Advise outdoor living ltd on the method of finance

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Outdoor Living Ltd., an owner-managed company, has developed a new type of heating using solar power, and has financed the development stages from its own resources. Market research indicates the possibility of a large volume of demand and a significant amount of additional capital will be needed to finance production.

Question 1: Advise Outdoor Living Ltd. on:

(a) the advantages and disadvantages of loan and equity capital

(b) the various types of capital likely to be available and the sources from which they might be obtained

(c) the method(s) of finance likely to be most satisfactory to both Outdoor Living Ltd. and the provider of funds.

Reference no: EM132639777

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