Apply cash flow principles and select an example that does not represent a sunk cost.

SENWES Ltd paid R$800000$ to a market research company to research the proposed new financial product for small$-$scale farmers.

BMW PLC invested R$10000000$ in imported parts used in the assembly of electric vehicles at the beginning of production of these vehicles.

Big Pharm Ltd paid R$100000$ to a legal firm for the protection of intellectual rights of the food$-$and$-$mouth vaccine it developed.

Solar Galore Ltd spent R$5000000$ on research and development relating to the latest technology used in solar inventors. $(2)$

Select an alternative that is not a reason why stakeholders can influence the future strategies of an organisation.

The organisation is in existence for more than ten years and is in its maturity phase.

The organisation has a large institutional shareholder that expects high returns from their investment.

The company has cash flow problems and needs an overdraft facility or loan from its bank.

The main customer of the organisation expects special discounts. $(2)$

You observed the following at a company you recently started a new job at:

All staff have access to a wide range of information including details of client accounts, to enable good client service.

The organisation has a graduate program, whereby they offer bursaries to students and then employ them as trainees once they have completed their studies.

A free annual holiday is given to all directors, and this is not declared as it is not in the form of a cash payment.

Sometimes, but not very often, if there is a large expense the company will capitalise it$,$ but only it if is over R$100000.$

Which of the above actions adhere to good corporate governance?

All of the above statements

Statements $(1)(2)$ and $(3)$

Statement $(1)$ and $(2)$

Statement $(2)$ only $(2$