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XYZ is a successful cake manufacturer and wishes to expand the business to create additional...

XYZ is a successful cake manufacturer and wishes to expand the business to create additional confectionary items. The expansion will require the purchase of a further manufacturing facility, investment in machinery and the hiring of more staff. The CEO and CFO are confident that the diversification will be a success and are discussing ways to raise funding for the expansion and are debating between dept funding and funding.What are the advantages and disadvantages of each approach?

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