George is a sole trader who owns a bicycle shop in a large town. The shop sells bicycles and cycling accessories. George wants to expand his business by offering a repair service to customers. George estimates that he'll need $2000 to rent, fit and equip the workshop and a further $1000 to buy inventories: total of $3000. George is considering asking his bank for a loan.
George's cousin, Winston, has offered to go into partnership with George. Winston would invest $2000 in the business. Winston is a car mechanic.

1) identify two disadvantages of external sources of finance.

2) outline two pieces of financial information that bank manager might want to know when considering George's application for a bank loan.

3) Explain two external sources of finance, other than a bank loan, that might George might consider for raising $3000

4) Do you think George should go into partnership with his cousin, Winston? Justify your answer.
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