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 answers. Each question should be assessed critically and rationally. References from books