(iv) Write a report to the Managing Director of Organic Services Ltd. addressing each of the following in the context of financial management:

1. Identify and discuss two sources of medium-term finance that may be available to Organic Services Ltd. to finance medium term projects. (4 marks)

2. Effective cash and inventory management can help ensure Organic Services Ltd. have sufficient cash flow to meet its short-term debt obligations and operating expenses. Advise on the cost/benefit trade-offs of holding different levels of cash and inventory in a business. (8 marks)

3. It is common practice to link managers bonuses to value creation. However, not all companies monitor and control managers behaviours and in some cases agency problems can arise. Briefly discuss agency problems and possible mechanisms to overcome such problems. (4 marks)