Baltimore Co / Mizzen Co
Q2(b) additional information required
“– A breakdown of the revenue which has been generated from making each database available to other companies, and the dates when they were made available.”
Why need to obtain the breakdown of the database revenue for the due diligence review? the purpose?
Ask the Tutor ACCA AAA
Dec 13 Q2(b)
6y ago#1Per the Q:
"The company has built up SEVERAL customer databases which are made available, for a fee, to other companies for marketing purposes. This is the smallest revenue stream, accounting for
approximately 20% of Mizzen Co’s total revenue."
If you were buying Mizzen, would you not want to know how many is "several"? By definition several means two or more - but some might refer to 3-6 as "a few" and several as 7-10 (say).
Say there are 4 - would you not want to know if the revenue is split between them: 17%, 1%, 1%, 1% or 5%, 5%, 5%, 5%?
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