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 utilizes internal finance primarily due to its ownership structure and high sales revenue. As a private limited company owned entirely by the Akbar family, they can draw on retained profits without outside interference. This approach reduces borrowing costs since there are no interest payments involved. Additionally, the growth in revenue, approximately £25 million, allows the Akbar family to maintain greater control over the business, ensuring that funds are reinvested effectively for further expansion.