to Liza that, as with the construction of the Utopia villas, the choice of a new international market should strongly consider cultural influences and norms. For this reason, John favoured Fiji and Samoa over New Zealand, arguing that they are more culturally similar to Ratu. However, the final decision not being made, John asked Liza to do some more research into the idea and into the two markets. The results of her ideas are summarized in Tables 1, 2 and 3.

Table 1: Liza’s market research results

Liza drew up the following decision tree to help clarify the decision process and try to quantify the issues involved in the decision.

Using the case study and the additional information above, recommend which of the Pacific Island markets JAC should enter. Completing the decision tree and using the results could help you in your answer.

Describe one feature of a wholesaler.

Define the term price skimming.

Describe one characteristic of a niche market.

With reference to SV, explain one advantage and one disadvantage of using secondary market research.

Given the intense competition, explain two pricing strategies SV might consider.

Describe one characteristic of a niche market.

With reference to SV, explain one advantage and one disadvantage of using secondary market research.

Given the intense competition, explain two pricing strategies SV might consider.

With reference to Medimatters, describe two benefits of having a marketing plan.

Refer to case study: Medimatters

Explain the factors influencing a suitable promotional strategy for the IBAT app.

Refer to case study: Medimatters

With reference to Medimatters, describe two features of batch production.

Refer to case study: Medimatters

The group are considering two target markets.

Option 1: enter the Asian market

Emma strongly prefers this option. She recently presented IBAT at a medical conference in Asia. Great interest was shown and some attendees wanted to purchase samples at the conference. However, sales in Asia are not possible, because IBAT has not yet met regulatory quality standards there.

Falit also prefers this option because significant economies of scale could be gained. He also fears that other businesses will launch a similar product in Asia. The costs of entering the market would be relatively small for Medimatters. A suitable medical equipment wholesaler who could market and distribute the product operates in the region.

Ahmed and Didi are concerned. Quality issues with the lens manufacturer in India are worrying and should be resolved. They would like market research to be conducted to assess the suitability of Asian, as well as European and American, markets.

Option 2: continue to sell in Brazil

Didi favours this option. Always cautious, he thinks that current difficulties should be resolved before further expansion. He forecasts a reasonable first-year profit – far more than most new businesses. Ahmed likes the fact that he would not have to take on any additional workload or travel across the world: he is already struggling to manage his responsibilities. Carlo prefers this option because he wants to avoid the problems of growing too quickly, because many overambitious new businesses fail.

In preparation for the next group meeting, a decision tree showing both options has been produced.

Using the case study and the additional information in this question, recommend whether Medimatters should implement option 1 or option 2.

You will find it useful to calculate the predicted outcome for option 2 in the decision tree.

Refer to case study: Medimatters

Explain two relevant secondary market research methods (sources) that Emma could have used to identify potential customers.

Refer to case study: Medimatters

Define the term market share.

Define the term target market.

Explain one advantage and one disadvantage for A4A of using a predatory pricing strategy.

Define the term loss leader pricing strategy.

Using the quantitative information in the table and your answers to part (b), comment on the impact of a loss leader pricing strategy on VG.

Construct a position/perception map for all four brands of scooter.

Explain the relationship between Rasen’s product life cycle and FC’s marketing mix.

Discuss the importance of branding for FC and for Rasen.

Refer to Afghan Sun case study SL/HL P1 May and Nov 2018. 

Define the term four-part moving average.

Refer to Afghan Sun case study SL/HL P1 May and Nov 2018.

With reference to AS, explain the difference between commercial marketing and social marketing of the solar power systems (line 53).

Define the term unique selling point/proposition (USP).

State two stages of the product life cycle.

Apply the Boston Consulting Group (BCG) matrix to JVS’s current product portfolio.

Explain one advantage and one disadvantage for JVS of using focus groups for its market research.

Recommend whether JVS should launch the new product, Izzless.

Define the term market share.

Discuss the new strategy to differentiate TM from BT.

Refer to the As Fair As case study (SL/HL paper 1 Nov 2018).

Describe two elements of a marketing plan (line 21) for AFA.

Refer to the As Fair As case study (SL/HL paper 1 Nov 2018).

With reference to AFA, explain the importance of branding.

Refer to the As Fair As case study (SL/HL paper 1 Nov 2018).

With reference to AFA, outline one benefit and one cost to Sam of opening a new e-commerce website (lines 51–52).

Explain the importance to JS of brand value.

Explain the importance to JS of brand loyalty.

Draw and label a product life cycle for Strutz’s No.5 jeans.

Explain the position of Strutz’s No.5 jeans on the product life cycle.

Explain one method of above-the-line promotion and one method of below-the-line promotion that DH could use to raise consumer awareness that it is a socially responsible company.

Explain one advantage and one disadvantage for Benno of using a focus group of loyal customers.

With reference to an organization of your choice, examine the impact of innovation on promotional strategy.

Define the term brand loyalty.

Explain the importance to LB of two elements of the extended marketing mix.

Explain how innovation at RDM may have influenced their marketing practices.

Using information from the case study and the resource, discuss the opportunities and threats for RDM of entering the US market.

Calculate the total size of the plastic container market in 2019 (show all your working).

State two methods of primary market research.

Explain one positive and one negative impact of social media marketing on JP’s promotional strategy.

Explain how Accord can differentiate Enrich from the products of its competitors.

Describe two reasons why secondary market research may not be useful to Accord.

State two methods of primary market research.

Calculate TS’ market share in 2018 (show all your working).

Explain two disadvantages and one advantage to TS of selling its products online.

State two types of above-the-line promotion.

Using Table 1, construct a product position map/perception map for all four hotels prior to the opening of GR.

Explain two ways in which GR is able to offer rooms at a lower price than IF.

Discuss possible changes to IF’s marketing mix to reduce the loss of customers to GR.

Explain one advantage and one disadvantage for CM of using a cost-plus (mark-up) pricing strategy.

With reference to DA, outline two suitable methods of sampling (lines 112–113).

Explain how knowledge of the product life cycle may have influenced DA’s product range.

Define the term price discrimination.

Explain one advantage and one disadvantage for BTO as a result of its use of social media.

Explain two elements of U-Foods’ marketing mix other than price.

Discuss two possible methods that NS 507 could use to regain lost market share.

Explain two reasons why Pablo conducted primary market research.

Define the term unique selling point/proposition (USP).

Explain the importance of people and processes in EI’s extended marketing mix.

Explain one advantage and one disadvantage for EI of using a focus group.

Explain how MM has differentiated itself.

Define the term social marketing.

Define the term unique selling point/proposition (USP).

Explain how the people element of the extended marketing mix has influenced MM ’s marketing strategy.

Describe one step in the development of a brand.

Define the term niche market.

Explain two benefits to RV of the decision to adopt e-commerce.

Define the term product orientation.

With reference to Option 1, for KT, explain the relationship between the product life cycle, investment, profit and cash flow.

Explain one advantage to SSL from implementing the new promotional strategy.

Explain one advantage and one disadvantage for SSC of having a product-orientated marketing approach.

Describe two differences for MM between marketing its minerals (a product) and marketing its hotels (a service).

Calculate for MM: its market share worldwide in gold in 2020 (show all your working).

Explain one advantage and one disadvantage for MM of using convenience sampling for its market research.

With reference to Table 2, explain one benefit and one limitation for MM of using sales forecasting.

Define the term market segment.

Construct a Boston Consulting Group (BCG) matrix for HP, identifying the correct segments for HP’s standard rooms and its HP+ upgraded rooms if Option 2 is chosen.

Explain one advantage and one disadvantage for HP of using secondary market research.

State two marketing objectives that a company might have.

Discuss possible changes to any two elements of OS’s marketing mix.

State two methods of primary market research.

Define the term cost-plus (mark-up) pricing strategy.

Explain two benefits for SF of using social media marketing.

Describe two long-term benefits for PU of its marketing strategies (lines 60–64).

Explain two methods of primary market research that PU could use to monitor the progress of each course.

Using information from the case study and additional information above, discuss the importance to PU of the extended marketing mix in the provision of services at the university.

State two ways in which market share can be measured.

With reference to RS, explain the importance of branding.

Explain two advantages of BM’s unique selling point/proposition (USP).

Explain one advantage and one disadvantage for BM of using a cost-plus (mark-up) pricing strategy.

Define the term contingency plan.

Using the table, construct a product position map/perception map for all four companies.

Define the term productivity rate.

Explain one cost and one benefit to Pedro of conducting extensive research and development.

Describe one method of lean production other than recycling.

Recommend if Dales should stop outsourcing the cleaning of hotel rooms.

Assuming the production of the lenses is outsourced, explain the differences in how Medimatters would manage  operations for its products/goods (the lens) and its service (the app).

Refer to case study: Medimatters

Define the term lean production.

Refer to case study: Medimatters

Calculate the cost to make and the cost to buy IBAT lenses (show all your working).

Refer to case study: Medimatters

Briefly comment on your results in (c)(i).

Refer to case study: Medimatters

Discuss the proposal to outsource all function room services to a private contractor.

Refer to Afghan Sun case study SL/HL P1 May and Nov 2018

Su is considering two possible locations for the production facility (lines 51–52). Explain the factors (reasons) that Su may consider when deciding between the two locations.

Refer to Afghan Sun case study SL/HL P1 May and Nov 2018

Describe two advantages for AS of using cellular manufacturing in the production of its solar power systems.

Refer to Afghan Sun case study SL/HL P1 May and Nov 2018.

Explain how total quality management (TQM) could help AS improve the quality of its products.

Define the term supply chain.

Calculate:

the forecast profit or loss if Jill decides to make and sell gluten-free meals (show all your working).

Calculate:

the contribution per unit of a gluten-free meal if Jill decides to buy-in the gluten-free meals (show all your working).

Using your answer from (b) (iii) and (iv), explain whether Jill should buy-in or make the gluten-free meals herself.

Explain one advantage and one disadvantage for SD of working at almost full capacity utilization.

Refer to the As Fair As case study (SL/HL paper 1 Nov 2018).

Discuss the value to AFA of lean production methods.

Define the term batch production.

Define the term innovation.

With reference to an organization of your choice, examine the impact of innovation on promotional strategy.

With reference to an organization of your choice, examine the impact of globalization on change in operations management.

Calculate the capacity utilization rate at the break-even quantity for DD for the first year of operation (show all your working).

With reference to QS, explain two features of cradle to cradle manufacturing.

Explain how RDM’s transformation of its manufacturing process from traditional mass production to highly automated production affected the interests of internal stakeholders.

Using the resource, calculate the current capacity utilization rate at RDM’s factory.

Calculate the increase in capacity at RDM if the company builds a new production facility (show all your working).

State two reasons for selecting a specific location for production.

Recommend whether RDM should choose Option 1 or Option 2.

Outline two features of batch production.

Explain two benefits to JP of using quality circles.

Outline two advantages for Accord of using job/customized production.

Define the term batch production.

With reference to Accord, explain one advantage and one disadvantage of using total quality management (TQM).

Describe one disadvantage for an organization of operating at high capacity utilization.

Explain one advantage and one disadvantage for CM of changing its stock control method from just-in-case (JIC) to just-in-time (JIT).

Explain the factors that DA would need to consider before deciding to outsource some of its production (line 110).

Calculate the difference between the cost for DA to make the rechargeable batteries and the cost to buy them from XL.

Suggest one other factor that DA should consider before deciding whether to make the rechargeable batteries or buy them from XL.

Outline two reasons why MM may relocate all of its operations to Bengaluru (lines 124–142).

State two features of product innovation.

Explain the strategies used by MM to achieve sustainability.

Define the term just-in-time (JIT) production.

With reference to MM, explain the difference between crisis management and contingency planning.

Explain one benefit and one cost to SF of using a flow production method.

Define the term contingency planning.

Recommend whether HA should choose Option 1 or Option 2. 

Define the term productivity rate.