Question 1 Short answer-Theory (10 marks) a) With reference to the definition of Assets in the Conceptual Framework, describe why Machinery satisfies (meets) the definition of an asset. State the definition used and the reasons Machinery satisfies (meets) this definition. (2 marks) b) For the four scenarios described below, indicate the business structure each one is likely to take (4 marks) - sole trader, partnership or company (public or proprietary) and why. (i) Julie and Peter wish to start a business selling jewellery on the internet. They are concerned about the legal issues (for example, their personal liabilities) for this business once they start trading. (ii) Christina has just commenced a mobile car wash business by herself. (iii) Two brothers, Bob and Rob, have struggling independent businesses as builders and wish to combine their businesses into one so that they can share resources and take more holidays. (iv) Six engineers wish to set up a business developing solar and wind energy. They want to be able to raise capital by issuing shares to the public. c) Explain 'digital disruption' to business and how it differs from 'business disruption'. (2 marks) d) Explain the difference between a business transaction and a business event. Use examples to illustrate this difference. (2 marks) O