Practise choosing external finance sources, defining them accurately, and judging how borrowing or investors affect business decisions.
IKEA is a well-known home furniture retailer with stores throughout the world. It was started in 1943 by Ingvar Kamprad when he was given some money by his father for doing well at school. He wanted to produce furniture at a price that people could afford to buy.
He realised that transporting furniture to customers was difficult as goods were often damaged. He developed flat packs to avoid damage. A flat pack contained all the materials needed to self-assemble a table, a chair or a bed.
All IKEA stores are run as franchises.
Which one of the following is an advantage to a business of using venture capital?
Select one answer.
It decreases access to other sources of finance
It keeps ownership in the business
It improves public relations
It can receive expert advice
D