Answering 4-mark questions (DP IB Business Management) : Revision Note
Explain questions
In 4-mark explain questions, you need to make two points
These are typically an advantage and a disadvantage
Each of these points must be supported by evidence from the case study
They are typically marked as 2 + 2
Example
This example achieves 4 marks
Both an advantage and a disadvantage are given, achieving two marks for knowledge
Two references to the case study are given for both the advantage and for the disadvantage, achieving two marks for application
Case Study
Verde Flora specialises in selling rare and exotic plants, catering to collectors and gardening enthusiasts. The business has seen significant growth in online sales, but its recent cash flow forecast highlights a shortfall during the next quarter due to seasonal fluctuations in demand and rising import costs.
To address this, Verde Flora is considering several strategies: reducing its inventory levels, offering discounts to customers for early payments, and introducing new capital by securing an equity investor. Management is focused on maintaining its reputation for quality while ensuring sufficient liquidity to continue operations.
Explain one advantage and one disadvantage of offering discounts to customers for early payments at Verde Flora. [2]
Describe questions
4-mark describe questions also require you to make two points
These are typically two factors, limitations or reasons
Each of these points must be supported by evidence from the case study
They are typically marked as 2 + 2
Example
This example achieves 4 marks
Two limitations are given, achieving two marks for knowledge
Two references to the case study are given for both limitations, achieving two marks for application
Case Study
HealthyPets Products is a company specialising in eco-friendly pet food and accessories. The company has built a reputation for creating sustainable products that appeal to environmentally conscious pet owners. HealthyPets is planning to launch a new line of biodegradable pet food packaging that is designed to reduce waste while keeping the food fresh.
To ensure a successful launch, the company has decided to conduct primary market research. This includes focus groups with pet owners to gather opinions on the design and functionality of the packaging and interviews with pet store managers to understand their preferences for stocking sustainable products.
Describe two limitations of focus groups as a primary research method for HealthyPets.
Construct questions
These questions ask you to use data from the case study to complete a diagram such as a graph or chart
Marks are typically awarded for
Correctly labelled and accurately drawn trend lines
In a break-even chart, this could include the TR, FC and TC lines
Identification of key values
In a break-even chart, this may include the break-even point, break even revenue, margin or safety, area of profit or loss
Labelling of variables or axes
In a break-even chart, the x-axis should be labelled as 'units' or 'output', while the y-axis should be labelled as 'costs/revenue'
Example
This answer would achieve full marks
Both the x-axis and the y-axis are labelled correctly
The FC, TC and TR revenue are drawn accurately and labelled
The break-even point is annotated correctly
The margin of safety is indicated and labelled correctly
You've read 0 of your 5 free revision notes this week
Sign up now. It’s free!
Did this page help you?
