The Software Developer Company name Criff Corporation located in Berlin, Germany with 10 employees has a total income of $2,000,000.00 for the first year that exceeded 100% base on the expected income analysis.
The board of directors decided to have another investor to expand the business because of the market demand to support their clients and to create more product to offer in the online market, In able to compete to other companies. And Because of the growing sales of the company they need 5 IT Developers to have a good productions and support for the products. The expected amount needed is $2,000,000 to cover all the expenses including annual salary, facilities and materials.
Questions: If you are the head of finance 1. how you will assess the capital needs? 2. How will you apply the financial environment key components? 3. What is the possible risk in having the investor?