Produce First (First) needs to raise finance for the expansion of its fresh food business. It is considering two options: (a) a public issue of redeemable preference shares: and (b) a loan from Strategic Finance Ltd (Strategic). If it proceeds with option (b), Strategic requires First to provide security for the loan. First owns the land, buildings, plant and equipment and trading stock (food for resale). Team B discuss the advantages and disadvantages of option B including any issues of liability should First Ltd default on the loan.