Business finance: needs and sources — practice question

To curb inflation, the Government has raised interest rates. Identify and explain two ways that a rise in interest rates could affect FF.

Thao and Liang need finance to buy over another business. Consider the advantages and disadvantages of the following three finance sources they could choose. Recommend which source of finance Thao and Liang should choose. Justify your answer. The three sources of finance are: - Retained profit - Issue of more shares - Bank loan