What is the difference between internal and external sources of business?
Answers
Explanation:
Internal sources of funds are those that are generated within the business. External sources of funds include those sources that lie outside and organization, such as suppliers, lenders, and investors. Examples are accelerating collection of receivables, disposing of surplus inventories and ploughing back of profit.
Explanation:
wherein former covers those means which are generated within the business.
Conversely, the latter implies the sources of funds that are outside the business like finance provided by investors, lending institutions etc.
A firm can raise funds from different sources, wherein each source has distinct features. One should understand the basic features of the sources of finance so as to identify the best available source to meet out financial requirements. Here, in the given article we are going to talk about the differences between internal and external sources of finance.
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