MFI Company Ltd is a large manufacturing company in Tanzania that was created two decades ago. Over time, the Company obtained substantial loans from finance companies and commercial banks. The interest rate on the loans is tied to market interest rates and is adjusted every six months. Therefore, the Companys cost of obtaining funds is sensitive to interest rate movements. It has a credit line with a bank, just in case it suddenly needs additional funds for a temporary period. The Company has also purchased treasury securities that it could sell if it experiences any liquidity problems. The Company has assets valued at about TZS 10 billion and generates sales of about TZS 20 billion per year. Some of its growth is attributed to its acquisitions of some other firms. Due to its expectations of a strong East African economy, the Company plans to grow in the future by expanding its business and by making more acquisitions. It expects that it will need substantial long-term financing and therefore plans to borrow additional funds either through loans or by issuing bonds. The Company is also considering issuing stock to raise funds in the next year. The Company therefore closely monitors conditions in financial markets that could affect its cash inflows and cash outflows and thereby affect its value. Required: i. Explain how might venture capital (VC) facilitate the Companys expansion? ii. Explain on the potential financial risks facing the Company and the appropriate strategies it may apply to address them.