15. Source based question

Question 1

What non accounting information business will consider for which kind of business to set up?

Answer 1

• owner/owners’ expertise
• nature of business
• capital commitment for initial set-up
• risk
• level of control desired
• lifespan
• transferability of ownership

Question 2

What non accounting information business will consider for which inventory to buy?

Answer 2

• nature of product
• types of storage
• customers’ preference

Question 3

What non accounting information business will consider for which customers to offer credit to?

Answer 3

• specific industry outlook
• economic outlook
• reputation of customers
• new customers’ history of repayment

Question 4

What non accounting information business will consider for which suppliers to buy from?

Answer 4

• local or overseas suppliers
• online vs brick-and-mortar suppliers
• after-sales service
• return policy
• warranty
• reputation of suppliers

Question 5

What non accounting information business will consider for which non-current asset to buy?

Answer 5

• purpose of non-current assets
• features of non-current assets
• customers’ review of non-current assets
• warranty

Question 6

What non accounting information business will consider to decide whether to bu y or rent non-current asset?

Answer 6

• Advantages and disadvantages of buying or renting