Discuss the difference between a special-purpose financial report and a general-purpose financial report, and the nature of the users of each of these types of financial reports. Q 1. 7 Explain the basic differences between a sole trader (or single proprietorship), a partnership and a company. What factors need to be considered in selecting an appropriate structure for Darner’s landowning business? Exercise 1. 3 Information for decisions Renee Carter has decided to study medicine at a university in Queensland.
She has arranged to stay with a family on the north side of the city. In order to get to and from the university, she decides she will need to buy a car, costing a maximum of $10 000. She searches the classified ads in the local newspaper and finds the following advertisement which interests her: HONDA Ohio, 3-speed man sedan, mob, air con, tint winds, CD play, power steer, $9800 non, pH 3456 7890. Required A. How useful is this information in arriving at a decision? B. What extra information would Renee need before deciding whether to buy this car?
C. Assume that Renee does purchase the car, and subsequently finds that the car has mechanical problems which will require $2000 to fix. What should she do, given that she does not have enough money to pay for the repairs? Exercise 1. 4 Choosing a University Major You have just enrolled in a course in business at the Western University in Perth. There are several specialty areas, one of which you must choose -? accounting, business law, economics, finance, management, marketing information systems.
The choice you make is important as it will affect your true; hence, you must give careful thought to this decision. Required A. Identify two possible specialty areas in business that interest you. B. Set down your goals and personal preferences in selecting a business major. Identify the factors which will help you make this decision, and specify the factors which are most important to you. C. Establish a set of criteria which must be met before making a decision about your appropriate specialty area.