ACCA Performance Management (F5) Certification Practice Exam

What does primary data collection involve?

1. Using pre-existing studies and reports

2. Gathering data directly from new sources

3. Analyzing secondary market reports

4. Consulting expert opinions

The correct answer is: Gathering data directly from new sources

Primary data collection is fundamentally about obtaining information directly from original sources for a specific research purpose. This form of data collection involves engaging with new data that has not been previously collected or analyzed. This can include methods such as surveys, interviews, observations, or experiments, where the researchers gather firsthand information tailored to their specific research questions or objectives. The choice of gathering data directly from new sources aligns with the principle of primary data collection because it emphasizes obtaining unique, unprocessed information directly from the environment, individuals, or situations being studied. This approach ensures the data is relevant and specific, allowing researchers to capture current insights that might not be available through existing literature or studies. In contrast, the other options revolve around utilizing information that has already been compiled or analyzed by others, which is characteristic of secondary data collection. For instance, using pre-existing studies and reports or analyzing secondary market reports involves relying on information that has already been collected and interpreted. Consulting expert opinions, while valuable, typically depends on insights derived from existing knowledge rather than generating new data directly. Thus, the distinction lies in the direct engagement with new data sources, which is fundamental to primary data collection.