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Tamil Nadu Board of Secondary EducationHSC Commerce Class 11

Multiple Choice Question: Internal sources of capital are those that are ______ - Commerce

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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

MCQ

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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Meaning and Nature of Business Finance
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Chapter 19: Sources of Business Finance - Exercises [Page 200]

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Samacheer Kalvi Commerce [English] Class 11 TN Board
Chapter 19 Sources of Business Finance
Exercises | Q I. 2. | Page 200
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