Sources of finance, financial documents, budget and pricing strategy of Tesco

PROJECT

TABLE OF CONTENTS
TABLE OF CONTENTS................................................................................................................2
CASE STUDY.................................................................................................................................1
1. Sources of finance of Tesco.....................................................................................................1
2. Examples of financial documents............................................................................................1
3. Budget employed by the company..........................................................................................3
4. Pricing strategy of the company..............................................................................................4
REFERENCES................................................................................................................................6

CASE STUDY
1. Sources of finance of Tesco
Every business requires finance for establishing as well as running the operations of
business successfully. it is the duty of financial managers to procure funds for the organisation.
They have to analyse different sources from which funds could be raised. it has to choose the
financial source that is most beneficial for the company. There are various sources of finance
available to company but, it is essential that most favourable source has been chosen by the
managers. Sources of funds used by the Tesco are
Equity
It is the most commonly used source for raising finance by the companies. Company can
raise funds from public by offering shares of the company which is holding in ownership in
proportion to the shares held. There are different classes of shares issued by Tesco (Bellavitis
and et.al., 2017). Company is not required to pay any fixed amount but only share in profits if
earned.
Bonds
Company can issue bonds for raising funds at fixed coupon rate. in this company is
required to pay interest every year. Tesco has also raised funds by issuing bonds of different
maturity period at different coupon rates.
Bank Loans
It is also highly used by the businesses for raising capital. Bank loans are granted on a
specified security or by creating charge against assets. Loans are provided after analysing the
financial performance and position and also the strength of the proposed project. Tesco raises
bank loans for meeting the working capital requirement of company
2. Examples of financial documents
Assets
Asset could be described as anything containing value or resource of the value which
could be converted in cash. Assets generate cash flows for the business. assets of every company
are listed over balance sheet and are netted against the equity and liabilities of company. Assets
of firm are divided in current as well as noncurrent assets. Current assets are those which could
be converted into cash quickly such as inventory, accounts receivables and cash equivalents. On
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