Business 7115 · O Level · Business finance: needs and sources

Business finance: needs and sources — practice question

(a)[8]

Explain how FO could use one internal source and one external source of finance during its expansion.

(b)[12]

Consider the advantages and disadvantages for FO of distributing its products through a wholesaler, a retailer or directly to the customer. Which channel of distribution should FO use? Justify your answer.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Retained profits - no interest or repayment is due - keeps FO's expenses down

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