Paper 1 BUSINESS AND MANAGEMENT

M12/3/BUSMT/HP1/ENG/TZ0/XX

22125011

BUSINESS AND MANAGEMENT
HIGHER LEVEL
PAPER 1
Friday 18 May 2012 (afternoon)
2 hours 15 minutes
INSTRUCTIONS to candidates
 not open this examination paper until instructed to do so.
Do
 clean copy of the Business and Management case study is required for this examination
A
paper.

Read the case study carefully.

Section A: answer two questions.

Section B: answer the compulsory question.

Section C: answer the compulsory question.
 calculator is required for this examination paper.
A

Clean copies of the Business and Management formulae sheet and discount tables are required for this examination paper.
 maximum mark for this examination paper is [80 marks].
The

2212-5011

7 pages
© International Baccalaureate Organization 2012

–2–

M12/3/BUSMT/HP1/ENG/TZ0/XX

SECTION A
Answer two questions from this section.
1.

(a)

General Ron Meiri was autocratic (lines 8–9). Identify four key features of an autocratic leadership style.

[4 marks]

(b) “The organizational structure of the UWP Mission was tall” (lines 9–10).
Explain one advantage and one disadvantage of this type of structure.

[4 marks]

(c)

Analyse the appropriateness of a bank loan as a source of finance for
Kos Palouk’s new lorry (lines 129–130).

[7 marks]

2.

(a)

Loyka’s economy is mainly in the primary sector (line 1). Briefly describe the nature of business activity in this sector.

[2 marks]

(b) Outline one reason why Kos Palouk does not need to do any additional marketing at the UWP Mission.

[2 marks]

(c)

Using information from Appendix 5a,

(i)

calculate the net profit margin and the gross profit margin for Kos Palouk from his current operation (Option 1).

[2 marks]

(ii) calculate the net profit margin and the gross profit margin for Kos Palouk from his forecast operation (Option 2).

[2 marks]