1 · Business organization and stakeholders
stakeholder · limited liability
U1-Q1 · 2 marks · points
Which decision most directly addresses both access and maintenance?
Answer and reasoning · Réponse et raisonnement
Keep a basic affordable meal and test optional products to support the fund.
U1-Q2 · 4 marks · points
Explain the mechanism or reasoning in this original case: A school café wants affordable meals and enough surplus to maintain equipment. Different objectives can change what counts as a good decision.
Answer and reasoning · Réponse et raisonnement
A price rise may support the café's equipment fund but reduce access for low-income customers. A tiered offer could preserve a basic affordable meal while testing demand for optional products.
- Accurate relevant concept (1)
- Specific evidence from the case (1)
- Connected reasoning (2)
Profit is not the only business objective. Do not assume a social enterprise has no need for revenue. / Evaluate growth using costs, control, culture and stakeholder effects, not sales alone.
2 · Human resources and motivation
delegation · motivation
U2-Q1 · 2 marks · points
Which change most directly responds to the complaint?
Answer and reasoning · Réponse et raisonnement
Delegate suitable decisions with training and clear responsibility.
U2-Q2 · 4 marks · points
Explain the mechanism or reasoning in this original case: A manager offers bonuses, but staff complain that their work has no autonomy. Money can matter without explaining every source of motivation.
Answer and reasoning · Réponse et raisonnement
Giving experienced staff responsibility for ordering stock can improve autonomy and speed. Training and clear limits reduce ordering mistakes. Compare delegation with tighter supervision when new workers need support.
- Accurate relevant concept (1)
- Specific evidence from the case (1)
- Connected reasoning (2)
Do not identify a leadership style as universally best. / HL also examines corporate culture and employee relations; SL students should not be assessed on those extensions as mandatory content.
3 · Finance, accounts and appraisal
cash flow · liquidity
U3-Q1 · 2 marks · points
What is closing cash in this example?
Answer and reasoning · Réponse et raisonnement
800, despite a negative net cash flow in the period.
U3-Q2 · 4 marks · points
Explain the mechanism or reasoning in this original case: A business reports profit but cannot pay next month's suppliers. A credit sale can raise recorded revenue before the cash arrives.
Answer and reasoning · Réponse et raisonnement
Opening cash is 2,000, cash receipts 3,000 and payments 4,200. Net cash flow = 3,000 − 4,200 = −1,200. Closing cash = 2,000 − 1,200 = 800. A forecast must also show when each payment occurs.
- Accurate relevant concept (1)
- Specific evidence from the case (1)
- Connected reasoning (2)
A profitable investment may have a long payback and a cash shortage before benefits arrive. / HL adds debt/equity ratios and budgets; do not infer these requirements from an SL cash-flow exercise.
4 · Marketing decisions
segmentation · primary research
U4-Q1 · 2 marks · points
Why is the customer-only survey weak for the new market?
Answer and reasoning · Réponse et raisonnement
It excludes non-customers whose needs may differ.
U4-Q2 · 4 marks · points
Explain the mechanism or reasoning in this original case: A survey of existing customers says everyone likes a product, but few new people buy it. The sample may exclude the people the firm wants to reach.
Answer and reasoning · Réponse et raisonnement
Before a launch, sample potential users as well as existing customers. Compare preferences with willingness to pay and actual trial purchases. Align product, price, place, promotion, people, process and physical evidence with the chosen position.
- Accurate relevant concept (1)
- Specific evidence from the case (1)
- Connected reasoning (2)
Large biased samples remain biased. Survey intention is not the same as purchase behaviour. / HL includes sales forecasting and international marketing: test assumptions and local context rather than transplanting one successful campaign.
5 · Operations and break-even decisions
contribution · margin of safety
U5-Q1 · 2 marks · points
How many units must be sold to break even in this model?
Answer and reasoning · Réponse et raisonnement
300 units.
U5-Q2 · 4 marks · points
Explain the mechanism or reasoning in this original case: A workshop considers a machine with higher fixed cost and lower variable cost. The best choice depends on demand and the risks of unused capacity.
Answer and reasoning · Réponse et raisonnement
Fixed cost is 6,000, selling price is 50 and variable cost per unit is 30. Contribution = 50 − 30 = 20. Break-even output = 6,000/20 = 300 units. At 400 units, margin of safety = 400 − 300 = 100 units.
- Accurate relevant concept (1)
- Specific evidence from the case (1)
- Connected reasoning (2)
Break-even assumes stable unit prices and costs and that output is sold. It does not prove demand exists. / HL adds lean quality, planning, contingency, R&D and information systems; evaluation must connect these to context.
6 · Social-enterprise action planning
social enterprise · contingency plan
U6-Q1 · 2 marks · points
Which measure checks financial viability most directly?
Answer and reasoning · Réponse et raisonnement
A cash-flow forecast with realistic receipts, payments and a reserve.
U6-Q2 · 4 marks · points
Explain the mechanism or reasoning in this original case: A repair cooperative reduces waste but faces volunteer turnover and uncertain cash receipts. A plan needs operating details as well as a social mission.
Answer and reasoning · Réponse et raisonnement
Start with an affordable repair service, a trained volunteer rota and a small working-capital reserve. Monitor repeat use, repair success, cash balance and volunteer retention; name triggers for changing the plan.
- Accurate relevant concept (1)
- Specific evidence from the case (1)
- Connected reasoning (2)
A five-year plan cannot assume unlimited funding or ignore staffing. / Use all provided resources and explain the sequence, trade-offs and risks, rather than listing disconnected recommendations.