QUESTION THREE [20 marks] a. Finance is needed to set up the business, expand it and increase working capital (the day-to-day running expenses). Entrepreneurs almost always require starting capital to move their ideas forward to the point where they can start their ventures. It is therefore important, then, to understand what sources of financing exist at various stages of venture development. Debt Financing is one example of sources of business financing. Advice entrepreneurs in your local area on the advantages and disadvantages of debt financing

b. Serwalo wants to raise P60,000 of start-up capital from a venture capitalist rather than arranging a bank loan. To what extent do you agree? . Justify your answer citing examples in your own words