Chapter 2: source and coverage limits

# SM2 source boundaries
Official source https://resource.cdn.icai.org/87996bos-aps2213-ch2.pdf . PDF60pages;concept3-45read. Originalfictionalcases/conceptreferences,notofficialquestions/answers/marks. May2026baseline,notMay2027substitution.
Page11 puts employees amongimmediatemicroissues though2/3/10defineexternalenvironmentseparatelyfrominternal. Caseboundaries explicit: firmcapabilityinternal, specificcustomer/supplierexternalmicro,broaderconditionmacro. Socio-demographic/economic/PESTLE headings overlap; classifycausalbasis,acceptreasonedalternatives.
Page36diagram separatestotalV-C,customersurplusV-P,firmmarginP-C;page38callsvaluecreationjustexcessoverprice. Suppliedframeworkdefinesallthreeandidentityratherthanlauderingwordingintoonewronganswer. Utility/willingness differsprice;unitmarginnotallunprovidedoverhead/taxprofit. Willow100=60+40;other70=40+30.
Page40says3behaviourdomainsbutlists4includingpost-decision. Casesfollowdescribedexternal/internal/decision/postprocesses,notcountclaim.Universalrationality/repeatpurchase/dissonancepatternsnotguaranteed.
PLC stagesdiagnostic,patterntime/profit/price/competitionnotuniversal;itemusefullifevscategorysalescycle.Currentchangesneedverifieddata. Experiencecumulativelearningvscurrentvolume; scale/redesign/technologydriversnotautomaticpermanentcostdecline. No numericalexperiencecurveinvented.
Forcesneedindustryboundary/role/strength/evidence;entryimpedesjoining,exitimpedesleaving; barriersnotimmunity. Currentcartel/retaliation/leaderpricedisciplinepassagesnotactionrecommendations.Nocollusionorunlawfulconduct. Attractivenessrelativefirmposition/resources/drivers,notabsolute guaranteedreturns.
Valuechainprimaryreceiving/transforming/distributing/marketing/servicevssupportacquisition/knowhow/HR/infrastructure;procurementprocessnotstock;linkagesnotisolatedcostcuts. KSFfocusedcustomerchoice/requiredcapability/sustainableadvantage,variesindustry/time;usual3-4notrigidcap. Landscapeevidencelegitimate/notsecret/privateplanretrievalormisinformation;annualreports/reviewsnotcompletecertainties.
CurrentPLI/tariffs/nationalpolicies,Indiarelativeage,Marutiexperience/currentbrands/technologyclaimsnotverifiedpresentfacts. Internationalmotives/planningdo notguaranteecheapresources/lowertradebarriers/success orverifyanycountrylaw. Noactualborrow/payment/entry/acquisition/customerdataretrieval/thirdpartycommunication/spend authorisedbyfictionalscenarios.
Private30D30P30T/sharedWillow10testMCQs/indicativecappedrubrics. NoFMpublicdeploy/main/G1/AuthFirestore/ledgerchanges. Noofficialbankcompletionclaim.