Please help me with Earthwear mini case chapter 4

	A Questionnaire for Documenting the Understanding of
	EarthWear Clothiers and its Environment
	Client Name: EarthWear Clothiers	Completed by:	Please Complete Questionnaire
	Entity and Environment Category: Nature of the Entity	Reviewed by:
	Year ended: 31 December 2014	Date:
Question	Risk Factors	Description/Response	Any Remaining Risk
1	What are the entity's major sources of revenue, including the nature of its products and/or services?	High quality clothing for outdoor sports, such as hiking, skiing, fly fishing	no	PLEASE ENTER YOUR ANSWERS ON THE QUESTIONNAIRE WORKSHEET. The fields in yellow will be filled automatically as you enter your answers on the Questionnaire. You may need to RESIZE the rows to display your answers.
2	Who are the entity's key customers?	EarthWear's customer database reaching 21.1 million people, and sales occurring through catalogs, retail outlets, and the internet. Approximately 7 million of whom were viewed as customers because they had made at least one purchase from the company within the last 24 months. In addition, a survey conducted by the company in seven countries during 2012 indicated that approximately 50 per cent of its customers were in the 35-54 age group and had median incomes of 62,000.	no
3	Who are the entity's key suppliers?	. All goods are produced by independent manufacturers except for most of its soft luggage, which is assembled at the company's facilities. During 2013 the company purchased merchandise from approximately 300 domestic and foreign manufacturers. In 2013, one manufacturer and one intermediary accounted for about 14 and 29 per cent of the company's received merchandise, respectively. In 2013 about 80 per cent of the company's merchandise was imported, mainly from Asia, (Bangladesh, China, India, Indonesia and Malaysia). The company will continue to take advantage of worldwide sourcing without sacrificing customer service or quality standards.	Yes. The USA and Italy have restrictive trade laws where companies get a certain degree of protection from the government when their markets are threatened. Political uncertainty in less-developed countries could affect EarthWear's sales activities in these countries.
6	What are the entity's major assets?	Please Answer This Question on the Questionnaire Worksheet	no
7	What are the entity's major liabilities?	Please Answer This Question on the Questionnaire Worksheet	no
15	Does the competitive industry environment present any risks for the entity? Identify any competitors.	The industry consists of a wide variety of manufacturers that sell products directly to customers or through retail stores, including department stores, specialty shops, and catalog companies. EarthWear's direct competitors include Eddie Bauer, Land's End, L. L. Bean, Patagonia, and Timberland. EarthWear competes primarily on merchandise value (quality and price), its established customer list, and customer service, including fast order fulfillment and unqualified guarantees	yes.
17	Do customer dynamics present any risks for the entity?	Please Answer This Question on the Questionnaire Worksheet	no
19	Do technological factors present any risks for the entity?	Please Answer This Question on the Questionnaire Worksheet	no
40	Is there high turnover of senior management, counsel, or board members?	Please Answer This Question on the Questionnaire Worksheet	yes