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As you are about to finish your course of studies in Bachelor of Science in Administration (Accounting Option) from one of the prestigious universities in
As you are about to finish your course of studies in Bachelor of Science in Administration (Accounting Option) from one of the prestigious universities in Ghana, you decided to try your luck on employment by circulating your curriculum vitae (CV) around. As a result, the head of Strategy of ABC Ltd, Kumasi upon perusal of your CV asked you to start an attachment with the pending further consideration of your application for employment. On your assumption of duty, you gathered that ABC Ltd is an owner managed and operated SME Company located at Kumasi. It has developed new cassava planting machinery for market. It is believed that this machinery can save farmers labour costs and improve plant germination rate. Market research and the development of the machinery have been financed out of ABC Ltd's own resources so far. It is envisaged based on scientific market research findings that a large market demand will meet the initial introduction of the machinery into the market. Also, to sustain the anticipated demand, there is therefore the urgent need for considerable amount of additional capital to finance production and marketing of the machinery. Required: As part of your assignment as the new intern, the head of strategy requested you to advise ABC Ltd on the followings: a) Whether the product should be introduced into the market now, b) If yes which funding options should be used, c) Identify the various types of capital likely to be available and the sources from which they might be obtained from, d) the method(s) of finance likely to be most satisfactory to both ABC Ltd e) In your advise in (b) above you are to outline the advantages and disadvantages of debt (loan) and equity capital
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