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ib business management formula booklet IB Business and Management Higher Level Paper 2 Examination IB Business and Management www IBBusinessandManagement com 2 2 1 2 1 1 Option 1 x 0 6 x 0 4 Option 2 a 2 x 0 6 x 0 4 Option 2 b 2 x 0 6 x 0 4 Option 3 2 x 0 6 x 0 4 1 On financial grounds the best option is to purchase the building next door without a caf Option 2 a P a g e 5 IB Business and Management Higher Level Paper 2 Examination IB Business and Management www IBBusinessandManagement com Loan capital 0 Net assets Z Retained profit 8 Share capital 2 Short term borrowing 0 Stock 0 Total current assets 30 Total current liabilities 48 a i Define the term copyright 2 marks A copyright is legal right to protect and be the sole beneficiary from artistic and literary works which includes VTE computer software a ii Identify two disadvantages for VTE of operating as a private limited company 2 marks There are legal formalities and administration costs involved in establishing the business It can be quite difficult for shareholders Kate Kerr to sell shares b i Calculate the missing figures X Y Z and with those figures and from the financial information provided construct a complete balance sheet for VTE for 7 marks X 10 Y 48 Z 10 P a g e 8 IB Business and Management Higher Level Paper 2 Examination IB Business and Management www IBBusinessandManagement com Award 8 9 marks if the student s response meet the following criteria A response with accurate specific well detailed knowledge and understanding of relevant issues concepts and theories A response that uses appropriate terminology competently throughout the response A response that includes judgments and or conclusions that is well supported and underpinned by a balanced analysis Explicit references to the information in the stimulus material are made throughout the response P a g e 25 .

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