You plan to start your own company after graduation from Wawasan Open University. You decide that it is now time to invest in the required production facilities so that your small business can take off. However, you need financing from institutions and/or individuals to undertake the required investment. You dig out your business plan to review it and realize that, to present a strong case to convince potential investors, you need answers to the following questions:

1. Using an appropriate diagram, explain how Financial institutions participate in the financial markets as well as transfer funds between suppliers and demanders as part of your structure of investment process.

(15 marks)

2. Discuss any TWO (2) types of investment are relevant for you as a start-up company in Malaysia. Provide reasons and realistic explanations.

(10 marks)