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John Moffat.
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- May 13, 2018 at 11:23 pm #451759
Sir there is a past paper question which states Discuss the factors that Zigto Co should consider when choosing a source of debt finance
Sir as far as factors that Zigto Co should consider when choosing a source of debt finance are concerned there are 2 different topics stated in BPP book which may meet the requirement but I am confused that which 1 is more appropriate
The first one is on pg 238 (BPP study text current edition) which states the following factors
Availablity
credit rating
amount
duration
fixed or floating rate
securityAnd the other one is on page 319(BPP study text current edition) which states the following factors
Term of finance
fexibility
repayment terms
cost
availability
effect on gearingSir which answer is more appropriate/meet the requirement
May 14, 2018 at 6:34 am #451779They are all appropriate (and most of them are saying the same thing using different words). The examiner gives marks for all valid points and never expects you to list all the points. Looking at the marking schemes will give you an indication of how many points are expected for the marks.
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