Finance in Hospitality
Essay by Dayowumi • September 24, 2015 • Coursework • 18,123 Words (73 Pages) • 1,470 Views
Table of Contents
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Chapter 1…….......................... ....................................................................................5
1.0. Sources of Funding available to Business and Services Industries with
The Contributions Made by Various Methods of Generating Income for
A Large Chain of Restaurants. Introduction…………………............................5
1.1. Sources of Funding available to Business and Services Industries..................5
A. The Internal Funding……………………………………………......................6
1. Owner’s Own Money…………………………………………. .......................6
2. Family and Friends:……………………………………………………….........7
3. Retained Earnings:…………………………………………………………….8
B. The External Funding:……………………………………...............................8
1. Banks:……………………………………………………………......................8
a) Loan:……………………………………………………………. ......................8
b) Credit Cards:…………………………………………………….......................8
c) Overdraft:……………………………………………………...................... …..8
2. Trade Credits:………………………………………………….........................9
3. Crowd Funding:…………………………………………………....................10
4. Business Angels:………………………………………………......................10
5. Venture Capital………………………………………………….....................10
1.2: The Contributions Made by Various Methods of Generating Income for
A Large Chain of Restaurants…………………………………..........................11
1. Enhanced sale:…………………………………………………................................11
2. Cost Cutting:……………………………………………………................................12
3. Commission-based Business:…………………………………...............................12
4. Selling Spare Assets:……………………………………….....................................13
5. Letting/subletting:…………………………………………………............................13
1.2.1. Conclusion:…………………………………………………………….........................13
Chapter 2.………….....................................................................................................14
2.1. Elements of Cost, Gross Profit Percentages and Selling Prices for Product and Services: Marks & Spencer as Case Study………………………………….....................14
A. Element of Cost…………………………………………………………....................14
B. Gross Profit Percentages………………………………………………....................18
C. Selling Prices………………………………………………………….......................19
2.2 Methods of Controlling Stock and Cash in a Business and Services Environment..21
2.2.1 Stock or Inventory……………………………………………………………...............21
2.2.2. Inventory Management…………………………………………………….................21
A. Economic Order Quantity (EOQ)…………………………………………..............21
B. Reorder Point (ROP)…………………………………………………….................23
C. System of Inventory Control…………………………………………….................24
D. Stock-taking……………………………………………………………….................25
i. First -In, First-Out (FIFO)………………………………………………..............25
ii. Last-In, First Out (LIFO)………………………………………………...............25
E. Physical Control of Stock and Cash……………………………………... ............25
F. Importance of Cash………………………………………………………................26
G. Cash Control………………………………………………………………...............27
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