Answer: Do your own homework
Explanation:
It’s easy
This consideration is related to the socio cultural environment:
a.) A new business decides to begin with the city its owners live in
since they are familiar with the local geography and tax issues.
Explanation:
The socio cultural environment one is familiar with influences them in many ways.
This also includes their choice of place for where they will start the business simply because they know that domain much more and it will be easier to be effective in there.
This is the reason that people are often told to be in their familiar turf.
The new business will be able to use its full contacts and have an insight on what works and what doesn't because they operate from their own area.
Answer:
Option C Not recoverability test but fair value test
Explanation:
The reason is that the standard on impairment IAS 36 Impairment of Assets says that the assets with indefinite life must tested for impairment every accounting year end. The test only includes whether the fair value of the asset has been decreased or not. This test is helpful by asking questions that asks about the decrease in the life of the asset due to a new legislation, the performance of the asset is fallen (oil is less extracted now than before because the oil is not reachable), etc. The standard does not permits to use Recoverability test as it will come later once the company is sure that the asset fair value has been decreased.
The effective interest rate is calculated through the equation,
ieff = (1 + i/r)^r - 1
where ieff is the effective interest, i is the nominal interest, and r is the number of 15 weeks in a year. Every year, there are 52 weeks. Thus, there are 3.467 15-weeks approximately. Substituting this into the equation,
ieff = (1 + 0.04/3.467)^3.467 - 1
ieff = 0.04057
ieff = 4.057%
