Question

Internal sources of capital are those that are
(a) generated through outsiders (b) generated through loans such as suppliers from commercial banks (c) generated through issue of shares (d) generated within the business

Answer 1

Answer:

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

Among the given options option (d) generated within the business is a correct answer.

Explanation:

Internal sources of funds can satisfy only few requirements of the business enterprise. Internal funds may be economical as compared to those raised through external sources. E.g of internal sources of capital are equity share capital and retained earnings.  

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Here are some more questions from this chapter :  

Under the factoring arrangement, the factor

(a) Produces and distributes (b) Makes the payment on

the goods or services behalf of the client

(c) Collects the client’s debt or account receivables

(d) Transfer the goods from one place to another

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The maturity period of a commercial paper usually ranges from  

(a) 20 to 40 days (b) 60 to 90 days (c) 120 to 365 days (d) 90 to 364 days

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Answer 2

Answer:

this answer is correct