(a)[8]
Explain, with an example, one reason why VP might need: • short-term finance • long-term finance.
(b)[12]
Using Appendix 3 and other information, assess how the following three changes in country Z could affect VP. Which change is likely to have the greatest effect on VP’s profits? Justify your answer. • Increase in interest rates. • Depreciation of country Z’s exchange rate. • New legal controls requiring all restaurants to list the ingredients in their meals.