KLE is growing. With this growth, Ken feels he is so busy getting new customers and keeping up with servicing his current customers that he has little time to determine what policies he should create so that the business follows good financial practices. He is mostly concerned about ensuring he develops a good credit rating as he believes the next phase of the company could require financing. Ken is also concerned with ensuring cash flow is managed well. He knows he has customers that pay on credit but is not sure if they are paying on time or if any customers are long overdue.

1. (6 marks) Describe three practices Ken must do to ensure he develops and maintains a good credit rating.

2. (4 marks) Describe two practices Ken must do to ensure that accounts receivables are being collected within the time allowed.

Ken is ready to grow his business. He is mostly concerned about the existence of a market for him to grow his business. He is also concerned with how he will finance his business. He believes he will need an additional $50,000 in cash for this next phase.

1. (5 marks) Describe what Ken should do to conduct a market feasibility study for his business. Include in the description both quantitative and qualitative analyses. Make sure you do not generally describe a market feasibility study but describe how that study would be specifically adapted to Kens business.

2. (5 marks) Describe three different sources (excluding love money) and 2 types of financing that will be available to Ken.

3. (5 marks) Identify which source and type of financing you believe would be right for Ken and provide 2 reasons to support your answer.