(a)[8]
The Government has raised interest rates in an effort to reduce inflation. Identify and explain two ways that higher interest rates could affect FF.
(b)[12]
Thao and Liang need to raise finance to buy another business. Consider the advantages and disadvantages of these three possible finance sources. Recommend which source of finance Thao and Liang should select. Justify your answer. Retained profit. Issue of more shares. Bank loan.