Which of the following should not be an accounting package feature, when considering for Small- Business?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Not Free and open source
Note: The given answer is as per the official NTA Answer Key. For this question, Option (1) and Option (2) could also be possible answers, as explained below.
A small business needs an accounting package that is cheap and simple to install and use. Accounting packages are of three kinds: ready-to-use packages, which suit small businesses with standard needs; customised packages, which are standard packages altered to the user’s special needs and suit medium and large businesses; and tailored packages, which are built for one organisation and suit large businesses with many users. Low cost also matters, which is why free and open-source packages appeal to small businesses.
Option (1) Tailored — Should also be correct, though not the answer given by NTA. A tailored package is written for one large organisation; its cost and complexity do not suit a small business.
Option (2) Customized — Should also be correct, though not the answer given by NTA. Customising a package to special requirements costs money and is meant for medium and large businesses.
Option (3) Not Free and open source — Correct. A paid, closed package adds licence costs that a small business would rather avoid.
Option (4) Ready to use — Incorrect. A ready-to-use package is the very kind suited to a small business: it is cheap, easy to install and needs little training.
Advice for the exam: When more than one option is correct, mark the one that answers the question most completely, here the option on cost, which is the first concern of any small business. If NTA’s provisional answer key marks a different option, challenge it during the answer-key challenge window, giving proper reasoning. NTA does revise its key when a challenge is well justified, so a sound challenge can raise your marks.