Sources of Internal and External Finance for Marks and Spencer

760 Words Jan 13th, 2018 3 Pages
It has a range of outlets over the world for it products. Mark and Spencer source of finance is both internal and external which are discussed briefly in this paper. The paper further discusses the use of budget as a means to exercise financial control.
Internal source of finance
The Corporation relies majorly on profits ploughed back for its internal sources. Ploughing back of profits means, reinvesting the profits earned in a trading for purchases of capital items as well as, expansion of business. The ploughed back profits are also used to fund the Corporation marketing strategies such us corporate social responsibilities and introduction of a new product.
Sale of assets is another source of finance for the Corporation. This is cash raised by selling it obsolete machines, equipment and business premises. Selling business premises is a decision arrived at out of preferences of Lessing premises in lieu of expanding operations. Money from the assets sold is used to open up branches in other countries as well as increase their product line up. The machines are sold either because they are underutilized or because they have become obsolete following technological innovations.
External sources of finance
Shares held by share holder form bulk of Mark and Spencer's…
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