a) New ventures and a lot of SMEs risk losing their business operation in the name of 'finance gap' whicharises as a result of some information asymmetry that exists between lenders and borrowers. Theexistence of information may lead to adverse selection and moral hazard. Using practical examples,explain the terms highlighted.b) Discuss the term 'Venture capital financing'c) You have received an appointment to assist in the management of KFC Incorporated in its capitalrestructuring to be able to meet the global clientele it has for decades now. As a Corporate CountryDirector per your appointment, outline some major sources of debt financing that had help build thecapital structure of KFC to still be in fully operation and with more expansion across the globe.

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New ventures and a lot of SMEs risk losing their business operation in the name of 'finance gap' which arises as a result of some information asymmetry that exists between lenders and borrowers. The existence of information may lead to adverse selection and moral hazard. Using practical examples, explain the terms highlighted.

New ventures and a lot of SMEs risk losing their business operation in the name of 'finance gap' which arises as a result of some information asymmetry that exists between lenders and borrowers. The existence of information may lead to adverse selection and moral hazard. Using practical examples, explain the terms highlighted.

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter2: Developing The Business Idea

Section: Chapter Questions

Problem 6EP

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