Explain one reason Mumtaz has always used internal finance to establish and expand its business - Edexcel - A-Level Business - Question 1 - 2018 - Paper 2

Mumtaz has always used internal finance primarily because it allows for greater control over the business without incurring additional debt. As a private limited company owned entirely by the Akbar family, this approach enables them to utilize the high sales revenue from their ready meals and retained profits effectively. With sales revenue of around £25m and a growing market segment in the ready meals category, internal finance helps Mumtaz avoid borrowing costs associated with external funding sources, such as interest payments.