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Transcription of this question: 3.Speedy Delivery (SD)Speedy Delivery (SD) is a private limited company that delivers freshly cooked meals by bicycle.SD only delivers. Restaurants subcontract SD to deliver meals to customers who place ordersonline and expect quick and efficient delivery. SD has been operating profitably for two years.Currently, it has the highest market share in the city.SD is now facing two issues:It operates at 98 % capacity utilization. Recently, some restaurant owners complained to SDthat meals arrived late and cold to customers.The market for home delivered, freshly cooked meals is growing quickly and some new deliverycompanies have just entered the market.The CEO wants to address the delivery quality issues and the threat of competitors, two of whomrecently merged. He is considering an internal growth strategy involving investing in new electricscooters and employing more staff to deliver a greater number of meals more efficiently. SD mustraise a large sum of finance. Major shareholders are in disagreement regarding the intemal growthstrategy.The financial manager has provided some financial information.Table 1: Current informationGearing ratioCurrent ratioGross profit margin (GPM)Net profit margin (NPM)Return on capital employed (ROCE)Debtor daysCreditor days65 %0.920 %9%9060Table 2: Predicted retum on the investmentAverage rate of return (ARR)Payback period6%3.2 years[Source: International Baccalaureate Organization 2018](a)(b)(c)(d)Define the term market share.Explain one advantage and one disadvantage for SD of working at almost full capacityutilization.Explain one advantage and one disadvantage for SD of using an internal growthstrategy.Discuss two appropriate sources of finance for SD to purchase the scooters.[2][10]

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