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Question
Multiple Choice Question:
Internal sources of capital are those that are ______
Options
generated through outsiders such as suppliers
generated through loans from commercial papers
generated through issue of shares
generated within the business
Solution
Internal sources of capital are those that are generated within a business-for instance, by selling surplus inventories, collecting bill receivables, and reinvesting profits. Funds thus obtained are said to have been generated through internal sources of capital.
Hence, the correct answer is an option generated within the business.
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