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ib business management paper 2 may 2018 exam and markscheme
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M18/3/BUSMT/HP2/ENG/TZ0/XXBusiness management
Higher level
Paper 2
Monday 30 April 2018 (morning)
2 hours 15 minutes
Instructions to candidates
y Do not open this examination paper until instructed to do so.
y A clean copy of the business management formulae sheet is required for this examination
paper.
y Section A: answer one question.
y Section B: answer two questions.
y Section C: answer one question.
y A calculator is required for this examination paper.
y The maximum mark for this examination paper is [70 marks].
2218 – 5012
8 pages © International Baccalaureate Organization 2018
, –2– M18/3/BUSMT/HP2/ENG/TZ0/XX
Section A
Answer one question from this section.
1. Visionary Toys (VT)
Visionary Toys (VT) produces highly innovative toys for children. VT began operation in January
2017 and its unique selling point/proposition (USP) is producing toy parts with a 3D printer. VT
uses the reducing balance method of depreciation. 3D technology changes rapidly and the
!nancial directors are also considering ways o0 reducing VT’s tax liabilities in 2018. The !nancial
director presented !nancial in0ormation 0or VT at the end of 2017.
Table 1: Revenue and expense information for the year 2017 and balance sheet items at
31 December 2017
Cash $1000
Net !xed assets $27 000
Interest paid $250
Creditors $4000
Debtors $3500
Accumulated retained pro!t
$10 000
– end of 2017
Costs of goods sold $7500
Sales revenue $27 250
Short-term loans $1500
Overdraft balance $2000
Expenses $7000
Share capital $13 500
Dividends paid $2500
Long-term liabilities $5000
Stock of toy parts $4500
[Source: © International Baccalaureate Organization 2018]
(a) De!ne the term unique selling point/proposition (USP). [2]
(b) (i) Construct a fully labelled balance sheet for VT for the end of 2017. [5]
(ii) Calculate the acid test (quick) ratio for VT for 2018. [1]
(c) Explain one reason for VT to use the reducing balance method of depreciation. [2]
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