QUESTION THREE [20 marks] a. Finance is needed to set up the business, expand it and increase working capital (the day-t

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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 (10 marks)
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 (10 marks)