Based on the sustainability efforts have achieved by Starbucks, students are required to advise a local entrepreneur
Question:
Based on the sustainability efforts have achieved by Starbucks, students are required to advise a local entrepreneur who owns a coffee farm growing rare Liberica coffee bean in Johor since 2009 in financial perspective. The owner is interested to follow the efforts done by Starbucks to be committed to UNSDGs as well as expecting to increase coffee bean yields. Taking the example of the successful investment, Root Capital, a financial institution had provided UCCEI, a coffee farm in $300,000 as initial capital to expand the business. Assume that the local company requires RM800,000 – RM 1.5 million for the farm development.
1. Student are required to survey TWO (2) business loans that are designed to support financing capital for agriculture sectors. These business loans can be a good way to fulfil short-term cash needs and fund business expansions. Summarize the bank loan features and requirement in tabular form; eligibility, financing limit, tenure, interest rate, collateral (if required) and others in a table.
2. Students are required to compare both business loans in terms of interest charged and estimated monthly instalment. Show the calculation for interest charged and estimated monthly instalment and decide which business loan is a good fit for the business funding.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill