Running a business requires a great deal of capital. Capital can take different forms, from human and labor capital to economic capital. But when most of us hear the term financial capital, the first thing that comes to mind is usually money. Large corporations could not have grown to their present size without being able to find innovative ways to raise capital to finance expansion.

Required:

a. Identify the different sources of funds available to the corporation to finance their short and long-term projects. b. Analyse the advantages and disadvantages as well as risk associated with different sources of funds.