1. Most companies invest a significant amount of time and resources into trying to reach decisions on how to finance a business to achieve the optimum finance mix. Finance decisions coupled with strategic planning, marketing, and organizational design can be critical aspects of the future success or failure of a business. Critically evaluate the internal and external short-term sources of finance available to one of the three companies in the case study in relation to working capital, cash flow, and risk. 
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3. Required 
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5. You are required to prepare a memo on the topic of 'Financing a Business', addressing the following areas: 
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7. 2a. Using evidence from a range of sources, critically evaluate the main types of internal and external short-term finance available to listed companies, and use numerical examples to help illustrate key aspects eg cost, risk, impact on cash flow, and working capital. Reach a final conclusion, basing your decision on what you judge to be the most important factors, and justify how you have made your choice. 
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9. 2b. Select one source of short-term finance used by one of the companies in the case study, to explore how it affects the interests of existing stakeholders. Consider a variety of stakeholders' viewpoints. Where possible reconcile opposing views by presenting a final line of argument.

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2a Internal shortterm sources of finance are those that are obtained within the company such as through the use of retained earnings the sale of assets or drawing down on credit lines External shortte... View the full answer