Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ishika after acquiring a degree in Hotel management and BusinessAdministration, Took over her family food accession Company ofManufacturing pickles, Jams and squashes. The business had

Ishika after acquiring a degree in Hotel management and BusinessAdministration, Took over her family food accession Company ofManufacturing pickles, Jams and squashes. The business had beenestablished by her great grandmother and was doing reasonably well.However, the fixed operating costs of the business were high and thecash flow position was weak. She wanted to undertake modernisation ofthe existing business to introduce the latest manufacturing processes anddiversify in to the market of chocolates and candies. She was veryenthusiastic and approached to a financial consultant who told her thatopproximately Rs.50 lakh would be required for undertaking themodernisation and expansion programme. He also informed hir that thestock market was going through a bullish phase.i) Keeping in mind. the above considerations, indentify the source offinance that should not be chosen by Ichila for financing the mod-ernization and expression of her food processing business. Giveone reason in support of your answer.ii) Explain any two factors, a part from those stated in the above situa-tion, which she should keep in mind while taking this decision.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Risk Management And Financial Institutions

Authors: John Hull

1st Edition

0132397900, 9780132397902

More Books

Students also viewed these Finance questions