Question

Internal sources of capital are those that are generated ______.

Options

• through outsiders

• through commercial banks

• within the business

Answer 1

Internal sources of capital are those that are generated within the business.

Explanation:

• The term "internal sources of capital" describes money made by the company itself, independent of outside loans or investments.
• These funds are obtained by the sale of excess assets, depreciation money, retained earnings, and profit reinvestment.
• By lowering interest rates and financial risk, they offer a reliable source of funding.