KDP Co. is planning to expand its business to global market to enlarge its market share and to build a global brand. The marketing manager is proposing to penetrate the global market by setting up its own subsidiary in the foreign country. The shareholders are interested with the plan and keen to know if the company has sufficient financial resources to support the plan.

a) Briefly explain the TWO (2) major sources of finance that can be adopted by KDP Co. (5 marks)

b) Based your answer in (a), list out ONE (1) type of fund which is suitable to finance this big project that is going to generate synergies for KDP Co. in the future years. (2 marks)

c) Discuss in details the THREE (3) types of the fund mentioned in (b). Support your answers with an appropriate example for each type of fund. (18 marks)