Which of the following is/are internal source(s) of finance? (2024)

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A

Equity share capital

C

Retained earnings

D

All of the above

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Solution

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Correct option is C. Retained earnings

Internal sources of finance refer to money that comes from within a business. There are several internal financing methods that a business can use including, retained profit and selling assets. On the other hand, share capital and debt funds are external sources of funds because they are raised from outside the business.

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Which of the following is/are internal source(s) of finance? (2024)
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