i. personal savings. ii. retained earnings iii. accrued taxes. Which of the items constitute internal sources of financing for companies?
i and ii
i and iii
ii and iii
i, ii and iii
Correct answer is A
Internal sources of finance are ways to use the assets you have to run your business rather than taking out loans or bringing in investors. Instead of borrowing from investors and bankers, your business has the option of using its own money to finance its operations. This approach can save money on interest payments and free your company from being accountable to outside parties. However, it can limit expansion options if you don't have enough cash available to proceed with your plans. the following are some sources of internal funding;