Jin visits her god-parents farm - citrus fruits and grapes. There has been a collapse in the
Question:
Jin visits her god-parents’ farm - citrus fruits and grapes. There has been a collapse in the market price in relation to blood oranges and there are no pickers. She laments the waste and her god-parents tell her to pick what she likes the fruit has no value now and will only fall to the ground. Jin picks 10 bags of fruit and returns home to make her grandma’s recipe of blood orange marmalade - all she had to do was buy some new jars and sugar. At breakfast, her housemate exclaims ‘You should go into business and sell that sensational marmalade!’ Jin thought why not and rents a temporary stall at the farmer’s markets and with free tastings Jin is amazed that she sells all her jam on the same day and makes $500.
Jin uses the money to reduce her HECS, but is too busy with Swotvac and the exams to do more. She pondered that she might just be able to make a second batch in time before the end of the fruit season.
Required
Is Jin carrying on a business? Refer to the 8 factors established from Ferguson’s case to make your decision.
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Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor-Yi Tsay, Philip Old