Hi, regarding the "L'Oreal and The Body Shop" Exam Practice Question, the section mentioning"...because Nestlé (a key Stakeholder in L'Oreal)..." seems a bit off in that context. Perhaps it is a typo, and the person who created this Exam Practice...
External growth methodsDear Paul, Thank you kindly for your quick response and clarification, to me and to students in the text. Always grateful and appreciative for your co-creative spirit. Best wishes for the New Year, and the upcoming M26 exams. Lee
Efficiency ratios (HL)Dear Kristina In this context, variable costs and direct costs are indeed used interchangeably. The IB accepts alternative/varying definitions and does not prescribe specific definitions from any publication, so long as students demonstrate...
BMT 14 - Contribution (HL only)Dear Libby There is no need for students to show the formula - using the correct numbers suggests the student knows the correct formula. There is clarification of this matter in FAQ 4
3.1 Introduction to finance - role of financeDear Paul, I have a question about the quantitative questions in the external exams. Do students have to write the formula then the completed formula and then the answer with units to get full marks for working? E.g....
3.1 Introduction to finance - role of financeHi, one more comment regarding this "costs" terminology, for contribution pricing method, your book states: "setting a price based on the direct costs of producing a product" whereas InThinking states "pricing method that involves setting the price...
BMT 14 - Contribution (HL only)Dear Kristina Many thanks for the suggestion. I have included this as Top tip 3 above. With best wishes
Pricing methodsHi Paul, For contribution pricing, as I am teaching 1st year units 1, 4 and 3 (in this order), break-even analysis appears for the 1st time in this unit. It would be great just to add note for teachers, that if they cover syllabus not linearly,...
Pricing methodsDear Lee Thank you for raising this question. The confusion is understandable and worth clarifying. While external sources of finance can broadly include both share capital and loan capital, the gearing ratio focuses specifically on long-term...
Efficiency ratios (HL)
Paul
Site authorDear Educardo Thanks for your message. The text does indeed state that Nestlé is a key shareholder (and therefore stakeholer) in L’Oréal’s (as it holds around 20% of L’Oréal’s shares, making it one of the company’s largest stakeholders)....
External growth methods