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Student's Book Form Five

4. Suppose your friend Sofia owns a medium-sized business and needs capital to
fund various operations. She consulted you as an expert in the aspect of financing
medium-sized businesses. Identify and advise her on internal sources she can
opt and explain advantages and disadvantages of each to her.

FOR ONLINE READING ONLY
5. Baraka and Musa completed form IV at Marlex Secondary School. They were
not successful selected for the Advanced Secondary Education; therefore, they
jointly established a medium-sized business of selling second hand clothes
in Mwanza region. unfortunately, the business has run bankrupt because of
insufficient working capital. Which source of finance would you advise them
to apply for and why?

6. CHJ owns a small business for almost ten years. He used to retain profit obtained
from his business since commencement. However, his ambition is to upgrade
the business to a medium-sized one. As an expert in Business Studies:
(a) Explain why CHJ wishes to upgrade his business.
(b) What potential benefits of the source of financing opted by CHJ to upgrade?

7. Assume you have received secured loans several times from commercial banks
to support your business. Describe the challenges you usually encounter when
using this financing approach.

47 Business Studies for Advanced Secondary Schools

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