Internal And External Sources Of Finance For Tesco P4

Internal and external sources of finance for Tesco Internal sources of finance (Tesco) Retained earnings: A source of finance used by Tesco is retained earnings. Tesco re-invest a certain percentage of their end of the year profits back into Tesco, so they can improve it. Each year Tesco decide how much money they re-invest, this depends on the profit they make. Fixed assets: Another type of an internal source of finance for Tesco is fixed assets. Fixed assets are an asset that is not consumer or sold during the normal course of business, these are land, buildings, equipment, machinery, vehicles etc. These assets are very hard to convert into cash as it takes time to sell, Tesco would use these assets to fund future operations. Current†¦show more content†¦Business angels usually invest in companies around their home so they can check up on their investments. Government Grants: Tesco are Britain’s biggest supermarket and due to this they employ thousands. The government can give Tesco grants and money to invest back into Tesco. The government will benefit because if Tesco invest the money wisely they will have a successful year therefore the government will receive more tax. An example of Tesco receiving a government grant was in 2009 when they received  £5 million to open a new store in Glasgow. HP: Hire purchase is when a company or person lends out goods to companies for a short period of time, with added interest. Tesco could benefit if they were the company as they would lend out equipment, machinery, property and vehicles, as they would gain interest and also regain some of their investment into the product. Suppliers credit: Supplier’s credit is when a supplier offers the buyer the product they want on credit. This is like getting a loan of sorts as Tesco can pay at a later date. This benefits Tesco as they can order as much stock as they need even if they haven’t got the finances at that time. Sale and lease back: This is when Tesco sells something to a buyer such as equipment,machinery etc and the buyer leases the product back to Tesco immediately. This benefits Tesco as they can use the product without being tied down to the product financially. To Tesco there is some tax benefits toShow MoreRelatedCorporate Strategy of Tesco4090 Words   |  17 PagesHistory P3 Business strategy P3 Corporate strategy P3 Company values P3 Value chain P4 Joint Ventures and Mergers and Acquisitions P4 PESTEL analysis P5 Competitors P7 Figure 1: Tesco’s main competitors P7 Figure 2: Ansoff matrix for Tesco’s marketing strategy P8 Figure 3: Tesco’s sub-bran poisition in the United Kingdom P9 Figure 4: Tesco’s competition in the UK P10 Figure 5: Tesco’s internal competition P10 Core competencies P11 Human Resource P12 Recommendations P13 ConclusionsRead MoreBusiness Resources1984 Words   |  8 PagesBTEC Nationals – Unit: 2 Business Resources Assessor: Sam Ramsay | Internally Verified By: Michele Carman | Criteria Achieved | | Comments Against Target Grade: | | Assignment 1 | P1, P2, M2 | | Assignment 2 | P3, M1 | | Assignment 3 | P4, P6, M4, D3, D1 | | Important ResubmissionWhen you resubmit your assignment, you MUST ensure that YOUR CHANGES are shown in red. Failure to do this is likely to result in your work being missed and your original grade standing. | Student Declaration:By