Georgia Martin has decided to study medicine at a university in Adelaide. She has arranged to stay

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Georgia Martin has decided to study medicine at a university in Adelaide. 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 $20000. She searches the Internet and comes across the following at Car Sales:

2012 Toyota Pris i-Tech Auto; 46,000 km, Automatic, Hatch, 1.8i/100W Hybrid $18,000 excl. Govt. Charges


Required

  1. a. Evaluate how useful this information is in arriving at a decision.
  2. b. List extra information that Georgia should ascertain before deciding whether to buy this car.
  3. c. Assume that Georgia does purchase the car, and subsequently finds that the car has mechanical problems that will require $2000 to fix. Discuss what she should do, given that she does not have enough money to pay for the repairs.

d. It is possible to wind odometers to suggest a car has travelled less distance than it really has. Discuss the ethics of this.

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Accounting

ISBN: 9780730382737

11th Edition

Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie

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