Amir and Carla are business partners．They own a luxury hotel which operates in a niche market． The business has a short hierarchical structure．Amir and Carla use Herzberg＇s theory of motivation to keep their 5 employees well motivated．Amir and Carla are considering opening another hotel in a different city．They will need to identify a suitable source of finance if they decide to expand． Secondary market research can be used to help a business decide whether it should expand． Explain two sources of finance Amir and Carla could use if they decide to expand. Source 1: Explanation: Source 2: Explanation: .......................................................................................................................................
Exam No：0450_m25_qp_12 Year：2025 Question No：1(d)
Answer:
Award 1 mark for each relevant source of finance [max 2].
Award 1 mark for each relevant reference to this business [max 2].
Award 1 mark for each relevant explanation [max 2].
Points might include:
- Retained profits [k] from the hotel [app] as does not need to pay it back [an]
- Bank loans \([\mathrm{k}]\) to obtain a large amount of money/varying length of time to repay/quick to arrange [an] for the luxury service [app]
- Own(er) savings [k] from the 2 partners [app] as may be readily accessible/no interest to pay [an]
- Crowdfunding \([\mathrm{k}]\) as no interest to pay [an]
Other appropriate responses should be credited.
Award 1 mark for each relevant reference to this business [max 2].
Award 1 mark for each relevant explanation [max 2].
Points might include:
- Retained profits [k] from the hotel [app] as does not need to pay it back [an]
- Bank loans \([\mathrm{k}]\) to obtain a large amount of money/varying length of time to repay/quick to arrange [an] for the luxury service [app]
- Own(er) savings [k] from the 2 partners [app] as may be readily accessible/no interest to pay [an]
- Crowdfunding \([\mathrm{k}]\) as no interest to pay [an]
Other appropriate responses should be credited.
Knowledge points:
5.1.1.1. The main reasons why businesses need finance, e.g. start-up capital, capital for expansion and additional working capital
5.1.1.2. Understand the difference between short-term and long-term finance needs
5.1.2.1. Internal sources and external sources with examples
5.1.2.2. Short-term and long-term sources with examples, e.g. overdraft for short-term finance and debt or equity for long-term finance
5.1.2.3. Importance of alternative sources of capital, e.g. micro-finance, crowd-funding
5.1.2.4. The main factors considered in making the financial choice, e.g. size and legal form of business, amount required, length of time, existing loans
5.1.2.5. Recommend and justify appropriate source(s) of finance in given circumstances
Solution:
Download APP for more features
1. Tons of answers.
2. Smarter Al tools enhance your learning journey.
IOS
Download
Download
Android
Download
Download
Google Play
Download
Download