Your friend Rob is from WA and he wants to start a business of his own. He is thinking of buying a Bakery in Melbourne. The shop has been there for several years but has not been a great success. Rob does not have sufficient savings and he may have to borrow a large amount of money to finance the purchase. 

 

As you are an accounting student, you have been asked to advise the following: 

a. How can he raise the required finance? What security do you think he will need to provide?

b. How and what accounting information will assist Rob in making decisions in purchasing the business? What non-financial information should he be requesting?