Business plays a vital role in the capital formation of a country and people consider it as the life blood of a growing economy. Therefore, it is very important to manage business effectively and efficiently. One of the major issues encountered by fund managers today is not just locating of funds but also their meaningful deployment of assets to generate maximum returns. Working Capital Management (WCM) is an important corporate financial decision since it directly affects the profitability of the firm. Based on the statement, you are required to: Question1 Explain how various sources of finance could help on achieving the effectiveness of working capital management in a company's operation. Further discuss on the relationship between risk and return that should be considered when deciding on which sources of finance should the company choose to bridge their financial gap. (50 marks) Question 2 Discuss the advantages and disadvantages on sources of finance and provide your recommendations on which source of finance is/are should the company consider improving the working capital management. (50 marks) (Total: 100 marks) Students are required to use and analyze literatures in order to support both of the nally Referencer from hooke 1. Paul Turner is single and has two children, Allen and Lee Ann, from his previous marriage. Allen lives with Paul and Paul provides more than half of his support. In the current year, Allen earned $300 of interest income and $5,000 working at a fast-food restaurant. Allen graduated from high- school in December 2018 and was not a registered student during 2019. Lee Ann lives with her mother, Wilma (Lee Ann lived with Wilma for all of the current year). Wilma provides more than half of Lee Ann's support. Paul pays "alimony" of $400 per month to Wilma pursuant to a divorce degree entered into in 2014. The payments are to continue until Lee Ann reaches age 18, when they will be reduced to $250. Paul uses the cash method of accounting and a calendar year for reporting. Paul's birthday is May 31, 1978. Allen's birthday is October 5, 2001. Lee Ann's birthday is December 1, 2005. Paul prefers to report any "kiddie tax" on his tax return. 2. Paul is employed as a nuclear engineer with Atom Systems Consultants, Inc. (ASCI). Paul's pay stubs indicate that he had $7,320 withheld in federal taxes, $4,978 in state taxes. He earned $80,000 of wages subject to employee Social Security taxes and Medicare taxes. ASCI has an extensive fringe benefits program for its employees. 3. Paul earned salary of $82,500 (before subtracting his 401(k) and flexible spending plan contributions and before adding any additional possible income items described in paragraphs 4-1 7, 11). He contributed $6,500 to his 401(k) account, and he contributed $2,600 to his flexible spending account. 4. ASCI paid $497 of whole life insurance premiums to cover Paul's personal whole life insurance policy. ASCI also paid health club dues of $825 to a nearby health club on Paul's behalf. 5. Taking advantage of ASCI's educational assistance program, during the fall Paul enrolled in two graduate engineering classes at a local college. ASCI paid his tuition, fees, and other course- related costs of $5,300.