Page 28 - BUSINESS STUDIES FORM 5

Student's Book Form Five

4. The internal sources of financing medium-sized businesses
that Sofia can opt are explained in the student’s textbook.

5. The source of finance that Baraka and Musa can apply
FOR ONLINE READING ONLY
is secured loans as a source of finance. This will help
them to increase their working capital because they will
get enough money. The money obtained can be used
for expanding the business and meeting other business
expenses.

6. Business Studies expert concerns:
(a) Some of the reasons for CHJ to upgrade his business
are the availability of a new market, the level of
capital, the advancement of technology, and a
favourable business environment.

(b) The benefits of the source of financing opted by CHJ
are explained in the student’s book.
7. Some challenges encountered when applying for
loans from commercial banks are long procedures and
formalities in application, unqualified collateral or
security, high interest rates charged by some commercial
banks, and a small amount of loan given compared to
what is demanded.

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