HomeStyle Furnishings is a newly established domestic company specializing in crafting bespoke furniture pieces. It is a privately held company co-founded by Jane Mwale and Mark Malambo. Jane, with her background in interior design, oversees product design and customer relations. Mark, a skilled carpenter, manages the manufacturing process and ensures product quality. The company takes pride in its commitment to sustainability, using locally sourced materials and eco-friendly production practices The company has also quickly gained recognition for its high-quality craftsmanship and unique designs. HomeStyle Furnishings is poised for growth and expansion, with increasing demand for its artisanal furniture pieces. It is at a critical juncture, as it seeks external financing to fuel its growth and expansion plans. The company would like to expand production capacity to meet the growing demand for furniture by investing in additional machinery, equipment, and facilities to increase its manufacturing capabilities at a cost of k2,000,000 kwacha. To support this expansion, the company is considering external financing options. While both equity and debt financing are on the table, there are compelling reasons why debt financing might be the more advantageous choice. The following are the other details of the company: Ownership Structure Jane Mwale: 60% ownership Mark Malambo: 40% ownership Financial Situation As of the present, HomeStyle Furnishings has accumulated retained earnings worth k500, 000. Additionally, the company holds a 5 year loan with a maturity date in six months. REQUIRED: i) Discuss what form of business HomeStyle Furnishings is and highlight five (5) advantages of this business structure. (5 marks) ii) Discuss the reasons HomeStyle Furnishings would Choose Debt Financing over Equity financing (5 marks) iii) What would be the underlining reasons HomeStyle Furnishings would choose equity financing over debt financing instead (5 marks) iv) If a world renowned international furniture company would like to take over HomeStyle Furnishings, what challenges would this company face in ensuring a successful take over (5 marks)