ICANBusiness, Management and FinanceIntroduction to Finance and Financial Markets2021

QUESTION 1 Adekunle & Sons Limited is a medium-sized manufacturing company based in Lagos, Nigeria. The company produces consumer goods and has been in operation for fifteen years. The Board of Directors recently held a strategic meeting where the Managing Director, Mr. Tunde Adekunle, expressed concerns about the company's funding structure and its understanding of the Nigerian financial system. The Finance Director, Mrs. Chioma Obi, was asked to prepare a presentation for the Board covering fundamental finance concepts and the structure of the Nigerian financial market. Required: (a) Explain FIVE functions of finance to Adekunle & Sons Limited, illustrating how each function is relevant to the company's operations. (10 marks) (b) Distinguish between the Money Market and the Capital Market, identifying THREE instruments traded in each market as they exist in Nigeria. (8 marks) (c) Briefly explain the role of the Central Bank of Nigeria (CBN) in the Nigerian financial system. (7 marks) (Total: 25 marks)

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